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Air China announces first half loss could reach US$3.1 billion
July 18th 2022
Air China expects to post a loss of 18.5 billion yuan to 21 billion yuan (US$2.7 billion to US$3.1 billion) for the six months to June 30 following fresh outbreaks of COVID-19 which are hampering domestic demand. Read More » Additionally, international travel remains highly restricted as a result of China’s zero-COVID policies. The forecast loss has been disclosed in a regulatory filing to the Stock Exchange of Hong Kong. The interim numbers compare with a net loss of 6.8 billion yuan in the same months in 2021. “In the first half of 2022, the global civil aviation industry, as a whole, remained in a loss-making situation due to the continued impact of the COVID-19 pandemic,” Air China said. “Especially, as a sporadic outbreak of the pandemic occurred in China this year. It led to a significant reduction in capacity input in domestic routes and capacity input of international routes continued to be limited.” China’s flag carrier said rising oil prices and exchange rate fluctuations had “further intensified the difficulty of improving the company’s operations”.
