How China’s 500 Airbus Jets order could reshape global aviation market

China is reportedly preparing to order as many as 500 Airbus aircraft in what could become one of the largest single aviation deals in history. This could signal a significant shift away from U.S. manufacturer Boeing amid prolonged trade tensions.

European leaders are expected in Beijing next month to mark the deal, which is poised to deepen China’s commercial aviation partnership with Airbus. Most of the aircraft in the order will likely be from the A320neo family, already produced at Airbus’ Tianjin facility, with widebody A330neos also under strong consideration.

Boeing sidestepped as Airbus soars

The deal, still under negotiation, could range from 300 to 500 aircraft, surpassing Air India’s 2023 record of 470 jets. China’s state-run carriers, Air China, China Eastern, and China Southern, are driving demand for both narrow-body aircraft and wide-body replacements for aging fleets.

Boeing, which has not secured a major Chinese order since 2017, continues to grapple with safety concerns, supply chain disruptions, and strained U.S.-China relations. Airbus, on the other hand, benefits from local production capacity and smoother diplomatic ties with Beijing.

Airbus declined to comment when contacted.

Market responds with enthusiasm

Investors swiftly reacted to reports of the order. Airbus shares jumped over 4% in Paris on Wednesday, adding more than $5 billion in market capitalization in early trading. Rolls-Royce, which manufactures the Trent 7000 engines used on the A330neo, also saw gains of 0.7%.

Boeing shares remained largely flat, as Wall Street had already priced in the manufacturer’s continued exclusion from Chinese deals.

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