Icelease Books Boeing 767-300 Freighter Conversion, With Options for Two More

Boeing will convert a 767-300 passenger jet into a freighter for lessor Icelease, with options for up to two more conversions, under an agreement the companies announced on Monday.

The deal feeds a fleet strategy that is getting harder to execute. The 767-300 is the world's most popular medium widebody converted freighter, but the pool of passenger 767s available as conversion feedstock is shrinking. Carriers are slowly pivoting to the Airbus A330-300 converted freighter for future replacement and growth.

The first aircraft takes its production slot in the first quarter of 2027, with delivery expected in the second quarter. Boeing (NYSE: BA) will carry out the retrofit work at partner ST Engineering's airframe overhaul facilities in Singapore. Icelease, formed 20 years ago as the leasing arm of Icelandair, already owns the 767s or will purchase them, then feed them to ST Engineering for conversion.

What does the deal actually change?

For Icelease, it adds widebody capacity to a cargo portfolio that until now has leaned on narrowbodies. Sigthor Einarsson, managing partner at Icelease, framed the order as a step change for the group.

"This agreement with Boeing to convert up to three Boeing 767 aircraft marks an important milestone for both Icelease and its Dublin-based sister company IAT Leasing," Einarsson said. "The Boeing 767-300 converted freighter will join the growing managed cargo aircraft portfolio of IAT Leasing, which already includes seven Boeing 737-800BCF and other freighters leased to various customers."

Those 737-800 converted freighters are not sitting idle. Some are on lease to ASL Aviation Holdings, which operates several airlines across Europe and Australia supporting express carriers, and to Tianjin Air Cargo in China.

The converted 767-300 itself carries serious capability for regional and intercontinental express work: a range of 3,300 nautical miles and a 57 metric-ton payload. That puts it squarely in the sweet spot between narrowbody feeders and large factory-built freighters like the 777.

Why lessors want widebody feeders now

The commercial backdrop is simple. Global demand for widebody freighters is high. Cargo volumes keep growing. Wars force airlines to fly long detours and commit more aircraft to meet customer schedules. And many large freighters are retiring, tightening effective capacity further.

That combination pushes operators toward converted widebodies, which are cheaper than new-build freighters and can enter service relatively fast once a production slot is secured. For forwarders and express carriers, more converted 767s mean more mid-size lift on trade lanes that don't justify a 777 or 747 but outrun a 737.

For Boeing, the order extends the revenue life of a conversion program that depends on a feedstock stream it cannot fully control. Every passenger 767 that gets scrapped, or stays in passenger service, is one fewer airframe available. The slow industry shift toward the A330-300 converted freighter reflects that arithmetic as much as any preference between OEM programs.

For Icelease and IAT Leasing, the bet is that demand stays strong through the 2027 delivery window. If it does, the two options likely get exercised.

What to watch

The timeline is the near-term marker. A Q1 2027 production slot means airframes, seats and materials must be lined up well before then. Watch whether Icelease converts the options — and whether other lessors follow it into 767 conversions or drift toward the A330 as Boeing feedstock thins.