AirAsia Announces Record-Breaking A220 Order

The airline aims to combat fuel price volatility and improve efficiency with the deal.

Parris Clarke

Thursday, May 07, 2026 at 04:00 PM ET

Verified

Edited By: Zach Vasile

[Credit: Wikimedia Commons]

Key Takeaways:

Low-cost carrier AirAsia has placed a record order for 150 Airbus A220-300 aircraft, marking the largest order to date for this aircraft type.
The A220s are intended to be AirAsia's next-generation workhorse, replacing older A320 aircraft, serving mid-density routes, and freeing up larger planes for international long-haul flights.
A key factor in the decision is the A220's roughly 20 percent greater fuel efficiency compared to the A320ceo, aimed at improving resilience against rising fuel prices.
Deliveries are expected to commence in 2028, coinciding with Airbus's plans to ramp up production at its Canadian manufacturing facility, which has faced recent challenges.

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Low-cost airline AirAsia has placed an order for 150 Airbus A220-300 aircraft, making it the largest order for the aircraft type to date, the company announced.

The deal was revealed at a ceremony on Wednesday held at Airbus’ facility in Mirabel, Canada, where the A220 is manufactured. The ceremony was attended by executives from both Airbus and AirAsia, as well as Canadian Prime Minister Mark Carney.

AirAsia said the aircraft will be the airline’s “next-generation workhorse” and will serve as a successor to aging A320 aircraft, with hopes the new aircraft will service mid-density routes and free up larger aircraft to operate long-haul flights internationally.

The carrier also cited rising fuel prices, exacerbated by the U.S.-Iran war, as a factor in the decision to place such a large order. According to company officials, the A220 is roughly 20 percent more fuel efficient than the A320ceo.

“In an environment of high fuel prices and volatility, the answer is not to stand still, it’s to double down on efficiency,” said Tony Fernandes, CEO of Capital A and an advisor to AirAsia. “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.”

With deliveries expected to begin in 2028, the order comes at a precarious time for the manufacturer. News reports suggest that production problems have plagued Airbus at its Canadian plant in recent years. According to CBC News, the facility has had issues getting out seven aircraft per month, though the company hopes to ramp up production to 13 per month by 2028.

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