By Martin Mou
China Southern Airlines Co. said Tuesday that it expects the Covid-19 pandemic to severely hurt its results for the first three quarters of the year.
Facing “unprecedented difficulties” brought about by the pandemic, the company has made efforts to control costs and seek policy support while boosting cargo revenue to weather the downturn, China Southern said.
The state-owned carrier swung to a net loss in the first half, as the pandemic crimped demand for air travel.
China Southern’s passenger traffic by revenue passenger kilometers fell 28% from a year earlier last month, but that for domestic routes resumed growth, rising 1.6% as air travel recovers in China.
Meanwhile, China Southern is looking to the capital markets to get a lifeline. It said separately on Tuesday that it plans to issue short-term bonds of up to 10 billion yuan ($1.48 billion).
The bond program adds to another plan to raise CNY16 billion via convertible A-share bonds, which the company announced earlier this week.
Write to Martin Mou at [email protected]
(END) Dow Jones Newswires
October 13, 2020 05:36 ET (09:36 GMT)
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