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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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.