China Southern orders $3.6B in Boeing freighters

Boeing The Boeing Company ↗ 3.62% secured an order for seven freighter aircraft from China Southern Air Logistics Company Limited, the cargo subsidiary of China Southern Airlines, in a deal valued at approximately $3.62 billion at list prices, according to a company filing disclosed on Friday.tipranks+1

The agreement includes two 777F aircraft and five of Boeing's next-generation 777-8F freighters, along with options to purchase three additional 777-8F planes. If the options are exercised, the total list price would rise to approximately $5.24 billion.investing

A Foothold in a Contested Market

The order marks a notable step for Boeing as it works to rebuild its position in China's aviation market. China once accounted for about 25% of Boeing's order book, but that share had fallen to roughly 2% — just 133 orders from Chinese airlines — as geopolitical tensions, the 737 Max grounding, and trade disputes took their toll. In April 2025, Beijing ordered Chinese airlines to halt Boeing deliveries as part of a broader trade war with the United States.virginiabusiness+1

Relations began to thaw in early 2026. In March, Bloomberg reported that Boeing was nearing a deal for up to 500 737 Max jets to be announced around a Trump-Xi summit. By May, President Donald Trump announced that China had agreed to purchase 200 Boeing planes, the country's first major order from the manufacturer in nearly a decade.bloomberg+1

Expanding Cargo Capacity

The freighter order was placed through CSA Cargo, in which China Southern holds a 55% stake. The transaction still requires approval from the company's shareholders and relevant Chinese state authorities before it takes effect.tipranks+1

China Southern Air Logistics has been actively expanding its cargo operations. In early June, the company signed a strategic memorandum of understanding with FedEx ↘ 0.28% covering cargo space sharing, route coordination, and fleet resources. The 777-8F, which Boeing launched in 2022, is designed to carry a maximum structural payload of 130 tons with a 25% improvement in fuel efficiency over older freighter models. The aircraft is expected to enter service around 2028.seattletimes+2