China Southern Airlines has officially called off the sale of ten Boeing 787-8 aircraft, a transaction initially planned through the Shanghai United Assets and Equity Exchange (SUAEE). The move comes in response to a combination of shifting market conditions and the intensifying trade conflict between China and the United States, which has led to disruptions in aircraft deliveries and the broader aviation industry.

Temporary Hold on Aircraft Sale

In filings with the SUAEE, China Southern revealed that the sale of the ten Boeing 787-8s has been temporarily suspended, with no further action expected until at least May 12. The airline has left the door open for the sale to be reconsidered, should favorable market conditions arise. The aircraft in question, delivered by Boeing between 2013 and 2014, are registered under the tail numbers B-2725, B-2726, B-2733, B-2737, B-2735, B-2787, B-2788, B-2732, B-2736, and B-2727, and are powered by GE Aerospace GEnx engines.

While China Southern is the primary operator of these specific 787-8s, other Chinese airlines also maintain fleets of this model. However, the airline has been scaling back its operations with the 787-8s, with weekly departures significantly decreasing from a peak of 182 flights in January 2025 to just 71 by October 2024, according to data from Cirium’s Diio Mi tool.

Geopolitical Factors Shaping Fleet Decisions

Although the airline has not publicly stated the reasons for the sale cancellation, the timing coincides with ongoing trade tensions between China and the United States. As part of the broader trade dispute, China has imposed heavy tariffs on US-made goods, including Boeing aircraft, which has resulted in restrictions on the delivery of new planes to Chinese carriers. These trade barriers are likely influencing China Southern’s decision to suspend the sale of its 787-8s, as it adjusts its fleet strategy in response to the shifting geopolitical landscape.

As of March 2024, China Southern’s fleet comprised 932 aircraft, including 41 Boeing 787s. This total includes both the ten 787-8s in question and 19 additional 787-9s. The airline has also added several new aircraft to its fleet in recent months, such as Airbus A320neo, A321neo, and Boeing 737 MAX 8 models, while retiring older planes like the 737-700 and A330-200.

Boeing Faces Challenges in China

The suspension of the 787-8 sale is part of a broader struggle for Boeing as it faces difficulties in fulfilling its commitments to Chinese airlines. According to recent industry records, Boeing has a large inventory of aircraft meant for Chinese carriers, including 32 737 MAX 8s and three 787-9s. However, trade restrictions have delayed the delivery of these planes, further complicating Boeing’s relationships with Chinese clients.

With ongoing trade tensions continuing to shape the global aviation landscape, China Southern’s decision to pause the sale of its 787-8s underscores the significant impact of geopolitical factors on airline fleet strategies. Whether the sale will ultimately proceed remains uncertain, depending on the evolution of trade relations and market conditions in the months ahead.