On Friday, China’s three largest state-owned airlines released their 2020 annual earnings forecasts, showing that each company may have a net loss of more than 10 billion yuan due to the severe impact of the Chinese Communist Party virus on the civil aviation industry.
On the evening of Jan. 29, a number of listed Chinese airlines disclosed their 2020 earnings forecasts, in which the three major state-owned airlines reported a total advance loss of more than RMB 30 billion.
Air China Limited (Air China) issued an announcement on its 2020 annual earnings forecast, saying that Air China expects its net loss attributable to shareholders of listed companies to be approximately RMB 13.5 billion to RMB 15.5 billion in 2020. After deducting non-recurring gain or loss matters, the company’s net loss attributable to shareholders of the listed company after deducting non-recurring gain or loss matters will be approximately 13.8 billion yuan to 15.9 billion yuan.
China Eastern Airlines Corporation (OOCL) issued an announcement on its 2020 earnings forecast, saying that OOCL’s net loss attributable to shareholders of the listed company for 2020 will be approximately RMB9.8 billion to RMB12.5 billion. After deducting non-recurring gains and losses, Eastern Airlines’ net loss attributable to shareholders of the listed company in 2020 will be approximately RMB10.7 billion to RMB13.4 billion.
China Southern Airlines Corporation (China Southern) issued an announcement on its annual earnings forecast for 2020, saying that in 2020, China Southern’s net loss attributable to shareholders of the listed company is expected to be RMB 7,907 million to RMB 10,861 million; net loss attributable to shareholders of the listed company after non-recurring gains and losses will be RMB 8,423 million to RMB 11,764 million.
Overall, China’s three largest state-owned airlines are expected to post a combined loss of RMB 31.207 billion to RMB 38.861 billion in 2020; on a daily basis, the three airlines are expected to lose RMB 85 million to RMB 106 million per day.
In addition to the three major airlines, Spring Airlines and Juneyao Airlines also released their pre-loss announcements on the evening of Jan. 29. Among them, Spring Airlines 2020 pre-loss of 538 million yuan to 629 million yuan; Juneyao Airlines is expected to lose 420 million to 490 million yuan in the same period.
In 2020, the CCP virus (Wuhan pneumonia) Epidemic has had a serious impact on civil aviation passenger traffic. Data from the CCP’s Civil Aviation Administration shows that as of November last year, China’s civil aviation passenger traffic dropped 38.2% year-on-year, with domestic and international passenger traffic down 32.1% and 86.1% respectively.
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