China Southern Airbus A319neo
Airbus got another significant order from a Chinese customer. China Southern Airlines said on April 29 that it will order 102 A320neo family aircraft for itself, plus 35 for partially owned (55 percent) subsidiary Xiamen Airlines.
This order follows on from that of China Eastern Airlines for 101 A320neo family aircraft, which was announced at the end of March.
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Airbus data shows that China Southern has unfilled orders for five more A320neo out of 38 and 41 A321neo aircraft out of 99 on order. All nine A319neos have been delivered. Xiamen Airlines has another 18 A320neos in the backlog out of 22 on order, as well as 18 A321neos out of 20 on order.
China Southern and Xiamen haven’t identified the engine supplier. The 167 A320neo family aircraft in the CS fleet have both the Pratt & Whitney Geared Turbofan and CFM LEAP-1A. Xiamen’s aircraft only have CFM engines.
The latest order is for further developing the airline’s growth strategy in the Guangdong-Hong Kong-Macau Greater Bay Area, the development of the Beijing-Tianjin-Hebei region, and the joint construction of the “Belt and Road” strategy. “The Purchase will help enhance the Group’s market competitiveness by increasing its flight capacity.”
There could be more orders in the air. Boeing Group CEO Kelly Ortberg said last week that he is counting on some good deals when US President Trump and Chinese President Xi meet. Their appointment has been postponed since late February over the Middle East conflict. Media reports at the time indicated that Boeing and Airbus could win orders for some 500 aircraft each.
Q1 profit
China Southern reported a RMB 1.5 billion net profit attributable to shareholders for the first quarter compared to a RMB 747 million loss for the same period last year. Revenues were up by 10 percent to RMB 47.8 billion. Operating expenses grew to RMB 46.9 billion. The carrier produced an operating profit of RMB 2.5 billion.
Other Chinese carriers also shared their Q1 results. China Eastern was back to an RMB 1.6 billion net profit from a RMB 995 million net loss year-over-year. Revenues improved by some RMB 3.7 billion to RMB 37.1 billion. Air China reported an RMB 1.7 billion net profit for the quarter versus a RMB 2.0 billion net loss. Revenues grew by RMB 4.5 billion to RMB 44.5 billion.
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