China Eastern Airlines says it will buy 60 Airbus A320 aircraft in a deal worth $US5.39 billion to meet domestic travel demand.
In a statement to the Hong Kong stock exchange on Friday, the airline said the new planes will be delivered in stages from 2014 - 2017.
"The purchase of the Airbus aircraft will further strengthen the company's competitiveness in the domestic civil aviation market and increase its operational capacity in domestic routes of the company," the statement said.
The airline, which is based in Shanghai, said the purchase will be funded through bank loans.
AFP reports China Eastern Airlines is one of the three major carriers in China.