AirAsia X Bhd has signed a multibillion-dollar agreement to purchase 150 Airbus A220-300 aircraft in a deal valued at approximately US$6.8 billion, providing a major boost to Airbus’ manufacturing facility in Mirabel, Quebec.
The agreement was signed by AirAsia co-founder Tony Fernandes at the Airbus Canada factory, confirming earlier reports about the transaction.
The deal also includes options for 150 additional A220-500 aircraft, a higher-capacity variant seating over 180 passengers that has not yet entered production.
Tony Fernandes said Airbus is expected to decide by the fourth quarter whether to proceed with the A220-500 program, with possible deliveries beginning around 2031–2032. He added that Canadian government support may help accelerate the program. Airbus shares rose more than 6% in New York trading after the announcement.
Key Highlights
AirAsia X placed a US$6.8 billion order for 150 Airbus A220 aircraft with options for 150 more The deal boosts Airbus’ Quebec A220 program and expands its order backlog by about 33% Rising fuel prices from the Iran conflict are increasing pressure on AirAsia’s low-cost business model
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Canadian Prime Minister Mark Carney described the transaction as the largest order ever for a Canadian-designed and manufactured aircraft. The A220 program, originally developed as the Bombardier CSeries before Airbus acquired control with support from the Quebec government, has faced production and profitability challenges.
Airbus still had 458 A220 aircraft left to deliver as of April 2026, and the AirAsia order increases the backlog by roughly 33%.
Airbus won the contract over Brazilian rival Embraer after previously losing several airline orders. AirAsia expects the first aircraft delivery in the first quarter of 2028.
The airline currently operates about 250 Airbus aircraft and has nearly 400 pending orders, mainly from the A320 family. The smaller A220 jets will help AirAsia expand into secondary airports and lower-demand routes.
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However, the airline remains vulnerable to rising jet fuel costs following the Iran conflict, especially because it lacks fuel hedging protection and serves price-sensitive travelers.