Air China Limited (ASX: 601111) has announced a significant aircraft purchase agreement.

The company, acting as the buyer with its import agent, entered into a deal with Airbus on July 17, 2026, to acquire 15 A350-900 aircraft.

On the same date, the carrier's subsidiary, Shenzhen Airlines, also signed a contract to purchase 40 A320NEO series aircraft from the European manufacturer.

The total list price for these transactions is approximately $12.44 billion, equivalent to around RMB 84.51 billion.

Delivery of the new aircraft is scheduled to take place in batches between 2029 and 2032.

This procurement aligns with the group's strategic growth plans and market demand, supporting the optimization of its fleet structure and long-term capacity expansion.

The acquisition is expected to significantly enhance the group's overall carrying capacity.

Based on the available ton-kilometers as of December 31, 2025, and excluding potential future fleet adjustments, the purchase by the parent company is projected to increase the group's capacity by about 7.1%.

The separate purchase by Shenzhen Airlines is estimated to contribute an additional 4.3% capacity growth.

The incoming A350-900 and A320NEO models represent Airbus's latest generation of fuel-efficient and environmentally friendly aircraft.

These new planes offer substantial reductions in fuel consumption, carbon emissions, and operating costs compared to previous-generation models.

The investment will further aid the group in refining its fleet and route network, improving operational efficiency and service quality to support future capacity planning.

Additionally, it is anticipated to help lower unit operating costs and support the company's carbon reduction goals, contributing to the broader green transformation of China's aviation industry.