We have orders for aircraft in every market segment except 150-160 seat jets. Given we could get dozens in a very quick time at presumably a very cheap cost, this makes sense.
We have
A220-100 (109)
A220-300 (130)
A321NEO (190)

a 160 seat airframe would fit quite nice in that picture, especially since we have young 737-90ERs on property already.