Core Insights - Multiple domestic airlines in China have signed agreements with Airbus to purchase a total of 148 A320 series aircraft, indicating strong demand for narrow-body planes in the market [2][5]. Group 1: Aircraft Orders - Air China and its subsidiary signed a purchase agreement for 60 A320neo aircraft, with a total catalog price of approximately $9.53 billion, scheduled for delivery between 2028 and 2032 [3]. - Huaxia Airlines ordered 3 A320 series aircraft, expected to be delivered over three years starting in 2030, pending government approval [3]. - Spring Airlines and Juneyao Airlines announced orders for 30 and 25 A320neo aircraft, respectively, with delivery planned between 2028 and 2032 [3]. - China Aircraft Leasing Company also signed an agreement for 30 A320neo aircraft, with deliveries planned before 2033 [4]. Group 2: Market Trends - Airbus has seen a significant increase in orders from China, with a market share expected to exceed Boeing's, reaching 55% by 2025 [5]. - The demand for narrow-body aircraft is rising, with older models like A320CEO and B737NG decreasing by 10% and 8.4%, while new models A320neo and B737max have surged by 286.3% and 97.9% respectively [8]. - The introduction of wide-body aircraft has stagnated, with only a net increase of 4 aircraft from 2019 to 2025, largely due to slow recovery in international routes [9]. Group 3: Operational Challenges - Airlines are facing operational challenges due to engine shortages, leading to increased grounded aircraft and delayed new deliveries [7]. - The International Air Transport Association reported over 5,000 grounded aircraft, the highest level historically, exacerbated by trade tensions affecting supply chains [7]. - Despite the operational challenges, the current tightness in capacity has somewhat alleviated the oversupply in the domestic market [7].

Core Viewpoint - Delta Air Lines (DAL.N) is removing engines from newly manufactured Airbus A321 NEO aircraft to address an engine shortage in the United States [1] Group 1 - Delta Air Lines has been taking engines off new Airbus A321 NEO planes manufactured in Europe and shipping them back to the United States [1] - The company is not incurring any tariffs on these engine removals [1]