AirAsia orders up to 70 Airbus A321XLR in landmark $12 billion deal
July 4, 2025
AirAsia has signed a significant deal for as many as 70 Airbus A321XLR, 50 under an MoU and 20 conversion options. The carrier says the agreement is valued at $12.25 billion.
The mega Airbus order marks a turning point for the airline, which has struggled financially since the pandemic. In March, its parent company, Capital A, secured $226 million to exit financial distress.
The order, previously rumoured to be announced at the recent Paris Air Show, was instead timed to coincide with the state visit of Prime Minister of Malaysia YAB Dato’ Seri Anwar Ibrahim.
The Prime Minister witnessed the signing today, 4 July, in Paris between CEO Tony Fernandes and Airbus Commercial CEO Christian Scherer.
AirAsia wants to become a low-cost network carrier
The additional range of the Airbus A321XLR, a maximum of 4,700 nmi, will allow AirAsia to expand beyond its Southeast Asian home, into Europe and even Africa.
Reuters reports that CEO Fernandes sees a future where AirAsia is connected to hub and spoke bases in the Middle East, Europe and Asia-Pacific. He is said to be in discussions with four cities in the Gulf, including Saudi Arabia and Ras Al Khaimah.
“This is about exponential growth, connecting geographies beyond Asean, and making flying even more democratic,” explained Fernandes. “We gave people in Asean the opportunity to explore Asia – now we want the world to see Asean, and Asean to see the world.”
The airline said it aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception.
Another AirAsia order coming soon
While the order is a huge vote of confidence for the Airbus long range narrowbody and the second-largest commitment to the type after IndiGo’s 69 aircraft order, it may not be entirely new to Airbus’s books.
AirAsia still maintains a huge backlog with Airbus of some 350 aircraft. The releases seen today do not explicitly specify whether any portion of this order is new or if it’s entirely a conversion, but certainly at least part of it is already existing in the backlog.
Nevertheless, Reuters reports that Fernandes has indicated another order is imminent. He said the airline intends to order another 150 aircraft ‘within a month,’ and that this order would complete the future fleet strategy for the time being.
While he didn’t specify what type of aircraft would be ordered, AirAsia is known to have been in talks regarding regional jets, specifically the Airbus A220 and the Embraer E2.
