This article summarizes reporting by Reuters and Tim Hepher.

Report: AirAsia Nears Deal for 100 Airbus A220 Jets

AirAsia is reportedly in advanced negotiations to acquire approximately 100 Airbus A220 aircraft, a move that would signify a major strategic pivot for the Southeast Asian budget carrier. According to exclusive reporting by Reuters, the airline is “closing in” on the agreement, which would mark its first entry into the dedicated regional jet market.

Industry sources indicate that the deal could be finalized soon, with the upcoming Singapore Airshow, scheduled for February 3–8, 2026, viewed as a probable venue for an official announcement. If completed, this acquisition would diversify AirAsia’s fleet, which has been dominated by larger narrowbody aircraft for over a decade.

Details of the Potential Acquisition

The reported agreement involves a firm order for around 100 jets. While specific variants have not been confirmed by the airline, industry analysis suggests the carrier is targeting the A220-300, the larger variant of the family, which is favored by low-cost carriers for its higher seating capacity and unit cost efficiency.

Based on 2025 list prices, a deal for 100 A220-300 jets would be valued at approximately $9.15 billion. However, large-scale orders of this magnitude typically attract significant discounts from manufacturers, meaning the actual transaction value would likely be substantially lower.

“Airbus is closing in on a deal to sell around 100 A220 jets to AirAsia…”

, Reporting by Tim Hepher, Reuters

This potential order comes as AirAsia completes a significant corporate restructuring. In January 2026, AirAsia X completed its acquisition of Capital A’s aviation assets, consolidating short-haul and long-haul operations under a unified “AirAsia Group” umbrella. This streamlined structure appears to be facilitating a more cohesive, group-wide fleet strategy.

Strategic Rationale: Right-Sizing the Network

For years, AirAsia has operated a standardized fleet of Airbus A320 and A321 aircraft. The introduction of the A220 would represent a departure from the single-type fleet model often strictly adhered to by low-cost carriers (LCCs). However, the move aligns with a post-pandemic industry trend toward “right-sizing” capacity.

The A220-300, typically seating between 130 and 160 passengers, sits below the capacity of the A320neo (180+ seats). This allows the airline to:

• Serve Thinner Routes: Profitably operate on routes where demand is insufficient to fill an A320 but too high for turboprops.
• Open New Markets: Utilize the A220’s range (up to 3,450 nautical miles) to connect secondary cities in Indonesia, Vietnam, and potentially Northern Australia directly to major hubs like Kuala Lumpur.
• Improve Efficiency: Leverage the aircraft’s reported 25% reduction in fuel burn per seat compared to previous-generation jets, supporting the group’s sustainability and cost-reduction goals.

AirPro News Analysis

The Shift from Volume to Precision

We view this potential order as a signal that AirAsia is moving from a “survival mode” strategy to one of “smart growth.” Historically, LCCs in Southeast Asia have chased volume on trunk routes using the largest possible narrowbodies (like the A321). By opting for the A220, AirAsia acknowledges that the next phase of growth lies in connecting secondary and tertiary markets that cannot support 180-seat aircraft.

Furthermore, this is a significant win for the Airbus A220 program in a region where it has faced stiff competition. Reports indicate that AirAsia also evaluated the Embraer E195-E2. Selecting the A220 reinforces Airbus’s dominance in the carrier’s fleet, despite the A220 having a different cockpit and supply chain than the A320 family.

Fleet Evolution and Competitor Context

AirAsia launched in 1996 with Boeing 737-300s before transitioning to an all-Airbus fleet to standardize maintenance and training. Introducing a second fleet type adds complexity, but the operational savings of the A220 on specific routes appear to outweigh the costs of diversification.

According to market reports, the deal is not yet signed, and negotiations regarding pricing and delivery slots are ongoing. However, the timing aligns with the industry’s recovery trajectory, where airlines are locking in delivery slots for the late 2020s to secure future capacity.

Frequently Asked Questions

What is the value of the deal?

At list prices, 100 A220 jets are valued at roughly $9.15 billion, though the final price will likely be much lower due to bulk discounts.

When will the deal be announced?

Sources suggest an announcement could be made during the Singapore Airshow, which runs from February 3–8, 2026.

Why is AirAsia buying smaller jets?

The A220 allows the airline to fly profitably on routes with lower passenger demand (“thin routes”) that are not economical for larger A320 aircraft.

Sources

• Reuters
• MarketScreener
• FlightGlobal