HONG KONG/PARIS: China Eastern Airlines plans to purchase 25 A330neo aircraft from Airbus in a deal valued at about US$9.35 billion at list prices, as the carrier expands its long-haul fleet to support growing international operations.

The Shanghai-based airline said on June 26 that the aircraft would be delivered in batches between 2029 and 2033 under an agreement signed with Airbus in Shanghai earlier in the day.

China Eastern said the $9.35 billion catalog value is based on Airbus' January 2025 list prices, adding that the actual purchase price would be lower after securing a discount more favorable than in previous purchases. Large discounts are standard practice for major aircraft orders.

The airline said the new widebody jets will primarily operate from Shanghai Pudong Airport, helping expand intercontinental routes, increase flight frequencies, and strengthen the airport's role as a long-haul transit hub.

The order follows a separate agreement signed in March for 101 Airbus A320neo aircraft with a catalog value of about $15.8 billion, as China's major airlines focus on international expansion to drive growth.

The deal also comes as Airbus seeks to expand its presence in China, the world's second-largest aviation market, where it expects passenger traffic to grow by about 5% annually over the next two decades.

It was previously reported that Airbus has held intermittent talks in recent years over a potential order of up to 500 aircraft from China, although no agreement was announced during French President Emmanuel Macron's visit to China in December.

The A330neo is a more fuel-efficient version of Airbus's earlier A330 long-haul aircraft, featuring redesigned wings, improved aerodynamics, and Rolls-Royce Trent 7000 engines.

China Eastern said at least 10 older A330 aircraft are expected to retire during the delivery period, meaning some of the new jets will replace aging planes.

The airline said the purchase will be financed through a combination of internal funds, bank loans, bond issuances, and other financing, adding that the phased payment schedule is not expected to have a material impact on its cash flow or operations.

In a separate filing, China Eastern said one of its offshore units plans to issue overseas bonds worth up to 2.8 billion yuan ($411.89 million), without specifying how the proceeds would be used.