AirAsia has signed a Memorandum of Understanding with Airbus for 70 A321XLR aircraft, marking a key step in its transformation into the world’s first low-cost narrow-body network carrier.
The agreement, valued at USD12.25 billion, includes 50 firm orders with rights for 20 more aircraft. Deliveries are set to begin in 2028 and continue through to 2032.
Signed in Paris and witnessed by Malaysia’s Prime Minister YAB Dato’ Seri Anwar Ibrahim, the deal was formalised by Tony Fernandes, CEO of Capital A, and Christian Scherer, CEO of Airbus Commercial Aircraft.
Fernandes said: “We pioneered low-cost travel in Asia – now, we are taking it to the next level. AirAsia is on a transformative journey to become the world’s first low-cost network carrier. This is about exponential growth, connecting geographies beyond Asean, and making flying even more democratic.”
He added that the A321XLR and A321LR aircraft would be “game-changers” in enabling this global vision.
Scherer commented: “The A321XLR unlocks new opportunities for AirAsia to launch non-stop flights linking primary and secondary cities all around the globe.”
The A321XLR aircraft will complement AirAsia’s existing Airbus fleet and support its multi-hub model, with Kuala Lumpur and Bangkok positioned as key aviation centres.
The airline aims to serve longer-haul, underserved routes into Central Asia, the Middle East, and Europe, targeting 150 million guests annually by 2030 and a cumulative total of 1.5 billion since inception.
The new aircraft are expected to improve fuel efficiency by up to 20% per seat, supporting AirAsia’s sustainability and operational goals.