According to Reuters, China Eastern Airlines is expected to raise up to 15 billion yuan (2.23 billion dollars) in a share sale to expand its aircraft fleet and fund working capital.
The airline will use 10.5 billion yuan (1.56 billion dollars) from the share sale to buy 38 airplanes. These planes will be delivered between 2022 and 2024.
China Eastern Airlines stated its plan in a filing to the Shanghai stock exchange on Tuesday.
The providers for 38 airlines include two major aerospace firms, Airbus and Boeing, among others. The total list price for these planes is about 4.38 billion dollars.
China Eastern Airlines reported a first-quarter net loss of 7.8 billion yuan (1.16 billion dollars) as a result of Covid restriction and an increase in fuel costs.
According to a report by Hong Kong newspaper Mingpao Finance, China Eastern Airlines Corporation Limited reduced over 63% of its capacity in March compared to last year.
China Eastern Airlines, based in Shanghai, reported a net loss of 637.8 million dollars in the fourth quarter, up from 456.6 million dollars in the previous quarter. It booked a full-year loss of 1.9 billion dollars.
In its 2021 annual report, the airline stated that it would closely watch the continuing investigation into the recent crash of its flight MU5735 and examine the impact on its financial and operational outcomes.
In March, the China Eastern Airlines flight MU5735 crashed in the southern province of Guangxi. No one among 132 people on board survived.