Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

China's top airlines post wider losses on COVID-19 resurgence

Stock MarketsOct 29, 2021 10:25AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: A China Southern Airlines Airbus A380-800 plane takes off from Sydney Airport in Sydney, Australia, October 28, 2020. REUTERS/Loren Elliott/File Photo

By Stella Qiu and Jamie Freed

BEIJING/SYDNEY (Reuters) - China's three biggest airlines on Friday posted wider third-quarter losses than in the previous quarter as a resurgence of local COVID-19 cases drove a sharp decline in domestic travel and international borders remained closed.

The losses highlighted one of the consequences of the country's policy of seeking to eliminate COVID-19 within its borders. Each time there is an outbreak, flight numbers fall sharply before rebounding once cases are controlled.

The fourth quarter is facing similar though so far less severe issues. This week's scheduled airline capacity in China is 4.8% lower than last week because of minor outbreaks, according to data firm OAG.

Beijing-based Air China (OTC:AIRYY) Ltd, the country's flagship carrier, said its net loss attributable to shareholders rose to 3.5 billion yuan ($547 million) in the third quarter from 578 million yuan in the second quarter, taking the nine-month net loss to 10.3 billion yuan.

China Eastern Airlines (NYSE:CEA) saw its net loss grow to 3.0 billion yuan from 1.4 billion yuan in the second quarter. The total loss to shareholders amounted to 8.2 billion yuan in the first three quarters.

China Southern Airlines widened its loss to 1.4 billion yuan from 682 million yuan in the second quarter for a nine-month total shortfall of 6.1 billion yuan.

The Guangzhou-based carrier said it aims to replenish its capital by raising up to 4.5 billion yuan via A-share private placement and HK$1.8 billion via H-share private placement.

A resurgence of COVID-19 cases since late July involving local airports and tour groups has been a substantial setback to the domestic travel market.

China's air passenger traffic dropped 51.5% in August from a year ago, before recovering to a decline of 24.7% in September, official data showed. The Civil Aviation Administration of China (CAAC) has said it is studying more measures to help airlines financially.

The lacklustre state of the travel market has also led some Chinese airlines to roll out "all you can fly" promotional deals in the past few weeks to stimulate demand.

With the Chinese market tepid, there appears to be little urgency for the CAAC to certify Boeing (NYSE:BA) 737 MAX planes, which it grounded more than two years ago over two fatal crashes.

Sources told Reuters that chances are growing that Chinese certification will slip to next year.

Boeing executives said in an earnings call on Wednesday that a third of about 370 undelivered MAX airplanes in storage are for Chinese customers and that the company hopes to resume deliveries in China in the first quarter of next year.

Airbus Chief Executive Guillaume Faury said on Thursday there had been "ups and downs" in deliveries to China depending on the country's COVID-19 situation and willingness of customers to travel to pick up their planes.

"We've had some challenges in September from that perspective," he told analysts.

($1 = 6.3963 Chinese yuan renminbi)

China's top airlines post wider losses on COVID-19 resurgence

Related Articles

Daimler AG to rebrand as Mercedes-Benz on Feb. 1
Daimler AG to rebrand as Mercedes-Benz on Feb. 1 By Reuters - Jan 28, 2022

BERLIN (Reuters) - Daimler AG (DE:DAIGn) will be formally renamed Mercedes-Benz Group AG on Saturday - nearly a year after the spin-off of its truck and bus division was...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email