Steep impairment costs drag troubled Hainan Airlines to record full-year loss

Troubled Hainan Airlines reported a record operating loss for the year ended 31 December, as heavy impairment costs and a steep decline in revenue punished its earnings. The carrier was CNY71.6b ($11b) in the red for the year, reversing the modest CNY798m operating profit it reported in 2019. Hainan, whose parent HNA Group is in the middle of a creditor-led bankruptcy reorganisation, saw its full-year revenue plunge nearly 60% year on year to CNY29.4b, due largely to a collapse in travel demand from the coronavirus pandemic. Costs, meanwhile, fell just 34% year on year to CNY50.7b. The carrier took on a hefty impairment charge — at nearly CNY30b — according to a Shanghai Stock Exchange disclosure dated 30 April. This was due to its dealings with its troubled parent and its sister companies. Hainan also reported a record net loss of CNY64b for the year, reversing the CNY519m net profit in 2019. <br/>