KUALA LUMPUR (March 5): AirAsia Aviation Group is accelerating its expansion plans by adding 14 new aircraft to its fleet in 2025, according to a statement on Wednesday.

The deliveries include four planes from Airbus and 10 from leasing companies. This growth aims to meet rising travel demand in the Asean region and solidify AirAsia's status as a top low-cost airline.

AirAsia Aviation Group is the airline arm of Capital A Bhd (KL:CAPITALA) that is being transferred to its sister company, AirAsia X Bhd (KL:AAX) under a corporate exercise that is intended to help lift Capital A out of its PN17 status.

However, Capital A in January said it extended the cut-off dates for the completion of the proposed disposal of AirAsia Aviation Group and AirAsia to AAX from Jan 25 to March 24, 2025.

AirAsia Aviation Group’s new aircraft delivery is to reflect increasing demand, with AirAsia’s internal guidance targeting 70 million passengers for FY2025, representing an 11% year-on-year increase. 

The target compares with the International Air Transport Association’s (IATA) Asia-Pacific passenger numbers target growth of 7.9% in 2025, driven by economic recovery, competitive fares, and government-led tourism campaigns.

To achieve its target, the group is expanding capacity, enhancing connectivity, and optimising its network for greater efficiency. 

AirAsia’s immediate priorities are to strengthen its domestic market share and improve Fly-Thru connectivity across all operating markets, while in the medium term, it will explore expanding into key global destinations to bring new destinations to guests.

AirAsia’s Asean market leadership positions the airline as a key connector to major international markets, enabling seamless access to destinations across Asia Pacific, Central Asia, the Middle East, and beyond.

Bo Lingam, group chief executive officer of AirAsia Aviation Group, reaffirmed the airline’s confidence in its trajectory, stating: “We’ve had a great start to 2025, and we are excited as AirAsia’s future growth is fully secured, with the next 56 aircraft already financed. 

“This gives us an unmatched runway for expansion, allowing us to scale with absolute certainty while delivering the most affordable and reliable travel experience...”

“We are accelerating towards pre-pandemic growth rates faster than anticipated, and this expansion is a testament to our confidence in the market’s strength. 

“Demand is up, load factors and yields remain strong, and we are laser-focused on route optimisations, with a disciplined focus on cost efficiency.”

With the impending aviation corporate exercise, AirAsia is poised to consolidate its network by integrating the efficiency of its short haul routes with the reach of its long haul operations, read the statement.

Additionally, the Airbus A321XLR and A321LR will be game changing in resetting low-cost regional and long-haul connectivity, while the Airbus A330 fleet will be optimised for long-haul routes, supporting AirAsia’s push into new intercontinental markets. 

This strategically planned fleet expansion will allow the airline to reduce costs while improving fuel efficiency, ensuring a sustainable and cost-effective growth model.

The confirmed aircraft deliveries will support high-demand routes, facilitate new market entries, and boost overall operational capacity, reinforcing AirAsia’s role as the leading low-cost carrier in the region.