Hainan Airlines sharply narrows first-half losses as costs decline

Beleaguered Hainan Airlines dramatically cut its operating loss for the six months to 30 June, amid a strong uplift in revenue and a reduction in expenses. For the half-year, the carrier, whose parent HNA Group is in the middle of a creditor-led bankruptcy reorganisation, reported an operating loss of CNY3.9b ($604m). This represents a significant reduction compared to the record CNY16.3b loss it reported in 2020. Revenue for the period climbed 56.5% year on year to CNY18.3b, helped by a 63% jump in transportation revenue. Traffic for the half-year grew by 63%, while capacity rose 48% year on year. Hainan also bucked the trend seen by its larger compatriots, and cut its expenses for the period by 6.9% year on year, to CNY23.3b. The carrier reported a net loss of CNY881m, a significant reduction compared to the CNY11.8b net loss it posted in 2020. The HNA Group in early 2021 received a bankruptcy application by its creditors, amid worsening financial strife within the group. Since then, the court approved applications from creditors to place 10 affiliates of Hainan Airlines Holding in bankruptcy reorganisation, including six airlines. It later allowed the merger of 321 HNA Group-linked companies to speed up business restructuring efforts. <br/>