Air China and Hainan Airlines to buy 95 Airbus aircraft worth nearly $18b

Chinese carriers Air China and Hainan Airlines said on Friday they had signed agreements with Airbus to purchase a combined 95 aircraft, with the deals valued at up to $17.8 billion at catalogue prices, as airlines prepare for long-term capacity growth.

China's flagship carrier Air China said in a filing to the Shanghai Stock Exchange that it would buy 15 A350-900 widebody aircraft, while its subsidiary Shenzhen Airlines would purchase 40 A320neo-family narrowbody jets under agreements signed with Airbus.

Based on catalogue prices, the orders are worth about $12.44 billion in total, although Air China said the actual purchase price would be below the list price, in line with industry practice for large aircraft orders.

The aircraft are scheduled for delivery between 2029 and 2032.

Air China said the transaction, which remains subject to shareholder approval and regulatory clearances, is not expected to have a material impact on the company's cash flow or operations.

Once all aircraft are delivered, the deal is expected to increase the airline's capacity by about 11.4 percent.

The carrier said it and Shenzhen Airlines would finance the purchases through internal funds, commercial bank loans and other financing arrangements.

Separately, Hainan Airlines said it had signed an agreement with Airbus to purchase 40 A320neo-family aircraft for no more than $5.36 billion. The aircraft are expected to be delivered between 2028 and 2032.

The announcements come as Chinese airlines continue to plan fleet expansion, with fuel-efficient new-generation aircraft expected to replace older jets and support future demand.

Airbus has strengthened its position in China in recent years. The European plane maker is also expanding its manufacturing footprint in the country, where it operates an A320 family final assembly line in Tianjin and has opened a second production line.