China Southern strikes landmark deal for Boeing cargo jets

China Southern Airlines has placed an order with Boeing to buy seven freighter aircraft, including five units of the all-new 777-8, which is expected to hit the market in 2028, the company announced Friday on the Shanghai Stock Exchange.

It represents the first known purchase of the 777-8 freighter by a mainland China carrier and the first orders in years of Boeing products from China after a prolonged period of trade tensions with the United States. China reopened its market to Boeing during a May visit by President Donald Trump to Beijing, promising to buy 200 Boeing aircraft.

The freighter deal was first reported by Bloomberg. China Southern said it also ordered two conventional 777 cargo jets and secured options to buy three additional 777-8s. The state-owned airline ranks in the top 10 carriers in the world by cargo traffic, according to the International Air Transport Association.

China Southern Cargo operates 19 Boeing 777 freighters in addition to managing cargo carried in the belly hold of the parent company’s passenger planes. Earlier this month, China Southern Cargo and FedEx Corp. agreed to work on finding ways to cooperate on cargo logistics. The list price for the seven Boeing aircraft is $3.

6 billion, but China Southern said it expects to pay less after commercial discounts. It is Boeing’s first 777-8 order since August, when Korean Air ordered aircraft. Boeing, which has about 70 orders for the 777-8, has fallen behind Airbus in the race for large next-generation freighters.

Airbus says it has registered 103 orders for the A350F from 14 customers. Boeing recently received a big blow when Atlas Air, a major all-cargo carrier and the largest operator of Boeing 747 jumbo jets in the world, signed a deal for 20 Airbus A350Fs after exclusively operating Boeing aircraft its entire history.

The 777-8 can carry nearly as much cargo as a 747-400 but has 30% improved fuel efficiency, 25% better operating costs per ton and up to a 60% smaller area for noise impact on the ground, according to Boeing. The company plans to deliver the first aircraft in 2028 after several years of development delays.

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