China’s three largest, state-owned airlines have reiterated earlier warnings of their first-half financial results taking a hit from the coronavirus outbreak.
China Eastern and China Southern issued a warning that their 2020 first-half results will be “materially and adversely” impacted by the crisis resulting from the coronavirus outbreak. Air China says the impact on its results is “significant”. All three carriers posted significant operating losses when 2020’s first quarter ended by late March, with the pandemic ever growing in immensity.
The coronavirus pandemic started in China, which then became subject to an expanding list of global travel bans. China’s “Big Three” are taking measures to try to soften the financial impact of global travel restrictions and lower-than-ever flying demand. This includes redeploying capacity, reducing overall costs and increasing passenger and freight revenue.
In June, Chinese carriers have seen an increase in travelling passengers. Air China carried 4.46 million passengers. This is a 9.5 percent increase compared to May, but a 51.5 percent year-on-year decline. Meanwhile, China Southern flew about 7.14 million passengers last month, totalling a 21.6 percent increase to May, but a 41 percent year-on-year decline. As for China Eastern, it carried 5.2 million passengers, no less than a 25 percent increase compared to May. Yet, compared to 2019, the year-on-year decline amounts to 51 percent.