Chinese Airlines Swing to Profit; China Southern Places Airbus Order Worth $21.4 billion

By Kimberley Kao

Two of China's largest airlines swung to profit in the first quarter, with China Southern separately announcing aircraft purchases worth $21.4 billion from Airbus.

China Southern, one of China's three major state-owned carriers, reported a net profit of 1.48 billion yuan, equivalent to $216.4 million, it said late Wednesday. That compares with a net loss of 747 million yuan in the year-earlier period.

The airline attributed the performance to a "sustained improvement in production and operations."

Operating revenue rose 10% to 47.78 billion yuan.

Chinese flag carrier Air China also swung to a profit for the first quarter. It posted a net profit of 1.71 billion yuan, compared with a net loss of 2.04 billion yuan a year earlier.

It attributed the improved profitability to continuous route optimization and an increase in operating income while taking cost control measures.

The results come despite the macroeconomic uncertainties and disruptions to air travel arising from the ongoing Middle East conflict.

China Southern said it and its subsidiary, Xiamen Airlines, plan to buy 137 Airbus A320neo narrow-body aircraft. The deal, which includes negotiated price concessions from Airbus, is intended to "enhance the group's market competitiveness by increasing its flight capacity," it said.

China Southern will purchase 102 jets, and Xiamen Airlines will buy 35 jets. The aircraft deliveries are scheduled in stages from 2028 to 2032.

The state-owned carrier plans to raise up to 15 billion yuan through the issuance of up to 5.44 billion new A-shares to help finance the purchase of the aircraft and supplement general working capital.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

April 29, 2026 21:39 ET (01:39 GMT)