Re-engined with CFM International LEAP or Pratt & Whitney PW1000G engines and fitted with sharklets wingtip devices as standard, it is 15% to 20% more fuel efficient than prior models, retroactively renamed the A320ceo ( current engine option).

The A320neo family ( neo being Greek for 'new', as well as an acronym for 'new engine option') is based on the previous A319, A320, and A321 ( enhanced variant), which was then renamed A320ceo, for 'current engine option'.

The Airbus A320neo family is an incremental development of the A320 family of narrow-body airliners produced by Airbus.