Airbus extends China winning streak with US$21.4 billion order

[DUBAI] Airbus secured a major order from China Southern Airlines and one of its subsidiaries for A320neo short-haul aircraft, extending the planemaker’s winning streak in the world’s second-largest aviation market.

The deal is for 102 aircraft that will go to China Southern and 35 aircraft for its Xiamen Airlines division, according to a filing on Wednesday (Apr 29), valued at US$21.4 billion, though customers typically get steep discounts for large orders.

Airbus shares extended their gain after the order announcement, rising as much as 5 per cent in Paris trading. The stock has lost 12 per cent in value so far in 2026.

China has grown to become the biggest aviation market behind the US, and Asia’s biggest economy is a major buyer of aircraft, typically ordering jets from Airbus and Boeing in bulk and then distributing them among state-owned carriers.

The order follows major deals from China Eastern Airlines for 101 A320neo aircraft in March, valued at about US$15.8 billion. Last year, state-owned Air China bought 60 Airbus aircraft in a long-anticipated transaction worth US$9.53 billion. That same month, the Toulouse, France-based company signed sales deals with Spring Airlines and Juneyao Airlines.

The latest order comes weeks before Boeing is hoping to lock down one of the largest sales in its history when US President Donald Trump plans to visit China.

Boeing CEO Kelly Ortberg, as recently as last week, dangled the prospect of a major deal, saying Trump’s visit to the country would be “a meaningful opportunity for us”.

“I’m not going to give you the number of airplanes, but it’s a big number,” he told analysts when Boeing reported earnings this month.

The US planemaker’s Chinese business slowed after deadly crashes of its 737 Max model in 2018 and 2019, and amid rising political tensions between Beijing and Washington.

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Since July 2022, major Chinese airlines have ordered or committed to about 700 Airbus jets, including this latest deal. The European manufacturer is the biggest supplier to China, with almost 2,400 of its aircraft in the country, and the company makes some of its cash-cow single-aisle planes in Tianjin.

The China Southern deal is a welcome boost for the world’s largest planemaker. The company saw a profit slump in the first quarter, dragged down by a steep drop in aircraft deliveries, partially due to administrative issues with China that hindered the handover of almost 20 aircraft to the Asian nation.

The company has also been grappling with quality issues on its best-selling A320 family jets and restraints in engine supplies from Pratt & Whitney, forcing Airbus to low-ball its annual delivery goal. BLOOMBERG