AirAsia Group is set to refresh its Philippine operations with new Airbus A220 aircraft, replacing older planes as the budget carrier adapts its network amid higher fuel costs driven by the Middle East conflict.
During a media briefing on Monday, AirAsia Group CEO Bo Lingam announced that the Philippine unit will receive new A220 jets by the end of 2027, with deployment expected in the first quarter of 2028.
The aircraft will come from AirAsia's $19-billion order for 150 A220-300 jets, with options for 150 more. The airline plans to use the A220 as its "next-generation" fleet platform, replacing older Airbus A320s and gradually reducing reliance on widebody A330 aircraft.
"Philippines is one of the markets that has old aircraft that I'm returning this year," Lingam said, noting that some planes in the Philippine unit are over 15 years old. "We are going to get the A220s end of next year, which will be deployed in the Philippines as well."
AirAsia Philippines currently operates 15 aircraft. The airline had previously aimed to expand its fleet to 21 planes by end-2025 and eventually to 25-35 aircraft over five years. Lingam added that the Philippine unit will also receive additional A320 aircraft.
Following the fleet renewal, AirAsia Philippines will rely on A220s and A321neo jets as the backbone of its medium-haul network.
Route Cuts
Amid higher fuel costs from the Middle East conflict, AirAsia Group is implementing a network-wide "route optimization" program. In the Philippines, the airline has suspended several routes: Manila–Hong Kong (since May), Manila–Tokyo and Cebu–Davao (since July 1), Manila–Roxas (from July 1), and Manila–Puerto Princesa and Manila–Tagbilaran (from October 1).
Lingam described the suspensions as temporary, with a recalibrated network strategy expected within two to three months. "Not all routes will be reinstated, but most of them will be brought back by the end of August or early September," he said.
AirAsia Philippines President Anna Victoria Lu noted that the airline is targeting a recovery in the second half of 2026, as higher fuel prices, a weaker peso, and softer travel demand have weighed on operations. She added that the carrier would revisit its growth targets after previously aiming to carry about 7 million passengers annually.
In 2025, AirAsia Philippines carried 4.6 million domestic and 1.03 million international passengers, with passenger traffic growing 14% in the first quarter.
For the group, Lingam confirmed that AirAsia remains on track to achieve its long-term goal of carrying 1 billion passengers by end-2027. "If I can bring it earlier, that will be good," he said.