China Southern and Xiamen Airlines Order 137 Airbus A320NEO Jets in Major Fleet Expansion

Claim 55% Off TipRanksUnlock hedge fund-level data and powerful investing tools for smarter, sharper decisions Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks China Southern Airlines Company Limited Class H ( (HK:1055) ) has provided an update. China Southern Airlines and its 55%-owned subsidiary Xiamen Airlines have agreed to purchase a total of 137 Airbus A320NEO family aircraft from Airbus S.A.S., with 102 aircraft ordered by the parent and 35 by the subsidiary. The transaction qualifies as a major transaction under Hong Kong listing rules, requiring shareholder approval at an extraordinary general meeting and the issuance of a circular detailing the deal. The catalogue value of the order is about US$21.4 billion, though the airlines say the actual price is lower due to undisclosed concessions negotiated at arm’s length, for which they are seeking a waiver from full disclosure to preserve commercial terms. The aircraft, to be delivered in stages between 2028 and 2032 and funded through a mix of internal resources and external financing, will significantly expand and renew the group’s narrow-body fleet, underpinning its capacity growth and competitive position over the next decade while having no material impact on unit operating costs according to the board. The most recent analyst rating on (HK:1055) stock is a Sell with a HK$3.40 price target. To see the full list of analyst forecasts on China Southern Airlines Company Limited Class H stock, see the HK:1055 Stock Forecast page. More about China Southern Airlines Company Limited Class H China Southern Airlines Company Limited is a major Chinese civil aviation carrier with a focus on passenger and cargo air transport, and it controls a 55% stake in Xiamen Airlines, which also operates in civil aviation. The group competes in both domestic and international markets and continues to modernise its fleet to support long-term growth in air travel demand. Average Trading Volume: 26,508,086 Technical Sentiment Signal: Sell Current Market Cap: HK$104.2B For an in-depth examination of 1055 stock, go to TipRanks’ Overview page.