China Southern To Raise Capital For Aircraft

China Southern Airlines will issue new shares with a value of up to CNY12.7 billion yuan (USD$1.86 billion) to help pay for new aircraft.

The company said CNY7.72 billion of the capital raised will be used to part-pay for 41 aircraft and CNY104.8 million to install lightweight seats on its Airbus A320-family fleet. The balance will be used for energy conservation and emissions reduction and to supplement working capital, the airline said.

China Southern is the largest airline in China by passengers carried, 114.6 million in 2016. It also has the largest fleet in Asia, with 522 aircraft including five Airbus A380s.

In March American Airlines agreed to buy a 2.68 percent stake in China Southern for USD$200 million, in a move to improve connections between two of the world’s largest aviation markets.