Air China to Expand Fleet with 60 New A320neos for $9.5B

Air China has placed an order for 60 Airbus A320neo-family aircraft, with a total value of about $9.5 billion at list prices. The order covers a mix of A320neo, A321neo, and A319neo aircraft, reinforcing Air China’s long-term plan to modernize its fleet while preparing for sustained growth in passenger demand.

Fleet mix and efficiency gains

All aircraft will be powered by CFM LEAP-1A engines, which deliver fuel savings of 15–20 percent compared with older narrowbody models. These efficiency improvements support Air China’s strategy to double capacity by 2035 while reducing operating costs and emissions.

The breakdown includes 30 A321neos configured for high-density routes with around 200 seats, 20 A320neos seating roughly 180 passengers for core domestic and regional services, and 10 A319neos that provide flexibility on thinner routes. The new aircraft will gradually replace aging A320ceos and older Boeing 737s within Air China’s fleet of more than 450 aircraft.

Deliveries are scheduled to begin in 2027 and continue through 2032, with aircraft assembled at Airbus’ Tianjin final assembly line, the company’s first such facility outside Europe. Financing will be supported by CDB Leasing and green bond structures linked to sustainable aviation fuel and environmental targets.

Cabin upgrades

All jets will feature Airbus Airspace Cabin interiors, offering larger overhead bins, improved lighting, and layouts designed for greater comfort. The aircraft will also be WiFi-ready, supporting Air China’s push to enhance premium services as a key member of the Star Alliance network.

These upgrades are aimed at improving consistency across the airline’s narrowbody fleet, particularly on busy domestic routes and short-haul international services.

Geopolitical context

The order further reflects shifting dynamics in the global aircraft market. Ongoing US-China trade tensions have constrained Boeing deliveries. Since 2019, only 10 Boeing 737 MAX aircraft have been delivered to Chinese airlines, creating space for Airbus to strengthen its position.

To better understand how US political policies continue to influence tourism worldwide, read our explainer on Trump’s impact on the travel industry.

Photo by KUA YUE on Unsplash