Air China widens its losses by 15.5% to US$ 2.62 billion
Air China widened its losses in 2021 by 15.5% year-on-year to 16,635 million yuan (2,620 million dollars) due to continued travel restrictions in the context of the covid-19 pandemic.
In its income statement, submitted last night to the Hong Kong Stock Exchange, where it is listed, the company says that its situation is not unique, as the pandemic has caused “airlines around the world to suffer operational difficulties attributable to a cash shortfall”.
→ Second black box recovered from plane crashed in China.
However, in 2019, the last year before the pandemic, the company had already reduced its net profit by 12.7% year-on-year due to competition on its routes with Europe and North America, EFE reported.
In 2021, the group’s total turnover rebounded by 7.2 % to 74.532 billion yuan (US$11.739 billion, €10.513 billion), although it should be recalled that the previous year it had fallen by 49 %.
Air China carried more than 69 million passengers last year, up 0.5% from 2020 but still almost 40% less than in the last fiscal year before the pandemic.
SLUMP IN INTERNATIONAL FLIGHTS
This significant decrease comes mainly from international routes, where it had only about 301,000 passengers, while in 2020 it had had 2.24 million: this represents a reduction of 86.6 % year-on-year, and one of 98.2 % if compared to the 2019 figure.
Mainland Chinese travelers accounted for 98.5% of the total and, in contrast to international travelers, were up 3.3% year-on-year in 2021.
→ Akasa Air plans first commercial flight in June.
China has kept its borders virtually closed for the past two years, a period in which it has limited international air traffic to about 2% of what it was before the pandemic, resulting in a significant increase in ticket prices, which can now cost up to eleven times as much.
Meanwhile, Air China’s cargo business is going from strength to strength, well above pre-pandemic levels; in 2021 it increased its revenue by 29.9% year-on-year to 11.113 billion yuan ($1.75 billion), up nearly 94% from 2019.
The airline’s operating expenses rose 12.3 % to 95.465 billion yuan ($15.036 billion), mainly due to a spike in fuel costs.
Looking ahead to 2022, Air China expects competition in the global aviation sector to remain, but less so in the domestic sector, where it expects further economic recovery, which would bring “strong demand” for air travel and thus “great market potential.”
Photo: Anna Zvereva/Wikimedia
Related Topics
LATAM Implements Technology Capable of Reducing Delays and Cancellations by Up to 20%
GOL to Resume Flights Between Sao Paulo and Caracas After 9 Years
LATAM Announces New Direct Route Between Lima and Florianópolis
GOL Inaugurates New Direct Route Between Recife and Cordoba
Plataforma Informativa de Aviación Comercial líder en América Latina.