News
China’s “Big Three” airlines warn of interim losses
July 12th 2024
China’s biggest state-owned airline groups have informed regulators they will be in the red for the first six months of the year. Read More »
China Southern Airlines (CSA) has forecast an interim net loss ranging from RMB1.06 billion (US$146 million) to RMB1.58 billion. The result, after deducting non-recurring profit or loss attributable to shareholders, is estimated to be RMB3.15 billion to RMB3.98 billion. CSA said domestic market oversupply, challenges in the recovery of the international market, frequent extreme weather and a fluctuating oil price have taken a toll on its bottom line. China Eastern Airlines (CEA) said its shareholders should expect a first half net loss of RMB2.4 billion to RMB2.9 billion. The Shanghai-headquartered said international markets such as North America and Japan had not fully recovered as a result of local restrictions on air traffic rights and slots and insufficient airport supporting resources on certain routes. Additionally, intensified competition in the domestic market and persistently high fuel prices had eroded revenue.
Air China too, forecasts it will report a net loss from January 1 to June 30 of RMB2.3 billion to RMB3 billion. “The company has seen a steady improvement in operating performance in the first half of the year, achieving significantly reduced losses compared with the same months last year. However, due to a slower than expected recovery on international routes, intensified domestic market competition and oil price and exchange rate fluctuations, Air China has recorded operating losses in the first half of the year,” Air China said in a stock exchange filling.
