Record-breaking deal: AirAsia X orders 150 A220S, secures 150 options, and debuts 160-seat configuration

Mirabel, Canada – AirAsia X Berhad (AAX/AirAsia Group*) has achieved a significant milestone in its fleet expansion plans by announcing a comprehensive and firm agreement with aerospace manufacturer Airbus. The total value of this commitment is approximately USD 19 billion based on list prices, covering the procurement of 150 Airbus A220-300 aircraft. Furthermore, the agreement includes a strategic option to expand this order to include up to 300 aircraft within the Airbus A220 Family, allowing the airline to scale its fleet in response to future market demand. This deal marks the largest firm order ever placed for the A220 aircraft type by any airline worldwide, underscoring its importance. The agreement indicates a pivotal shift in AirAsia’s fleet strategy, emphasizing operational efficiency, cost management, and maintaining healthy profit margins amidst the dynamic and competitive global aviation industry.

The order was officially announced during a formal ceremony held at the Airbus manufacturing facility in Mirabel, Quebec, Canada. The event was attended by notable dignitaries, including Tan Sri Tony Fernandes, the Chief Executive Officer of Capital A, a prominent aviation and transportation conglomerate, and Lars Wagner, the Chief Executive Officer of Airbus Commercial Aircraft, one of the world’s leading aircraft manufacturers. The ceremony took place in the esteemed presence of the Right Honourable Mark Carney, who was serving as the Prime Minister of Canada at the time, and The Honourable Christine Frechette, the Premier of Quebec, both of whom highlighted the significance of this deal for the region’s aerospace industry and economic development.

With this order, AirAsia marks a historic milestone as the very first global launch customer for the high-density, 160-seat configuration of the aircraft. This particular variant is designed to serve as the Group’s next-generation efficiency workhorse, offering immediate capacity that is precisely right-sized to optimize profit margins on mid-density routes. The A220 is a highly scalable and versatile aircraft, providing a seamless pathway to the future A220-500 model, which is intended to meet the company’s evolving capacity demands. It is also positioned as a successor to the aging A320 aircraft within a similar capacity range of over 180 seats. Powered by advanced, state-of-the-art engine technology, the A220 ranks among the most fuel-efficient aircraft in its class, delivering approximately 20% greater fuel efficiency and approximately 20% lower emissions compared to the earlier A320ceo model.

The A220 fits naturally into the Group’s multi-gauge fleet. It offers the flexibility to meet demand easily, enabling AirAsia to significantly boost flight frequencies on current routes. This provides passengers with more departure options each day and improved connectivity, supporting Fly-Thru traffic.

Additionally, the A220’s capacity allows it to become profitable with fewer passengers compared to larger narrowbody planes. This capability enables access to smaller, rapidly growing markets and secondary hubs that were once commercially infeasible, supporting AirAsia’s goal of making travel more accessible worldwide and ensuring everyone can fly.

Commenting on the historic order, Bo Lingam, Group CEO of AirAsia Group, said, “AirAsia has spent more than two decades making the world smaller. We built Malaysia into the world’s top low-cost carrier hub, and we opened up air travel to millions of people across Asia who had never flown before. This plane enables us to build the largest and most dense network, serving as a vital tool for efficiency. Its range of up to 7 hours opens up entirely new possibilities, and allows us to match right-sized capacity to demand and give our guests the flexibility to fly whenever they want through increased frequencies. We have democratised travel in Asia by opening up routes that were never feasible before, and now we are going to do it for the world.”

Tony Fernandes, CEO of Capital A and Advisor to AirAsia Group, added, “In an environment of high fuel prices and volatility, the answer is not to stand still, it’s to double down on efficiency. This aircraft materially improves our fuel burn and trip costs, strengthening our resilience regardless of where the cycle goes. We never waste a crisis at AirAsia- we make bold decisions at the right moment, not the easiest moment. 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, allowing us to build the world’s first true low-cost network carrier. Beyond the airlines, this agreement strengthens the broader ecosystem we have built in Capital A, from cargo, MRO, to digital businesses, and will create real jobs and opportunities in the markets we fly to. Our partnership with Airbus spans more than two decades and has been central to everything we have achieved. Today is another milestone in that journey, and there are many more to come.”

Lars Wagner, CEO of Airbus Commercial Aircraft, said, “The A220 will provide an optimal platform for AirAsia, combining low operating costs with the latest technology to maximise productivity and also open up new routes across Asia that were not feasible before. Everyone at Airbus has been pleased to work with AirAsia to finalise this new contract, which is fully aligned with the airline’s new network strategy.”

Upon delivery starting in 2028, the aircraft will be responsible for servicing a wide range of destinations throughout the ASEAN region, including major cities and emerging markets, and will extend its reach into the broader Asia-Pacific region. This deployment will enable the airline to free up larger aircraft such as A320S and A321S for mid-haul routes within Asia and nearby markets. Meanwhile, the larger A330S will be available to operate longer-haul routes, flying directly into Europe, Australia, and North America, thereby expanding the airline’s international connectivity.

*The name change from AirAsia X Berhad to AirAsia Group Berhad is subject to shareholder approval at the company’s 19th Annual General Meeting and registration by the Companies Commission of Malaysia (CCM).

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