AirAsia has signed a major fleet expansion agreement with Airbus placing a firm order for 150 A220-300 aircraft in a deal valued at approximately $6.8 billion, according to details released by the companies.

The agreement also includes options for an additional 150 A220-500 aircraft, a larger and higher-capacity variant that Airbus has not yet officially launched. The first deliveries under the confirmed order are expected to begin in the first quarter of 2028.

The A220 programme, originally developed in Canada before becoming part of Airbus, has gained significant attention in the aviation industry for its fuel efficiency, lower operating costs and suitability for regional and medium-haul routes. The A220-300 is designed to carry around 130 to 160 passengers depending on airline configuration.

Industry observers view the order as one of the most significant fleet commitments made by a low-cost Asian carrier in recent years. The deal is expected to strengthen AirAsia’s long-term expansion strategy as the airline group continues rebuilding and expanding operations across Asia and beyond.

The potential addition of the A220-500 option has also drawn attention because the aircraft has not yet been formally launched by Airbus. Aviation analysts have speculated for years about a stretched version of the A220 family aimed at serving higher-capacity routes while maintaining fuel efficiency advantages over older narrow-body aircraft.

The agreement comes as global airlines continue modernising fleets to reduce fuel consumption and operating expenses while meeting rising travel demand. Aircraft manufacturers have increasingly focused on next-generation, fuel-efficient models amid pressure from airlines to improve sustainability and profitability.

AirAsia has traditionally operated primarily Airbus narrow-body aircraft and remains one of Airbus’ largest airline customers in Asia. The latest order further deepens the long-standing partnership between the airline and the European aircraft manufacturer.

The announcement is also seen as a major boost for the A220 programme, which has steadily expanded its customer base worldwide as airlines seek flexible aircraft for short- and medium-range operations.

With deliveries beginning in 2028, the order positions AirAsia for a major fleet transformation over the coming decade while potentially giving Airbus a strong launch customer for the proposed A220-500 programme if the aircraft moves forward.

A220-300 | Business Upturn

AirAsia places massive 150-jet Airbus order, eyes next-generation A220 expansion