Air China and its subsidiary Shenzhen Airlines agreed to purchase 55 Airbus jets with a combined sticker price of $12.4 billion, a move that positions China's flag carrier to grow its network while transitioning to newer, more economical aircraft.
Air China will take 15 wide-body A350-900s while its unit Shenzhen Airlines buys 40 narrow-body A320neo jets, with deliveries running through 2032
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Air China and its subsidiary Shenzhen Airlines agreed to purchase 55 Airbus jets with a combined sticker price of $12.4 billion, a move that positions China's flag carrier to grow its network while transitioning to newer, more economical aircraft.
Air China will buy 15 A350-900 wide-body jets whose January 2025 catalogue value works out to roughly $6.09 billion, with handovers due between 2030 and 2032. Shenzhen Airlines will separately take 40 narrow-body A320neo-family aircraft carrying a January 2024 catalogue value of roughly $6.35 billion, with deliveries running from 2029 through 2032, the company disclosed in a Shanghai Stock Exchange filing.
The final purchase prices will be lower, with Airbus extending discounts on both deals — a routine feature of bulk aircraft transactions, Air China said. Both carriers intend to cover the cost using a blend of cash on hand, borrowing from commercial lenders, and additional financing channels.
The incoming fleet is projected to lift the Air China group's overall capacity by roughly 7.1% and Shenzhen Airlines' by roughly 4.3%, measured against the two carriers' combined seat and cargo volume at the end of 2025, according to Reuters. Some of the jets will replace retiring aircraft rather than add entirely new capacity. Air China said the incoming fleet would help optimize its route network and improve operational efficiency.
The purchases reflect a sustained push by Chinese airlines to grow their operations in the years since the pandemic. Air China separately warned investors it expects to post a net loss of as much as 2.6 billion yuan in the first six months of the year, pointing to high fuel costs as the primary drag on earnings, according to Reuters.
Within Air China's network, the A350-900 handles intercontinental flying, while the A320neo family goes up against Boeing $BA's 737 MAX for shorter-range domestic and regional routes.
Friday's announcement is part of a broader wave of Chinese airline orders for Airbus jets. Hainan Airlines separately agreed to buy 40 A320neo-family aircraft for a list price of up to $5.4 billion, bringing the combined total across the three carriers to 95 jets worth roughly $17.8 billion.
China Eastern Airlines struck a deal last month covering 25 A330neo wide-body jets priced at roughly $9.35 billion, on top of a March announcement to acquire 101 A320neo planes for around $15.8 billion. China Southern Airlines and its Xiamen Airlines unit separately committed in April to a 137-aircraft package worth $21.4 billion.
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