(Yicai) April 30 -- Airbus has secured a USD21.4 billion deal with China Southern Airlines and Xiamen Airlines, the European aircraft maker’s sixth large order from Chinese carriers since the end of last year.

China Southern has ordered 102 planes from Airbus' A320neo family for delivery between 2028 and 2032, while its affiliate Xiamen Airlines has ordered 35 of the same jets for delivery between 2029 and 2032, the state-owned carrier announced late yesterday.

This latest win for Airbus in China follows one last month and four in December. China Eastern ordered 101 A320neo planes in March, including the A320neo, A321neo, and A321XLR, with a sticker price of USD15.8 billion. They will replace 53 A320s, which will exit the carrier’s fleet because of expiring leases or aging.

At the end of 2025, Juneyao Airlines and Spring Airlines unveiled deals for 25 A320 and 30 A320neo worth USD8.2 billion, while Air China said it was buying 60 A320neo valued at USD9.5 billion. China Express Airlines also put in an order for three A320 costing up to USD420 million.

The A320 is one of the world's most-used single-aisle passenger jets, with around 11,300 in service. More than 2,000 fly in China, accounting for nearly half of the country's civil aviation fleet. The A320neo is the next-generation upgrade.

Guangzhou-based China Southern noted that Airbus will offer major discounts on the list prices, which cover the airframe and engines. The jets will help the two carriers maintain steady capacity expansion, optimize fleet structure, and capture the growth opportunities brought by economic development, it added.

China Southern plans a private placement of shares to raise as much as CNY150 billion (USD20.7 billion), with CNY105 billion allocated to buying some of the new planes and the rest to replenish working capital, it said in a separate statement late yesterday.

A private placement, usually done to raise capital for specific corporate purposes, can depress a listed firm's shares through equity dilution, as the ownership percentage and earnings per share of existing shareholders fall if they are not involved in the placement.

Shares of China Southern [SHA: 600029] closed 1.6 percent lower at CNY5.41 (79 US cents) each in Shanghai today. Its Hong Kong-listed stock [HKG: 1055] fell 2.5 percent to end at HKD3.96 (50 US cents).

Controller China Southern Air Holding Group will subscribe for between CNY50 billion and CNY100 billion (USD6.9 billion and USD13.8 billion) of the newly issued shares. The other investors have not yet been decided on.

The CNY105 billion will be used to purchase 46 of the 102 new aircraft, covering a part of their actual CNY380 billion cost. Funding for the others ordered by China Southern and Xiamen Airlines will come from bank loans, internal capital reserves, and other financing channels.

In addition, China Southern reported yesterday that it swung back into the black in the first quarter of this year. Net profit was CNY14.8 billion in the three months ended March 31, thanks to better operating conditions and revenue rising 10 percent to CNY477.8 billion. That compared with a net loss of CNY7.5 billion (USD1 billion) a year earlier.

Editor: Martin Kadiev