Malaysian low-cost airline AirAsia has finalised a deal with Airbus to buy 100 A321neo aircraft for an undisclosed sum.

The new order enables AirAsia to increase its capacity and offer minimal operating costs in the single-aisle category.   

With the order, AirAsia’s total number of A320 family aircraft will increase to 575.

Once delivered, the new A321neo will be run on the airline’s most popular routes and especially at airports, which suffer infrastructure issues.

AirAsia group CEO Tony Fernandes said: “AirAsia Group currently operates close to 1,000 flights per day to more than 120 destinations in 24 countries.

“We recorded a robust load factor of 85% in the first quarter of 2016, up eight percentage points from the same period last year, and we are confident of maintaining this momentum going forward.

“We recorded a robust load factor of 85% in the first quarter of 2016, up eight percentage points from the same period last year."

“The A321neo will help us to meet ongoing strong demand, as well as further reduce our cost per available seat kilometre across the group, which will translate to lower air fares for our guests.”

The airline has so far received more than 170 A320s that are being deployed in Malaysia, India, Indonesia, Japan and the Philippines.

Airbus’ A321neo family aircraft can accommodate up to 240 passengers in a single-class layout and is equipped with new generation engines and Sharklet wing tip devices.

Meanwhile, Airbus has won an order from Indian low-cost airline Go Air for 72 A320neo aircraft, as well as secured another order from Germania Group for 25 A320neos.

Image: AirAsia and Airbus officials at the contract signing ceremony. Photo: courtesy of Airbus.