AirAsia bets big on efficiency with order for 150 Airbus A220 jets
Budget airline AirAsia has announced an order for 150 Airbus A220-300 jets, valued at about $19 billion at list prices
KUALA LUMPUR, Malaysia -- Budget airline AirAsia is ordering 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 deal was announced Thursday at an Airbus factory in Mirabel, Quebec. Canadian Prime Minister Mark Carney attended.
Airlines are modernizing their fleets and moving to better manage rising costs by purchasing fuel-efficient narrow-body jets.
The Iran war has added to those pressures, pushing prices for all sorts of fuels higher.
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 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.
Delivery of the aircraft is due to begin in 2028 and AirAsia said it will serve destinations across Southeast Asia and the wider Asia-Pacific. That will free up larger A320s and A321s for mid-haul routes and A330s to fly longer-haul routes to Europe, Australia and North America.
The order is a 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.
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