Kuala Lumpur. Budget airline AirAsia is ordering 150 Airbus A220-300 jets in a deal valued at about $19 billion at list prices, marking the largest single order ever placed for the A220 aircraft.

The deal was announced Thursday at an Airbus factory in Mirabel, Quebec, attended by Canadian Prime Minister Mark Carney.

Airlines worldwide are modernizing fleets and seeking ways to manage rising costs by investing in more fuel-efficient narrow-body aircraft. The war involving Iran has added pressure by driving fuel prices higher.

AirAsia said in a statement that the A220 offers improved fuel efficiency and lower carbon emissions, helping the airline manage fuel and operational costs more effectively. With seating capacity of up to 160 passengers, the aircraft can achieve profitability with fewer travelers, allowing AirAsia to expand into smaller high-growth markets and secondary hubs that were previously considered commercially unviable.

Tony Fernandes, the airline’s co-founder and adviser, said the order reflects the group’s long-term growth ambitions and commitment to lowering operating costs.

“In an environment of high fuel prices and volatility, the answer is not to stand still — it’s to double down on efficiency,” said Fernandes, who is also chief executive of Capital A, AirAsia’s majority shareholder. “This order reflects our long-term discipline and the scale of our ambitions. The A220 is the perfect tool for our next phase of growth.”

AirAsia also holds options to expand the order to as many as 300 aircraft across the wider A220 family and potential future variants. Airlines typically receive discounts from manufacturers for large-volume purchases.

Deliveries are expected to begin in 2028. AirAsia said the aircraft will serve destinations across Southeast Asia and the broader Asia-Pacific region, allowing larger Airbus A320 and Airbus A321 jets to focus on medium-haul routes, while Airbus A330 aircraft are deployed on longer-haul services to Europe, Australia, and North America.

The order marks a major boost for Airbus, pushing total firm orders for the A220 program beyond 1,000 aircraft. As of March 2026, Airbus said it had delivered 501 A220 jets to 25 airlines worldwide.