AirAsia Orders 150 Airbus A220 Jets in US$19 Billion Deal

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AirAsia. Shutterstock

TEMPO.CO, Jakarta - AirAsia X has agreed to buy 150 Airbus A220-300 aircraft in a deal worth about US$19 billion, as the budget airline group pushes ahead with expansion plans despite continued uncertainty in the global aviation industry.

The agreement with Airbus, announced on Thursday, also gives AirAsia the option to increase the order to as many as 300 aircraft in the future, potentially making it one of the largest fleet expansion programs in the low-cost carrier sector.

The purchase marks the world’s largest single airline order for the A220 aircraft family and signals a major shift in AirAsia’s fleet strategy toward smaller, more fuel-efficient aircraft aimed at improving profitability and opening new routes across the Asia-Pacific region.

AirAsia Group CEO Bo Lingam said in a statement on May 7 that the aircraft would create new opportunities for the airline and allow it to provide capacity better aligned with market demand.

The signing ceremony was held at Airbus facilities in Mirabel, Canada, and attended by Capital A CEO and AirAsia adviser Tony Fernandes, Airbus Commercial Aircraft CEO Lars Wagner, Canadian Prime Minister Mark Carney, and Quebec Premier Christine Fréchette.

AirAsia said the aircraft would strengthen operational efficiency at a time when airlines worldwide continue to face pressure from volatile fuel prices, supply chain disruptions, and uneven travel demand recovery.

Fernandes said the airline viewed current market challenges as a reason to accelerate efficiency measures rather than slow expansion, adding that the aircraft would significantly improve fuel efficiency and reduce operating costs per flight.

The A220 fleet is expected to play a central role in AirAsia’s long-term ambition to build a globally connected low-cost airline network.

Airbus said the aircraft would enable AirAsia to expand into routes that were previously difficult to operate profitably while maintaining lower operating costs.

Deliveries are scheduled to begin in 2028, with the aircraft expected to serve routes across ASEAN and the wider Asia-Pacific region.

The addition of the A220 fleet will also allow AirAsia to redeploy its A320 and A321 aircraft to medium-haul regional services, while its A330 aircraft will focus on long-haul routes to Europe, Australia, and North America.

Read: Indian Tourists Stranded in Malaysia After Flights Canceled Amid India-Pakistan Tensions

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