Air China Limited (Air China) has signed two aircraft purchase agreements with Airbus S.A.S. on 17 July 2026, marking a major expansion of its fleet and that of its 51%-owned subsidiary, Shenzhen Airlines Company Limited.

Air China will buy 15 Airbus A350-900 aircraft at an aggregate list price of US$6.09 billion (RMB41.37 billion). Deliveries are scheduled in stages from 2030 to 2032. The carrier will fund the acquisition through internal resources, commercial bank loans and other financing channels.

Separately, Shenzhen Airlines has committed to purchase 40 Airbus A320NEO series aircraft for a combined list price of US$6.35 billion (RMB43.14 billion). These single-aisle jets are slated for delivery between 2029 and 2032. Payment will be made in instalments, financed by Shenzhen Airlines’ cash, bank loans and other funding methods.

Airbus has granted both buyers “considerable price concessions” via credit memoranda, so the actual amounts payable will be lower than the stated list prices. The concessions are described as consistent with previous transactions between the parties. Exact net prices were not disclosed, with the Hong Kong Stock Exchange granting a waiver from such disclosure.

Capacity Impact and Strategic Rationale • The 15 A350-900s are expected to raise the Air China Group’s available tonne-kilometres (ATKs) by about 7.1%. • The 40 A320NEO series aircraft will add roughly 4.3% to group capacity, based on ATKs as of 31 December 2025. • Both aircraft types offer improved fuel efficiency and lower emissions compared with earlier models, supporting Air China’s cost-reduction initiatives and carbon-reduction goals. • Deliveries are timed to replace ageing aircraft and support long-term growth without overextending capacity.

Regulatory and Shareholder Approval The combined transaction exceeds 25% of the company’s applicable percentage ratios under Hong Kong Listing Rule 14.07, classifying it as a major transaction. Consequently, it requires shareholder approval and relevant state-authority clearance. Air China plans to issue a circular with further details by 24 September 2026.

Management views the purchases as consistent with normal commercial practice and beneficial to fleet optimisation, network enhancement and long-term competitiveness.