Too bad! Huge loss of $37 billion, what happened to these 3 companies? The annual loss king has just emerged!
Just now, the annual loss king has emerged!
On the evening of March 30, the 2020 annual results of three “national” airlines showed up. Air China’s 2020 net profit loss of 14.41 billion yuan; Southern Airlines’ 2020 loss of 10.842 billion yuan; Eastern Airlines’ 2020 loss of 11.8 billion yuan. The three airlines have a total loss of more than 37 billion yuan, which is the annual loss king in the A-share market so far.
37 billion huge losses
According to Air China’s annual report, in 2020, the Epidemic caused a huge impact on the global aviation industry. The aviation industry, especially international air transport, has always been on the front line of the epidemic’s impact, with global air traffic plummeting, airline aircraft grounding, massive layoffs, operating capital shortages and large-scale bankruptcy restructuring, leading to a multiplication of operating pressures on airline industry chain companies.
Under such circumstances, China’s three major airlines, without exception, suffered significant losses. Air China has a net profit loss of 14.41 billion yuan in 2020; China Southern Airlines has a loss of 10.842 billion yuan in 2020; and China Eastern Airlines has a loss of 11.8 billion yuan in 2020. The three airlines have a total loss of more than 37 billion yuan, making them the annual loss kings in the A-share market up to now.
According to the statistics of the Big Blue Hole of Civil Aviation, Air China Group’s fixed costs, such as aircraft depreciation, management expenses and finance costs, are about 101 million yuan per day. China Southern Airlines Group’s fixed costs are about 135 million Yuan/day. The fixed cost of China Eastern Airlines Group is about 0.83 billion yuan/day. And these fixed expenses account for 50% of the operating costs of airlines. You can see how miserable the asset-heavy industry will be under the epidemic.