NEW YORK, January 1, 2026, 08:30 ET — Market closed
- Air China’s Shanghai-listed shares last closed up 3.3% at 9.37 yuan after it disclosed an Airbus A320neo order.
- The carrier said it will buy 60 jets worth about $9.5 billion at list prices, with deliveries slated for 2028–2032.
- China’s stock markets are shut for the New Year holiday; trading is due to resume next week.
Air China’s Shanghai-listed shares (601111.SS) rose 3.3% to 9.37 yuan at the last close on Dec. 31 after the flag carrier disclosed a large order for Airbus narrow-body aircraft.
The deal matters now because it adds to a late-year run of Airbus orders in China’s aviation market, a sign airlines are still planning fleet growth even as fare and competition pressures linger. It also underscores Airbus’ edge over Boeing in China as geopolitics weigh on U.S. planemakers’ sales prospects.
For investors, the focus is less on near-term capacity and more on longer-term capital spending. With deliveries starting in 2028, the order points to a multi-year fleet renewal plan and the financing choices that will come with it.
Air China said it and a subsidiary signed an agreement with Airbus to buy 60 A320neo jets in a deal worth about $9.5 billion at list prices, according to a Shanghai Stock Exchange filing. The aircraft will be delivered in batches from 2028 through 2032, it said.
“List prices” refer to catalogue values before the steep discounts airlines typically negotiate. The A320neo is Airbus’ updated, fuel-efficient version of its best-selling single-aisle jet family. Reuters
The purchase falls under a 2022 framework deal between China Aviation Supplies Holding Company and Airbus covering 132 A320-family aircraft and eight A350 widebodies, Reuters reported. “Negotiations for individual contracts take time,” said Li Hanming, a U.S.-based independent aviation analyst. Reuters
Airbus said in a statement it was pleased with the order. Reuters also cited prolonged tension between Beijing and Washington as a factor that has hampered Boeing’s ability to win new orders in China.
The move in Air China’s shares came alongside gains in other listed Chinese carriers. China Southern Airlines (600029.SS) last closed up 4.6%, while China Eastern Airlines (600115.SS) gained 5.8%, Google Finance data showed.
In October, China’s three biggest airlines returned to collective profitability in the third quarter on strong summer travel demand, though analysts cautioned the recovery remained fragile due to domestic competition and the drag from high-speed rail on short-haul routes. Air China also said at the time it planned to raise up to 20 billion yuan via a private placement to shore up its balance sheet.
That backdrop keeps attention on pricing power and costs. Traders are watching passenger yields, fuel prices and how quickly international routes — particularly long-haul — continue to rebuild as carriers add capacity.
China’s stock and interbank forex markets are closed for the New Year holiday from Jan. 1 to Jan. 3 and are due to resume on Monday, Jan. 5, according to a Reuters market notice. U.S. stock markets are also closed on Jan. 1 for the holiday.
Before the next session, investors will be scanning for any follow-on airline disclosures on aircraft financing, delivery schedules and regulatory steps, as well as fresh capacity plans from peers that could tighten competition on domestic routes.
On the chart, Air China’s last session range was 8.99 to 9.45 yuan, with 9.45 matching the top of its 52-week range — a level traders often treat as near-term resistance. The prior close sits at 9.07 yuan.
