Airbus is preparing to announce a major order for approximately 150 A220 aircraft from AirAsia, according to industry sources, the deal would mark a significant boost for the European planemaker’s smallest jet program and represent the largest order for the type to date.
The deal, expected to be unveiled in the Montreal area, comes at a critical time for the A220, which has recently faced increased competition from Embraer’s E2 family. The Brazilian manufacturer has gained traction in the regional jet segment, securing key campaigns and outselling the A220 last year, putting pressure on Airbus to reinforce demand for the aircraft.
The A220 program, originally developed by Bombardier and acquired by Airbus in 2018, is produced at facilities in Mirabel, Canada, and Mobile, Alabama. Airbus is working to ramp up production to around 12 aircraft per month by 2026 as it aims to reach break-even on the program, although supply chain challenges and engine upgrade delays continue to impact output targets.
For AirAsia, the potential order aligns with its long-term growth strategy. The Malaysia-based low-cost carrier, co-founded by Tony Fernandes, has built one of Asia’s largest budget airline networks and is now looking to diversify its fleet with smaller aircraft capable of serving secondary cities and thinner routes. The airline already has more than 350 Airbus A320-family jets on order, making it one of Airbus’ largest customers.
AirAsia’s Fleet
AirAsia operates one of the largest all-Airbus fleets among low-cost carriers globally, with more than 200 aircraft currently in service across its group airlines. The fleet is dominated by Airbus A320-family jets, including the A320 and A321neo, which form the backbone of its short- and medium-haul network.
In addition, the airline group has over 350 aircraft on order, primarily A321neos, supporting its long-term expansion strategy across Asia. AirAsia’s move to potentially add the smaller A220 would mark a strategic diversification, enabling the carrier to serve thinner routes and secondary markets more efficiently while maintaining its high-utilization, low-cost operating model.
AirAsia is one of Asia’s largest low-cost carriers, carrying more than 60 million passengers annually across its group airlines in recent years. The airline operates an extensive network of over 130 destinations, spanning Southeast Asia, North Asia, India, and Australia, with a strong focus on high-frequency short-haul routes. Its multi-hub model, anchored by Kuala Lumpur, Bangkok, Jakarta, and Manila, allows it to efficiently connect major cities with secondary markets, driving high traffic volumes and strong load factors. AirAsia’s continued network expansion is supported by growing middle-class demand in the region, making it a key player in shaping intra-Asia travel flows.
If finalized, the agreement would represent one of the largest A220 orders to date, strengthening Airbus’ position in the 100- to 130-seat market and signaling continued confidence in the long-term growth of low-cost aviation.
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Sources: AirGuide Business airguide.info, bing.com, reuters.com
