Malaysian budget carrier AirAsia has placed an order for 150 Airbus A220-300 aircraft in the largest single firm order for the model to date, Airbus announced Tuesday, marking a major expansion move for the Southeast Asian airline group.

The agreement, unveiled at Airbus facilities in Mirabel, Canada, pushes total firm orders for the A220 programme beyond the 1,000-aircraft milestone, according to the European aircraft manufacturer.

The signing ceremony was attended by Tony Fernandes, chief executive of Capital A and adviser to AirAsia Group, and Lars Wagner. Canadian Prime Minister Mark Carney and Quebec Premier Christine Frechette were also present.

Under the agreement, AirAsia becomes a new customer for the A220 programme and the launch operator of a new 160-seat cabin configuration of the A220-300. Airbus said the addition of an extra overwing exit on each side of the aircraft made the increased seating capacity possible.

AirAsia said the aircraft would support the airline’s plans to expand services across Southeast Asia and into Central Asia while allowing larger aircraft in its fleet to be deployed on longer-distance routes.

“We have built AirAsia by making bold decisions at the right moment, not the easiest moment,” Fernandes said in a statement. He added that the aircraft would help the group develop “the world's first true low-cost network carrier.”

Wagner said the A220 would provide AirAsia with “low operating costs” and sufficient range to open new routes across Asia and beyond.

The order strengthens the long-standing relationship between AirAsia and Airbus, whose aircraft already make up the bulk of the Malaysian carrier’s fleet. AirAsia has historically operated Airbus narrow-body aircraft, particularly the A320 family, as part of its low-cost business model.

Airbus designed the A220 for routes requiring between 100 and 160 seats after acquiring the programme from Canada’s Bombardier. Airbus claims that the aircraft consumes less fuel and has a longer range than older-generation jets in the same category.

As of the end of March 2026, Airbus had delivered 501 A220 aircraft to 25 operators worldwide.

For passengers, the order could lead to the opening of additional direct routes and increased connectivity across Asia in the coming years. The new cabin configuration may also allow airlines to carry more passengers while maintaining lower operating expenses.

Airbus said the A220 can already operate using up to 50 percent sustainable aviation fuel (SAF), with the manufacturer aiming for all its aircraft to be capable of flying on 100 percent SAF by 2030.

Financial terms of the agreement and the delivery timeline were not disclosed.

Source: Airbus PR