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China Eastern Airlines to raise up to $2.2 billion through A-Share sale -Breaking


© Reuters. FILE PHOTO – The logo for China Eastern Airlines can be seen at Beijing Capital International Airport, Beijing, China on March 21st 2022. REUTERS/Tingshu Wang

HONG KONG (Reuters) – China Eastern Airlines Corp (NYSE:) Corp plans a sale of shares to increase its fleet size and replenish working capital.

It stated in the filing that the Chinese airline will spend 10.5 billion yuan on the shares sale proceeds to purchase 38 aircrafts, which it expects to deliver between 2022-2024.

These 38 planes comprise four C919s and 24 ARJ21700s. Six Airbus A350-900s are also included. Four Boeing (NYSE.) 787-9 is the fourth.

According to the filing, the remaining 4.5 billion Yuan of the share sale will be used to increase the airline’s working capital.

China Eastern Air Holding Company Limited is the controlling shareholder. According to the plan, they would invest at minimum 5.0 billion yuan into the share sale.

A significant rise in jet fuel cost and COVID-19 had caused a loss of net 7.8 billion Yuan by the airline’s first quarter.

($1 = 6.7215 renminbi)