China Southern Airlines Group Orders 137 Airbus A320neo Jets

GUANGZHOU — China Southern Airlines (CZ) and its subsidiary Xiamen Airlines (MF) have signed agreements with Airbus for a total of 137 A320neo-family aircraft, representing one of the largest narrowbody orders this year. CZ will purchase 102 aircraft and Xiamen Airlines will acquire 35, with deliveries scheduled from 2028 to 2032.

According to chinadailyasia.com, the combined catalog value of the deal is approximately US$21.4 billion, though the actual price is lower due to undisclosed concessions from Airbus. China Southern will fund the purchase through a combination of internal resources and external financing.

Order driven by demand recovery

The order comes as China’s largest state-owned airline returns to profit and rebuilds international traffic. Reuters reported that CZ posted a first-quarter net profit of 1.48 billion yuan, reversing a loss from a year earlier, while its international passenger traffic in March rose 23% year over year. Reuters also said Chinese international airline capacity is forecast to reach about 91% of 2019 levels this summer, with Europe and Australasia emerging as the main growth corridors.

This order signals that CZ anticipates medium-term growth in short- and medium-haul markets, despite increasing volatility in the operating environment. Reuters reported that the sector faces challenges from higher fuel prices due to the war in Iran, and that shares of CZ, Air China (CA), and China Eastern (MU) declined on Thursday despite improved profitability.

Airbus strengthens position in China

This agreement further strengthens Airbus’ presence in the Chinese market. Reuters reported that China Eastern ordered 101 A320neo-family aircraft last month, marking another significant commitment from a Chinese carrier. The latest deal reinforces Airbus’ position in a key growth market, especially as long-haul recovery remains inconsistent and narrowbody efficiency gains importance.

China Southern is preparing for long-term recovery, with deliveries beginning in 2028. This order reflects a strategic focus on future capacity and renewal, aligned with anticipated demand several years ahead. It also highlights a shift in international priorities, with greater emphasis on Asia-Pacific, Europe, and Australasia, and less immediate focus on North America.