AirAsia Signs Landmark Agreement for 70 Airbus A321XLRs to Expand Global Low-Cost Network

In a bold move to accelerate its global expansion, AirAsia has signed a Memorandum of Understanding (MoU) with Airbus for the purchase of 70 A321XLR aircraft, solidifying its ambition to become the world’s first low-cost network carrier operating a narrow-body fleet.

The agreement, valued at USD 12.25 billion, includes 50 firm orders and purchase rights for 20 additional aircraft. Deliveries will commence in 2028 and continue through 2032.

The signing took place in Paris and was witnessed by the Prime Minister of Malaysia, YAB Dato’ Seri Anwar Ibrahim, alongside several members of the Malaysian Cabinet. Representing the parties were Tony Fernandes, CEO of Capital A, and Christian Scherer, CEO of Airbus Commercial Aircraft.

“We pioneered low-cost travel in Asia, and now we are ready to take it global,” said Fernandes. “This milestone order represents a major leap in our transformation into the world’s first low-cost network carrier. The A321XLR and A321LR will be game-changers as we extend our reach beyond Asean into new markets.”

Christian Scherer added, “The A321XLR opens the door for AirAsia to launch non-stop routes linking key primary and secondary cities worldwide. We are proud to support their bold vision with the most efficient and capable single-aisle aircraft on the market.”

The new aircraft will enhance AirAsia’s existing Airbus fleet and support its growing multi-hub model, with Kuala Lumpur and Bangkok serving as key regional aviation centres. The A321XLR's extended range will allow the airline to open longer-haul routes to underserved destinations in Central Asia, the Middle East, and Europe.

With a goal to serve 150 million guests annually by 2030, AirAsia expects to reach a cumulative total of 1.5 billion guests flown since its inception. The A321XLR is expected to deliver a 20% improvement in fuel efficiency per seat, contributing to the airline’s sustainability and operational efficiency targets.