Shandong Airlines is set to lease ten Boeing 737-family aircraft from three Chinese leasing companies, with the first deliveries scheduled for 2026. The airline, a subsidiary of Air China, plans to expand its fleet by acquiring six 737-800s and four 737 MAX aircraft, in a deal valued at approximately CNY2.9 billion (USD 420 million). The lease terms vary from 10 to 12 years, with deliveries occurring between 2026 and 2027.
Currently operating an all-Boeing fleet comprising 139 737-type aircraft, Shandong Airlines aims to augment its capacity through these new leases. Meanwhile, its parent company, Air China, reported a sixth consecutive annual net loss during fiscal 2025, despite a slight revenue increase of 2.8%. The airline attributed part of its financial struggles to fierce competition from China’s high-speed rail network, a trend that has diverted passengers from short- and medium-haul routes.
Strategic Shift and Fleet Expansion
Despite losses, Air China is focusing on growing its fleet with plans to incorporate 18 Airbus A320-family aircraft, two Boeing 787s, and ten Comac C919s in 2026. The airline is also pursuing greater integration with high-speed rail services through enhanced air-rail cooperation, aiming to adapt to evolving travel preferences and maintain competitiveness in an increasingly complex transportation landscape.
Overall, these developments reflect a strategic emphasis on fleet modernization and operational resilience amid challenging market conditions.
