China Southern Airlines has agreed to buy 137 Airbus A320neo family aircraft in a deal worth about $21.4 billion at list prices, as the country's largest carrier by fleet size accelerates fleet expansion and renewal to capture rising travel demand.

China Southern said in a statement on April 29 that it and its majority-owned subsidiary, Xiamen Airlines, had signed separate agreements with Airbus to purchase 102 and 35 A320neo jets, respectively.

The European planemaker has been steadily expanding its footprint in China — the world's fastest-growing aviation market — as airlines ramp up capacity and modernize fleets. The A320 family is one of the most widely used narrow-body aircraft in China and a best-seller for Airbus globally.

China Southern said the catalogue price for the 102 aircraft is about $15.8 billion, while the 35 jets ordered by Xiamen Airlines are valued at around $5.6 billion, bringing the combined total to roughly $21.4 billion. The company added that substantial discounts are typically applied, meaning the actual transaction value will be lower. The deal is subject to shareholder approval and regulatory clearance.

Deliveries of the 102 aircraft are scheduled between 2028 and 2032, while Xiamen Airlines' jets will be delivered between 2029 and 2032.

The airline said the order would support capacity growth and optimize its fleet structure, citing opportunities such as the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the Belt and Road Initiative.

"We are pleased to receive the firm order from China Southern and Xiamen Airlines for 137 A320neo Family aircraft," an Airbus spokesman said.

Airbus said it held approximately 55 percent of market share in China By early 2026, reinforcing its lead in the market, largely overtaking Boeing. China is its largest single-country market, representing about 20 percent of its global deliveries, with more than 2,200 aircraft in service with Chinese carriers.

The latest deal adds to a string of large Airbus orders from Chinese carriers since late last year. In December, privately owned carriers Juneyao Air and Spring Airlines ordered 25 and 30 A320 family jets, respectively. State-owned giants have also placed major orders, with Air China agreeing to buy 60 A320neos on Dec 30 and China Eastern Airlines announcing an order for 101 aircraft on March 25.

Including the latest purchase, total catalogue value of Airbus orders from major Chinese airlines since 2025 has approached $55 billion, underscoring a strong post-pandemic recovery in air travel demand.

Separately, China Southern on Wednesday unveiled a plan to raise up to 15 billion yuan ($2.06 billion) through a private share placement to fund the introduction of 46 aircraft and supplement working capital. The aircraft to be introduced include A320neo jets, domestically produced C919 planes, and Boeing 737 MAX aircraft, all of which had been previously ordered.

The carrier also reported a return to profitability in the first quarter, posting net profit of 1.48 billion yuan compared with a loss a year earlier, as revenue rose 10.1 percent year-on-year.