China Southern Airlines Net Loss Widened by 12% in 2021
By Ronnie Harui
China Southern Airlines' net loss widened by 12% in 2021, partly owing to higher operating expenses.
Its net loss increased to 12.106 billion yuan ($1.907 billion) in 2021 from a net loss of CNY10.847 billion in 2020, the airlines said in a Hong Kong exchange filing late Wednesday. Its total operating revenue rose to CNY101.644 billion in 2021 from CNY92.561 billion in 2020.
Among its initiatives for 2022, China Southern Airlines will spare no effort to improve its business performance, establish a long-term mechanism for cost control and enhance its ability to resist risks as well as improve operation quality and build a first-class brand service system, the company said.
Due to reasons including obsolescence of aircraft and discontinuation of models, China Southern Airlines made a provision for impairment of aircraft, spare engines, aviation equipment and long-term deferred expenses for 2021, it said in a separate Hong Kong exchange filing late Wednesday. The provision for impairment of aircraft, spare engines and aviation equipment totaled CNY2.596 billion, and the provision for impairment of long-term deferred expenses totaled CNY18 million, it added.
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(END) Dow Jones Newswires
March 30, 2022 21:24 ET (01:24 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.