China Southern Airlines (SHA:600029, HKG:1055) and one of its units agreed to acquire 137 aircraft from Airbus at less than catalogue price, according to a Hong Kong bourse filing Wednesday.
The airline's Hong Kong shares fell nearly 3% in late morning trade Thursday.
The company agreed to purchase 102 A320NEO aircraft, while Xiamen Airlines, a 55%-owned subsidiary, placed an order for a further 35 A320NEO planes.
The catalogue price for the planes range from $133 million to $170 million, equating to a total purchase price of $21.38 billion.
However, the aggregate actual consideration "is lower than the catalogue price as provided [..] because of the price concessions granted by Airbus," China Southern Airlines said.
Plane deliveries will begin from 2028 and last until 2032, the airline said.