KUALA LUMPUR, Malaysia — Low-cost carrier AirAsia has committed to purchasing 150 Airbus A220-300 aircraft in a massive deal worth approximately $19 billion at catalog prices, setting a new record as the biggest single purchase ever made for this aircraft model.
Thursday’s announcement took place at an Airbus manufacturing facility in Mirabel, Quebec, with Canadian Prime Minister Mark Carney in attendance.
Carriers worldwide are upgrading their aircraft fleets and seeking better ways to control escalating expenses through the acquisition of fuel-saving narrow-body planes.
The ongoing conflict in Iran has intensified these challenges, driving up fuel costs across the board.
According to AirAsia’s statement, the A220 aircraft offers superior fuel economy and reduced carbon emissions, which will enhance operational efficiency and provide better protection against expensive fuel and other rising expenses. The plane’s capacity of up to 160 passengers allows for profitability with lower passenger loads, making it possible to serve smaller, rapidly expanding markets and secondary airports that weren’t financially feasible before.
Tony Fernandes, who co-founded the airline and serves as an adviser, explained that this purchase demonstrates the company’s strategic vision for expansion and commitment to reducing operational expenses.
“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 agreement includes provisions for AirAsia to expand the purchase to potentially 300 planes, encompassing the broader A220 series and possible future versions. Carriers typically receive substantial discounts from published prices when making large-volume purchases.
Aircraft deliveries are scheduled to commence in 2028, and AirAsia plans to deploy them on routes throughout Southeast Asia and the broader Asia-Pacific region. This strategy will allow the airline to reassign its larger A320 and A321 aircraft to medium-distance routes while using A330s for extended flights to Europe, Australia and North America.
This major purchase provides significant momentum for Airbus, bringing total confirmed A220 orders above the 1,000-aircraft milestone. Through the end of March 2026, Airbus reported completing delivery of 501 A220 planes to 25 different airlines.
