AirAsia orders 150 Airbus A220 jets in $19 billion fleet expansion deal

AirAsia has placed an order for 150 Airbus A220-300 jets in a deal valued at about $19 billion at list prices. The announcement was made on Thursday at an Airbus factory in Mirabel, Quebec, with Canadian Prime Minister Mark Carney in attendance, as reported by AP. The airline said the move is part of its long-term strategy to modernise its fleet and manage rising operating costs, especially as fuel prices continue to climb amid global pressures linked to the Iran war.AirAsia said in a statement that the A220 aircraft is more fuel efficient and emits less carbon, helping to boost efficiency and better cope with high fuel prices and other costs. With a capacity of up to 160 seats, it can reach profitability with fewer passengers, helping to open up smaller, high-growth markets and secondary hubs that were previously commercially unviable, it said.Tony Fernandes, the airline's co-founder and adviser, said the order reflected the group’s long-term growth ambitions and focus on cutting operating costs. “In an environment of high fuel prices and volatility, the answer is not to stand still, it’s to double down on efficiency,” said Fernandes, who is also CEO of Capital A, the majority stakeholder in the airline. “This order reflects our long-term discipline and the scale of our ambitions. The A220 is the perfect tool for our next phase of growth."AirAsia also said it has the option to increase the order to as many as 300 aircraft, covering the wider A220 family and potential future variants. Airlines often get a discount from list prices when they buy in bulk.Deliveries of the aircraft are due to begin in 2028, with AirAsia planning to deploy them across Southeast Asia and the wider Asia-Pacific region. The airline said this will allow its existing A320s and A321s to shift to mid-haul routes, while its A330 fleet will be used for longer-haul services to Europe, Australia, and North America.The order is also a significant boost for Airbus, taking total firm orders for the A220 program beyond 1,000 aircraft. As of the end of March 2026, Airbus said it had delivered 501 A220 aircraft to 25 carriers.