China Southern Airlines (NYSE:ZNH) said Friday it signed an agreement with Airbus (OTCPK:EADSF) (OTCPK:EADSY) to purchase 96 A320neo series of jets for ~$12.2B, as it seeks to build up its fleet in anticipation of a post-COVID recovery in travel demand.
The purchase of the narrowbody planes, which likely will be delivered during 2024-27, is expected to increase China Southern's (ZNH) capacity by 13%.
The move is a blow for rival Boeing (NYSE:BA), historically the Chinese carrier's biggest customer in Asia’s largest economy.
Citing uncertainty over deliveries, China Southern removed more than 100 Boeing 737 Max jets from its near-term fleet plans earlier this year.