AirAsia has ordered 150 Airbus A220-300 jets in a deal valued at about $19 billion at list prices, marking the largest single order ever placed for the A220 planes. The fleet expansion order comes with the flexibility to upsize the commitment to 300 of the A220 Aircraft Family to meet future demand.
The deal was announced Thursday at an Airbus factory in Mirabel, Quebec in the presence of Canadian Prime Minister Mark Carney.
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Global airlines are now modernizing their fleets and moving to better aircraft to manage rising costs by purchasing fuel-efficient narrow-body jets. The Middle East war has added to those pressures, pushing prices for all sorts of fuels higher, especially Aviation-Turbine Fuel (ATF).
In a statement released on Thursday, AirAsia said 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. The aircraft, equipped with a capacity of up to 160 seats, the aircraft 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 AirAsia'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."
The airline expects the delivery of the aircraft is expected to begin in 2028, which would help to serve serve destinations across Southeast Asia and the wider Asia-Pacific. The move will further free up larger A320s and A321s for mid-haul routes and A330s to fly longer-haul routes to Europe, Australia and North America.
The AirAsia order comes as a major boost for Airbus, pushing its total firm orders for the A220 planes beyond 1,000. As of the end of March 2026, Airbus said it had delivered 501 A220 aircraft to 25 carriers.
