The airline was initially established in 2006 as FlyAsian Express (FAX) and began by operating regional routes under Malaysia’s Rural Air Service.
Despite challenges such as fluctuating fuel prices and increased competition, the airline focused on strategic growth through fleet expansion and operational improvements.
In 2024, the airline continued its recovery with a focus on international expansion, including launching flights Nairobi, Kenya and Almaty, Kazakhstan, marking its entry into the African and Central Asian markets.
Despite its ambitions, FAX encountered operational difficulties, such as low passenger demand on certain routes, maintenance issues and occasional flight cancellations.
On April 11, 2007, Tony Fernandes, CEO of AirAsia, proposed transferring the operations to Firefly, a subsidiary of Malaysia Airlines with greater expertise in turboprop services.
Branson also highlighted opportunities for collaboration with Virgin Blue, including codeshare agreements and loyalty programs, to improve connectivity and passenger benefits.
[12] The airline's inaugural long-haul flight departed from Kuala Lumpur to Gold Coast Airport in Australia on November 2, 2007, offering promotional fares as low as MYR 50 (USD 17).
[16] To maintain its cost-effective model, the airline avoided high-cost airports like Sydney, focusing instead on more economical hubs to enhance operational efficiency and sustain competitive pricing.
In 2009, AirAsia X expanded its operations to Europe with the launch of direct flights from Kuala Lumpur to London-Stansted, marking its entry into the intercontinental market, later shifting the service to London-Gatwick in 2011.
[18] This growth made AirAsia X the first budget carrier to serve the Kangaroo Route, connecting long-haul travel between Australia, Southeast Asia and Europe.
[19] By 2012, AirAsia X had to withdraw from several unprofitable routes, such as Delhi, Mumbai, Paris and London, citing high operational costs and insufficient demand.
[23] This phase of trial and error highlighted AirAsia X’s ongoing efforts to balance expansion with long-term sustainability in a highly competitive market.
2019, the airline had added several new international routes from Kuala Lumpur, including services to Fukuoka, Lanzhou, Taipei, Osaka, Tokyo (Narita) and Singapore.
AirAsia X’s recovery efforts gained momentum in 2023, with the airline carrying over 2.8 million passengers, a remarkable 6.8-fold increase compared to the previous year.
The airline achieved a passenger load factor (PLF) of 80%, driven by increased frequencies on key routes such as Seoul, Sydney and Melbourne.
[31] The airline continued its recovery trajectory by expanding its global reach, launching its first flight to Nairobi, Kenya in November 2024, marking its entry into the African market.
By uniting the long-haul and short-haul operations under one brand, the airline group sought to enhance efficiency and strengthen its position within the aviation industry.
[49] However, by June 2022, the airline confirmed its commitment to receiving Airbus A330neos and A321XLRs, with deliveries expected to begin in 2026, as it gradually resumed operations after a two-year hiatus.
The new headquarters, known as "RedQuarters" or "RedQ," was named by Filipina flight attendant January Ann Baysa, and its groundbreaking ceremony took place in November 2014.
According to data from Bloomberg cited by The Edge in February 2022, the largest shareholder of AirAsia X Berhad was Tune Group, a private investment vehicle owned by Tony Fernandes and Kamarudin Meranun, holding a 17.8% stake.
The airline, as the long-haul arm of Thai AirAsia, commenced operations in June 2014 with its first flight to Seoul and expanded to other destinations such as Osaka and Tokyo.
After facing disruptions due to the COVID-19 pandemic, including a suspension of domestic flights in 2021, the airline announced in 2022 that it would relocate its operations to Suvarnabhumi Airport and filed for bankruptcy, which did not affect its ongoing services.