18 Sep 2025
#3 September 2025: China Aviation Industry Newsletter
AerDragon Purchases Two A320neo Aircraft on Lease to Avianca
AerDragon has acquired two Airbus A320neo aircraft from Vmo Aircraft Leasing. The aircraft are currently placed on lease with Avianca, one of Latin America’s largest carriers. The transaction marks a continued expansion of AerDragon’s leasing portfolio and customer base.
Gang Li, Chief Executive Officer of AerDragon, commented:
“We are pleased to add Avianca to our expanding list of customers and continue supporting its fleet development. Avianca has a long history of success and Latin America is a growing aviation market with significant potential. We look forward to providing further support for many years to come.”
CAAC Reports 147 Million Passengers During Summer Season, Setting New Records
The Civil Aviation Administration of China (CAAC) announced that China’s civil aviation sector transported 147 million passengers between July 1 and August 31, 2025, averaging 2.37 million passengers per day. This marks a 3.6% year-on-year increase. Flight volumes also rose to 1.199 million, averaging 19,300 daily flights.
The peak day was August 15, with 2.565 million passengers—the highest ever recorded in China’s aviation history.
Flight punctuality improved significantly, with the on-time performance reaching 84%, up 6.7 percentage points over the same period in 2024. The passenger load factor reached 84.8%, rising by 2.2 percentage points year-on-year.
International traffic surged as well: from January to August 2025, international flights increased more than 20% year-on-year. During the summer season, Chinese and foreign airlines operated 123,000 international flights, with peak activity in early August reaching 2,100 daily flights—93% of pre-pandemic levels.
China Southern Airlines and Qatar Airways Expand Codeshare and Frequencies
China Southern Airlines and Qatar Airways have announced a major expansion of their strategic partnership ahead of China’s Golden Week holiday. Beginning 16 October 2025, Qatar Airways will place its code on China Southern’s three weekly flights between Beijing Daxing and Doha.
Simultaneously, China Southern will add its CZ code on 15 Qatar Airways-operated routes beyond Doha, covering destinations across Europe, the Middle East, and Africa—including Amman, Barcelona, Cairo, Madrid, and Munich.
Han Wensheng, President & CEO of China Southern Airlines, stated:
“Beijing Daxing is a cornerstone of our international development. The launch of new Doha services and our enhanced codeshare with Qatar Airways provide greater access for our customers across four continents through Hamad International Airport. This partnership demonstrates our commitment to offering global connectivity and superior service.”
Acumen’s Take
On AerDragon’s Acquisition of A320neo Aircraft
AerDragon’s deal with Vmo highlights the lessor’s growing presence in the Americas and its focus on newer, in-demand narrowbody assets. Placing these aircraft with Avianca adds a blue-chip customer to its roster and underscores the attractiveness of the A320neo platform in Latin America’s ULCC segment.
On CAAC’s Summer Traffic Report
The summer surge solidifies China’s post-pandemic recovery, with both domestic and international travel bouncing back. Improved load factors and on-time performance reflect better resource planning by carriers and regulators. The nearing return to pre-COVID international frequencies is especially significant, as it sets the stage for renewed global competition and connectivity.
On China Southern–Qatar Airways Partnership Expansion
This deepening partnership is emblematic of China’s broader ambition to turn Daxing into a global aviation hub. The expanded codeshare network provides added reach for both airlines, while the timing ahead of Golden Week leverages peak demand. Strategically, it strengthens Qatar Airways’ position in East Asia and enhances China Southern’s international footprint beyond Guangzhou.
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