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 .
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China Southern to buy 96 Airbus jets in $12.2B deal