Aviation
Commercial /
China
Not over yet
Air China and China Southern have difficulties and losses because of Covid-19
Boeing 737-800
Air China
GFDL 1.2, via wikimedia commons
Rafael Ramos
10/30/2022
China's biggest airlines reported severe financial losses during the third quarter of the year because of ongoing COVID-19 restrictions. the weakening of the Chinese currency and rising fuel prices inflated the costs of Chinese airlines.
Air China, one of the major Chinese airlines, has a fleet composed mostly of widebody aircraft. Most of China's international routes are blocked in some way, which explains part of the losses. The airline reported a loss of about $1.2 billion in the third quarter alone. The combined losses in the first three quarters amount to .6 billion dollars.
The numbers are quite disheartening for the airline, which has already recorded a loss of profits of more than 10 billion dollars since 2020. The debt of 9.7 billion dollars is also higher than the number at the end of 2019.
China Southern Airlines also reported profit losses of US$2.4 billion in the first three quarters of 2022. The company has the largest fleet in China, however, the results were influenced by the same factor.
As of press time, China's third largest airline, China Eastern Airlines, has yet to publish its results.
According to the Civil Aviation Administration of China (CAAC), the amount of international flights is expected to grow a lot in the coming season, compared to the year 2021. However, there are still no signs of relaxation of the current quarantine policy for travelers visiting the country. country.
Boeing 787-9 Dreamliner
China Southern Airlines
CC BY-SA 4.0, via wikimedia commons
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Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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