Three airlines – Air China, China Southern Airlines and China Eastern Airlines – have predicted a loss for 2020, and the total loss could reach more than 30 billion yuan ($4.67 billion), as a result of the pandemic.
China Eastern predicted its net profit attributable to shareholders is expected to be a loss of 9.8 to 12.5 billion yuan in 2020. In comparison, the net profit was 3.195 billion yuan in 2019.
China Southern, the country’s largest carrier by passenger numbers said the loss will be 7.907 to 10.861 billion yuan in 2020, while the net profit attributable to shareholders was 2.65 billion yuan.
Air China said its loss of net profit attributable to shareholders could be 13.5 to 15.5 billion yuan in 2020, while the net profit in 2019 was 6.41 billion yuan.
All the three giants attribute the loss to the impact brought by the epidemic, for market demand and passengers’ willingness to travel have dropped significantly.
China Southern said its flying capacity of international routes decreased by 80.63 percent, and the revenue passenger kilometer decreased by 84.88 percent.
Sporadic COVID-19 cases in China have triggered a new round of protective measures, as Chinese governments both at the national and local level are encouraging residents to stay at the place for the Chinese New Year holidays.
The Chinese New Year period, which was supposed to be the peak season for airlines, may dampen the airlines’ hopes for turning a profit, and cast another shadow over their yearly performance.
Photo: Courtesy of Air China
