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As China's aviation industry recovers from the pandemic, China Eastern Airlines (0670.HK) announced plans to purchase 25 Airbus A330neo aircraft at a catalogue price of approximately $9.4 billion, according to a filing to the Shanghai Stock Exchange. The deal is part of the carrier's strategy to modernize its long-haul fleet and bolster its competitive position.
The order comes amid rising travel demand in China, with local carriers expanding their fleets. Per market data, China Eastern's Hong Kong-listed shares closed at HK$3.57 (close of June 25), trading between HK$3.38 and HK$3.61 on the same day. Airbus (EADSY) shares closed at $55.20. The deal also underscores ongoing competition between Airbus and Boeing for Chinese contracts.
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Sign InTechnically, China Eastern shares trade near the lower end of their daily range, suggesting investors are awaiting details on financing. No near-term catalysts are on the calendar, but markets will watch second-quarter earnings for clarity on the capital expenditure's impact on cash flow.