Caijing Capital Market News On July 1, several airlines announced that the purchase of aircraft from Airbus involved more than 240 billion yuan.
According to the announcement of China Southern Airlines, the company signed an agreement with Airbus to purchase 96 A320NEO series aircraft from Airbus at a basic price of about 12.248 billion US dollars (about 81.894 billion yuan).
Air China announced that the company and its wholly-owned subsidiary Air China Import and Export Corporation, Shenzhen Airlines and Airbus signed Air China Purchase Agreement to purchase 64 Airbus A320NEO series aircraft and 32 Airbus A320NEO series aircraft from Airbus respectively. The total basic price of 96 Airbus A320NEO aircraft is about 12.213 billion US dollars (January 2020 price), and the aircraft price needs to be adjusted after calculation according to the formula.
China Eastern Airlines announced that it would buy 100 A320NEO series aircraft from Airbus. The above 100 aircraft are planned to be delivered to the company in batches from 2024 to 2027. The total basic price of 100 A320NEO series aircraft purchased this time is about 12.796 billion US dollars (about 85.756 billion yuan).
Caijing noted that the three airlines all adopt installment payment, which is not expected to have a significant impact on the company's cash flow and business operations.
Affected by the epidemic, China Southern Airlines, Air China and China Eastern Airlines all lost more than 10 billion yuan in 2021.
Of which, China Southern Airlines' operating revenue in 2021 is 101.644 billion yuan, up 9.81% year on year; Net profit loss attributable to shareholders of the listed company was 12.103 billion yuan. Air China realized an operating revenue of 74.532 billion yuan, up 7.23% year on year; The net profit loss attributable to shareholders of the listed company was 16.642 billion yuan. China Eastern Airlines' operating revenue was 67.127 billion yuan, up 14.48% year on year; Net profit loss attributable to shareholders of the listed company was 12.214 billion yuan.
In the first quarter, the three airlines still suffered losses.
As for the reason for the aircraft purchase transaction, China Southern Airlines said that, according to the company's comprehensive assessment, it is a favorable window period for the aircraft introduction negotiation. The company will take advantage of the current opportunity to strive for better aircraft purchase conditions, and this aircraft transaction will help enhance the company's market competitiveness.
"Based on the confidence in the future development of the civil aviation industry, the company needs to plan and reserve the fleet capacity in advance. In the case that the aviation market has not yet fully recovered, the company's introduction of aircraft is conducive to striving for better business conditions, and this transaction company has obtained better conditions than in the past in terms of aircraft prices and other business terms." China Eastern also said.
On July 1, the aviation sector index fell 3% to 4772.49. China Southern Airlines reported 6.98 yuan/share, down 4.51%; Air China reported 11.1 yuan per share, down 4.39%; China Eastern Airlines reported 5.17 yuan/share, down 5.83%.
According to the analysis of China Merchants Securities, with the unblocking of some regions, China's civil aviation travel demand has recovered rapidly with strong resilience. In general, the suppressed travel demand of Chinese people still has great potential, and people's travel confidence is expected to recover quickly.
As a cyclical industry, the supply and demand relationship is the leading factor in the performance of the aviation industry. The analysis of Guojin Securities said: "In the next two years, it is relatively certain that the capacity of the airline will slow down. As demand warms up, the demand growth rate will be significantly higher than the supply growth rate. With the release of the marketization effect of ticket prices, the airline's performance will rebound significantly."
