Loong Air Seeks $280 Million Shanghai IPO Amid High Debt and Fleet Expansion

China’s Zhejiang Loong Airlines is seeking to raise approximately CNY2 billion ($280 million) through an initial public offering on the Shanghai Stock Exchange, with proceeds allocated to Airbus A320 Family aircraft, spare engines and working capital.

The Hangzhou-based carrier filed its prospectus in June 2026 and recently updated its responses to regulatory inquiries. Huatai United Securities is sponsoring the proposed listing.

Loong Air operates 77 Airbus A320 Family aircraft, including eight owned aircraft and 69 under finance or operating leases. At the end of 2025, total liabilities stood at approximately CNY28.04 billion ($3.9 billion), with a debt-to-asset ratio of 89.92%.

Revenue increased from CNY9.01 billion in 2023 to CNY10.65 billion ($1.5 billion) in 2025, while net profit rose from CNY171 million to CNY692 million. Passenger operations account for approximately 99% of revenue, with smaller contributions from cargo and aviation-related services.

The airline’s core operating gross margin declined from 9.73% in 2024 to 8.35% in 2025, reflecting lower passenger yields and higher engine maintenance expenses. Aviation fuel remains its largest operating expense.

Loong Air also generated approximately CNY980 million in 2025 from routes operated under agreements with local governments and airports, exposing the carrier to changes in regional financial support.

Founded in 2011, Loong Air operates from Hangzhou Xiaoshan International Airport, serving domestic and international destinations across Asia. Chairman Liu Qihong controls approximately 50.11% of the company ahead of the proposed offering.