Published by Global Banking & Finance Review®
Posted on January 23, 2026
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleAirbus is close to selling 100 A220 jets to AirAsia, marking the airline's first move into regional narrowbody aircraft. The deal may include options for 50 more jets.
By Tim Hepher
PARIS, Jan 23 (Reuters) - Airbus is closing in on a deal to sell around 100 A220 jets to AirAsia, marking the budget airline's first foray into regional narrowbody aircraft, industry sources said.
If confirmed, a deal including options for about 50 more aircraft on top of the main order could be announced within days as Asia's largest low-cost carrier pursues a turnaround, the sources said, asking not to be named.
Both companies declined to comment.
"We have no announcements to make at this time," an AirAsia spokesperson said.
Discussions to become the first buyer for a potential high-density, 160-seat version of the A220 first emerged ahead of last year's Paris Airshow, with Brazil's Embraer also vying for a chance to break Airbus' exclusive hold on AirAsia.
Reuters reported last week that Airbus had renewed efforts to close a deal with AirAsia for some 100 A220s, possibly as early as this month.
AirAsia is one of the European planemaker's biggest customers with more than 350 larger A320-family jets already on order. In July it ordered 50 long-range A321XLR aircraft.
AirAsia co-founder Tony Fernandes told Reuters last June the airline was ready to broaden its fleet by picking smaller planes to support new destinations.
This week, deputy Group CEO Farouk Kamal told Reuters that AirAsia continued to work with planemakers for regional-type aircraft, as it considers ordering a further 150 jets.
AirAsia has led a boom in low-cost carriers in the region in the past two decades as incomes rose.
However, pandemic travel restrictions crippled the airline's parent Capital A, prompting Malaysia's stock exchange to classify it as financially distressed in a measure known as PN17.
Fernandes, who is CEO of Capital A, said in a statement on Friday that the group had finished its PN17 regularisation plan and was "now working towards the uplift".
Consolidation of all AirAsia-branded aviation businesses under AirAsia X will allow the airline to focus on expanding operations and reducing costs, while Capital A focuses on reviving its finances.
(Reporting by Tim Hepher; Additional reporting by Danial Azhar; Editing by Susan Fenton)
The A220 jet is a family of narrow-body aircraft developed by Airbus, designed for regional and short-haul flights, offering fuel efficiency and passenger comfort.
AirAsia is a Malaysian low-cost airline that operates scheduled domestic and international flights, known for its budget-friendly fares and extensive route network.
Low-cost carriers are airlines that offer lower fares by eliminating many traditional passenger services, focusing on cost efficiency and quick turnaround times.
Explore more articles in the Finance category
