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.
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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.
BofAS Raises Price Targets for Three Major Chinese Airlines and Upgrades AIR CHINA to Buy
Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.
Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).
<M Stanley Analysis> Ratings and Target Prices for Airlines, Shipping Companies, and Express Delivery Services (Table)
Airline Stock Performance: Air China, China Southern Airlines, and China Eastern Airlines experienced declines in share prices, while BOC Aviation and Travelsky Tech saw slight increases, with most airlines rated as "Overweight" by analysts.
Short Selling Activity: Significant short selling was noted across various airlines, with China Southern Airlines having the highest ratio at 18.053%, indicating investor skepticism about future performance.
Express Delivery Platforms: ZTO Express is rated "Overweight," while J&T Express and JD Logistics faced minor declines, with both rated as "Equalweight."
Shipping Sector Overview: COSCO Ship Energy showed a positive performance with a 3.431% increase, while other shipping companies like SITC and OOIL experienced declines, with varying ratings from "Overweight" to "Underweight."
M Stanley Assigns Overweight Ratings to 3 Major Chinese Airlines, Focusing on Supply-Side Prospects in Aviation, Shipping, and Courier Sectors
Morgan Stanley's Transportation Report: The report highlights that despite a soft macroeconomic outlook, the transportation market in mainland China and Hong Kong will face more opportunities than risks, focusing on supply chain constraints and market consolidation in various sectors.
Aviation Industry Ratings: Morgan Stanley has rated several airlines, including AIR CHINA, CHINA EAST AIR, CHINA SOUTH AIR, and SPRING AIRLINES, as Overweight with specific target prices, indicating a positive outlook for these stocks.
Shipping Stocks Outlook: The report expresses a bearish stance on COSCO SHIP HOLD and OOIL, rating them as Underweight, while giving an Overweight rating to COSCO SHIP ENGY and MERCHANTS SHIPPING, suggesting a more favorable view on these companies.
Courier Industry Assessment: J&T EXPRESS-W is rated as Equalweight, with expectations for market share expansion in its operating regions, reflecting a cautious but optimistic outlook for the courier 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.
BofAS Raises Price Targets for Three Major Chinese Airlines and Upgrades AIR CHINA to Buy
Positive Outlook for Asia-Pacific Airlines: BofA Securities projects strong airline profits in 2026 due to high ticket prices, healthy demand, improved cargo fundamentals, and potential oil supply surplus benefits.
Target Price Adjustments for Airlines: BofA raised target prices for several airlines, including CHINA EAST AIR to HKD2.9 (Underperform), CHINA SOUTH AIR to HKD5.92 (upgraded to Neutral), and AIR CHINA to HKD8.3 (upgraded to Buy).
<M Stanley Analysis> Ratings and Target Prices for Airlines, Shipping Companies, and Express Delivery Services (Table)
Airline Stock Performance: Air China, China Southern Airlines, and China Eastern Airlines experienced declines in share prices, while BOC Aviation and Travelsky Tech saw slight increases, with most airlines rated as "Overweight" by analysts.
Short Selling Activity: Significant short selling was noted across various airlines, with China Southern Airlines having the highest ratio at 18.053%, indicating investor skepticism about future performance.
Express Delivery Platforms: ZTO Express is rated "Overweight," while J&T Express and JD Logistics faced minor declines, with both rated as "Equalweight."
Shipping Sector Overview: COSCO Ship Energy showed a positive performance with a 3.431% increase, while other shipping companies like SITC and OOIL experienced declines, with varying ratings from "Overweight" to "Underweight."
M Stanley Assigns Overweight Ratings to 3 Major Chinese Airlines, Focusing on Supply-Side Prospects in Aviation, Shipping, and Courier Sectors
Morgan Stanley's Transportation Report: The report highlights that despite a soft macroeconomic outlook, the transportation market in mainland China and Hong Kong will face more opportunities than risks, focusing on supply chain constraints and market consolidation in various sectors.
Aviation Industry Ratings: Morgan Stanley has rated several airlines, including AIR CHINA, CHINA EAST AIR, CHINA SOUTH AIR, and SPRING AIRLINES, as Overweight with specific target prices, indicating a positive outlook for these stocks.
Shipping Stocks Outlook: The report expresses a bearish stance on COSCO SHIP HOLD and OOIL, rating them as Underweight, while giving an Overweight rating to COSCO SHIP ENGY and MERCHANTS SHIPPING, suggesting a more favorable view on these companies.
Courier Industry Assessment: J&T EXPRESS-W is rated as Equalweight, with expectations for market share expansion in its operating regions, reflecting a cautious but optimistic outlook for the courier sector.
