Air China Signs Aircraft Purchase Agreement with Airbus for 60 A320NEO
Air China announced that the company and AIE entered into the Air China Aircraft Purchase Agreement with Airbus Company, pursuant to which the company has agreed to purchase 60 Airbus A320NEO series aircraft from Airbus. "The list price of the Airbus Aircraft to be acquired by the Company, in aggregate, is approximately $9.53 billion. Airbus Company has granted to the Company considerable price concessions with regard to the Airbus Aircraft. These concessions will take the form of credit memoranda which may be used by the Company towards the final price payment of the Airbus Aircraft to be acquired by the Company or may be used for the purpose of purchasing goods and services from Airbus Company. Such credit memoranda were determined after arm's length negotiations between the parties and as a result, the actual consideration for the Air China Aircraft Purchase is lower than the aircraft list price mentioned above," the company stated in a notice to the Hong Kong stock exchange.
Trade with 70% Backtested Accuracy
Analyst Views on 00753
About the author
G Sachs: Positive Spring Festival Tourism Trends and Strong Hotel Performance
Spring Festival Tourism Growth: Domestic tourist volume in Mainland China increased by 19% YoY to 596 million trips, with tourism spending also rising by 19% YoY to RMB803 billion, while outbound tourist volume grew by 24% YoY to 4.8 million trips.
Hotel and Airline Performance: The hotel industry saw mid to high single-digit percentage growth in RevPar, and airline ticket prices exceeded expectations, with domestic routes up 7% YoY and international routes up 15% YoY.
Macau's Gaming Revenue: Macau's average daily gross gaming revenue (GGR) was MOP786 million, a 5% YoY increase, but fell short of the expected MOP850-900 million due to a lower-than-normal VIP win rate.
Investment Outlook: Goldman Sachs highlighted favorable fundamentals for Buy-rated hoteliers and Macau casinos, as well as airlines, indicating potential growth in these sectors.
M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
M Stanley Report: CN Tourism Sector Shows Robust Recovery; AIR CHINA, HWORLD-S, Atour Lifestyle, and Others Favorably Rated
Tourism Industry Growth: The tourism sector is increasingly aligned with China's goals for enhancing well-being and happiness, with projections indicating domestic tourism consumption will rise from 13% in 2023 to 18% by 2030, contributing significantly to GDP growth.
Revenue Projections: Morgan Stanley forecasts that the tourism industry's revenue will reach RMB12 trillion by 2030, with its GDP contribution increasing from 4.8% in 2024 to 6.7%.
Investment Recommendations: Investors are encouraged to capitalize on the growing tourism demand, with Morgan Stanley highlighting five key stocks, including AIR CHINA and TRIP.COM-S, as potential beneficiaries.
Market Insights: The report also notes the short selling activity and market performance of the recommended stocks, indicating investor sentiment and market dynamics within the tourism sector.
AIR CHINA to Offer Over 70,000 Passenger Flights for 2026 Spring Festival Travel Surge
Capacity Investment: AIR CHINA plans to upgrade its capacity for the 2026 Spring Festival travel rush, increasing its registered aircraft by 25 year-on-year and operating over 70,000 passenger flights, a 10.1% increase from the previous year.
Flight Schedule: The airline will average approximately 1,800 flights daily, which is an increase of 160 flights year-on-year, focusing on key routes in major city clusters across China.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
Air China Introduces Nonstop Flight Service Between Beijing and Abu Dhabi
Inaugural Flight: AIR CHINA successfully completed its inaugural direct flight from Beijing to Abu Dhabi, marking the first direct connection between the capitals of China and the UAE operated by a Chinese airline.
New Route Details: The new route, launched in 2026, operates with Boeing 787 aircraft and offers four direct flights per week between the two cities.
G Sachs: Positive Spring Festival Tourism Trends and Strong Hotel Performance
Spring Festival Tourism Growth: Domestic tourist volume in Mainland China increased by 19% YoY to 596 million trips, with tourism spending also rising by 19% YoY to RMB803 billion, while outbound tourist volume grew by 24% YoY to 4.8 million trips.
Hotel and Airline Performance: The hotel industry saw mid to high single-digit percentage growth in RevPar, and airline ticket prices exceeded expectations, with domestic routes up 7% YoY and international routes up 15% YoY.
Macau's Gaming Revenue: Macau's average daily gross gaming revenue (GGR) was MOP786 million, a 5% YoY increase, but fell short of the expected MOP850-900 million due to a lower-than-normal VIP win rate.
Investment Outlook: Goldman Sachs highlighted favorable fundamentals for Buy-rated hoteliers and Macau casinos, as well as airlines, indicating potential growth in these sectors.
M Stanley Bullish on Recovery for Three Major Chinese Airlines, Raises Price Targets
Airline Industry Outlook: Morgan Stanley predicts a multi-year cyclical improvement in the airline industry, gaining momentum in 2026-2027 due to increased demand, despite low investor confidence.
Target Price Increases: The broker raised target prices for the airline sector by an average of 42% and upgraded the A-shares of three major airlines to Overweight.
Passenger Load Factor Improvement: An estimated annual improvement of 1-2 percentage points in the passenger load factor (PLF) suggests stronger pricing power for airlines.
Optimistic Profit Margin Potential: Morgan Stanley maintains an optimistic view on the supply-driven upcycle for Chinese airlines, indicating potential upside for profit margins if pricing exceeds expectations.
M Stanley Report: CN Tourism Sector Shows Robust Recovery; AIR CHINA, HWORLD-S, Atour Lifestyle, and Others Favorably Rated
Tourism Industry Growth: The tourism sector is increasingly aligned with China's goals for enhancing well-being and happiness, with projections indicating domestic tourism consumption will rise from 13% in 2023 to 18% by 2030, contributing significantly to GDP growth.
Revenue Projections: Morgan Stanley forecasts that the tourism industry's revenue will reach RMB12 trillion by 2030, with its GDP contribution increasing from 4.8% in 2024 to 6.7%.
Investment Recommendations: Investors are encouraged to capitalize on the growing tourism demand, with Morgan Stanley highlighting five key stocks, including AIR CHINA and TRIP.COM-S, as potential beneficiaries.
Market Insights: The report also notes the short selling activity and market performance of the recommended stocks, indicating investor sentiment and market dynamics within the tourism sector.
AIR CHINA to Offer Over 70,000 Passenger Flights for 2026 Spring Festival Travel Surge
Capacity Investment: AIR CHINA plans to upgrade its capacity for the 2026 Spring Festival travel rush, increasing its registered aircraft by 25 year-on-year and operating over 70,000 passenger flights, a 10.1% increase from the previous year.
Flight Schedule: The airline will average approximately 1,800 flights daily, which is an increase of 160 flights year-on-year, focusing on key routes in major city clusters across China.
Deadline for Free Ticket Changes and Refunds on CN-JP Routes Extended to October 24
Airline Ticket Policy Update: Air China, China Eastern Airlines, and China Southern Airlines have announced a new policy allowing free changes or refunds for tickets issued before January 26, 2026, for flights to, from, or transiting through Japan.
Initial Policy Scope: The free change and refund policy was initially limited to flights scheduled before March 28, 2026, but has now been expanded to include a broader range of tickets.
Air China Introduces Nonstop Flight Service Between Beijing and Abu Dhabi
Inaugural Flight: AIR CHINA successfully completed its inaugural direct flight from Beijing to Abu Dhabi, marking the first direct connection between the capitals of China and the UAE operated by a Chinese airline.
New Route Details: The new route, launched in 2026, operates with Boeing 787 aircraft and offers four direct flights per week between the two cities.
