Juneyao latest Chinese carrier to suffer losses in 2020

Juneyao Air was loss-making in 2020, much like its larger, state-owned compatriots, which have also saw their profitability punished by the impact of the coronavirus outbreak. In its full-year results, the Shanghai-based airline swung to an operating loss of CNY749m ($115m). This compares to the CNY1.29b operating profit it reported in 2019. As with other carriers in the country, a collapse in passenger travel demand — particularly in the first half of the year — meant that revenue declines outpaced a reduced costs. Juneyao disclosed a near-40% year-on-year drop in revenue, at CNY10.1b. Costs, meanwhile, saw a 27% decline year on year, to CNY11.6b. The carrier reported a net loss of CNY474m, reversing 2019’s net profit of CNY994m. Juneyao had earlier forecast a full-year loss excluding non-recurring items for 2020 of CNY420-490m, with the projection increased to CNY580-660m with non-recurring items included. Despite swinging to a full-year loss, Juneyao says it is optimistic of domestic prospects, even though it was not of the same size as its larger competitors. <br/>