Jet2 is set to operate flights from its 13th UK airport.
The airline will start flying from London Luton from next summer.
It will initially operate 17 routes to Europe and Mediterranean holiday destinations as well as the Canary Islands.
Luton Borough Council leader Hazel Simmons said Jet2’s investment would ‘deliver for our town and neighbouring communities.’
Jet2 said an initial 125 jobs will be created.
It will go up against rivals easyJet, Wizz Air, Ryanair and TUI at London Luton.
Jet2 CEO Sreve Heapy said: “Customers and independent travel agents have been asking us to open at London Luton Airport for many years now.”
