China Southern Airlines renews key financial, lease agreements

China Southern Airlines Company Limited announced the renewal of its Financial Services Framework Agreement and a new 2026-2028 Finance and Lease Service Framework Agreement. The Financial Services Framework Agreement, with China Southern Airlines Group Finance Company Limited, is extended for three years from January 1, 2026, to December 31, 2028. This agreement outlines maximum daily deposit balances of RMB30.0 bn, RMB32.0 bn, and RMB35.0 bn, respectively, for the years ending December 31, 2028. Additionally, maximum daily outstanding loans from the Finance Company for the same period will not exceed RMB30.0 bn, RMB32.0 bn, and RMB35.0 bn.

The new 2026-2028 Finance and Lease Service Framework Agreement with CSA Leasing also runs from January 1, 2026, to December 31, 2028. This agreement encompasses finance lease, operating lease, aircraft-related disposals, and aircraft-related acquisitions. Total rental fees for finance lease transactions are capped at $3,800 m, $4,700 m, and $5,000 m for 2026, 2027, and 2028, respectively. Operating lease total rental fees are set at $3,100 m, $4,500 m, and $3,200 m for the same periods.

The company also released its Third Quarterly Report of 2025, showing continued operational improvement. For the nine months ended September 30, 2025, operating revenue was RMB137,665 m, with a net profit attributable to shareholders of RMB2,307 m, marking a shift from loss to profit compared to the same period last year. Total assets increased to RMB340,579 m as of September 30, 2025, from RMB329,738 m at December 31, 2024.