PARIS, Oct 30 (Reuters) - Airbus has delivered

its first A321XLR, the industry's longest-range single-aisle

jet, after Spanish airline Iberia took ownership of the plane,

the European planemaker said on Wednesday.

The plane, which took five years to develop and targets a

market previously served by Boeing's ( BA ) out-of-production 757 or

larger wide-bodies, was handed over late on Tuesday and was due

to fly to Madrid on Wednesday, according to Flightradar24 data.

The delivery, first reported by Reuters on Tuesday,

highlights a drive by Airbus and Boeing ( BA ) to extend the

performance of the industry's best-selling single-aisle jets.

Launched in 2019 to steal a march on Boeing's ( BA ) plans at

the time to build a new jet in the middle of the market, the

A321XLR targets a gap left by the out-of-production Boeing 757,

where the A321 family outsells the largest versions of the 737

MAX.

It features a novel type of fuel tank, moulded into the

fuselage to eke out more space for fuel and extend the range.

The design initially raised concerns about the risk of fire

and evacuation times in the event of an accident, prompting

design changes before it could be certified.

Analysts say the resulting extra weight chipped away at its

maximum range, though Airbus says it will still allow airlines

to open up new routes for such relatively small planes, like New

York to Hamburg or Chicago to Milan.

The planemaker said it had sold more than 500 A321XLR jets.

Boeing ( BA ) has said the XLR addresses only a small niche in the

overall market for single-aisle jets, the busiest part of the

industry, which it pegs at 33,380 aircraft over 20 years.

The arrival of a new model also highlights industry efforts

to fly more efficiently and burn less fuel.

Iberia said on its website that the arrival of the A321XLR

would help it comply with its environmental commitments, part of

an industry-wide effort to eliminate net CO2 emissions by 2050.

The latest generation of Airbus and Boeing ( BA ) jets use recently

developed engines that the industry says will burn 15-20% less

fuel than the previous generation.

The jet delivered to Iberia is powered by LEAP engines from

CFM International, owned by GE Aerospace and Safran

. RTX unit Pratt & Whitney also offers

engines for the jet.