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China’s “Big Three” carriers post wider losses
November 1st 2021
China’s zero-COVID strategy has resulted in its three biggest airlines reporting increased losses. Read More » Guangzhou’s China Southern Airlines (CSA) posted a loss for the quarter of 1.4 billion yuan (US$218.5 milliion), up from 682 million yuan in the second quarter. The year-to-date loss was 6.1 billion yuan. CSA’s board has agreed to put to an extraordinary general meeting (EGM) of shareholders a proposal to raise to 4.5 billion yuan via a proposed A-share issuance. It also proposed adding HK$1.8 billion to general working capital by issuing H shares. Beijing-based Air China said its net loss attributable to shareholders was 3.5 billion yuan (US$547 million) in the third quarter, up from 578 million yuan in the previous three months. Losses for the first nine months of its fiscal year were 10.3 billion yuan. The red ink at Shanghai’s China Eastern Airlines increased to 3 billion yuan. from 1.4 billion yuan in the second quarter, to bring nine month losses to 8.2 billion yuan. All three airlines pointed to COVID-19 outbreaks as a primary factor in their negative results, although Air China said the rising price of aviation fuel and exchange rate fluctuations also were factors.
