Chinese State Airlines Secure $13B Deal for 32 Jets

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China Eastern Airlines and China Southern Airlines, two major state-owned carriers, have placed significant aircraft orders with Airbus and Boeing, respectively. The combined purchase involves a total of 32 aircraft valued at approximately USD 13 billion.

China Eastern has committed to acquiring 25 wide-body A330 Neo aircraft from Airbus, with deliveries scheduled from 2029 to 2033. The list price for these jets is around USD 9.4 billion. These new planes will replace at least 10 existing A330 Ceo models that the airline plans to retire during this period. The upgrade aims to expand their intercontinental flight network and increase flight frequency at Shanghai Pudong International Airport, reinforcing its position as a major international transfer hub.

This marks the second deal between China Eastern and Airbus in just three months. In late March, the airline announced a purchase agreement for 101 A320 Neo narrow-body aircraft, with a catalog value of about USD 15.8 billion.

Meanwhile, China Southern’s wholly owned subsidiary, China Southern Cargo, has ordered two B777F and five B777-8F cargo planes from Boeing. These planes are expected to be delivered between 2027 and 2034, with a total catalog price of USD 3.6 billion. The agreement also includes an option to buy three additional B777-8F jets, which could raise the order’s value to USD 5.2 billion.

As China’s cross-border e-commerce sector matures, domestic companies are accelerating their push into global markets. This growth, paired with the development of the Greater Bay Area, presents significant opportunities for China Southern’s cargo division. The order aims to bolster the airline’s cargo market share, streamline fleet operations, and improve profitability and competitiveness.

Both airlines noted that the final prices paid will be well below the catalog prices due to substantial discounts from Airbus and Boeing.

As of mid-afternoon today, China Eastern’s stock was down 2.5 percent in Shanghai to CNY 3.95 (roughly 58 US cents) and 1.7 percent in Hong Kong to HKD 3.41 (about 43 US cents). China Southern’s shares fell 1.7 percent to CNY 5.32 in Shanghai, and its Hong Kong-listed shares dropped 1.7 percent to HKD 3.52.