Just Earth News | @justearthnews | 03 May 2021, 03:58 pm Print
Hainan Airlines Image: Wikimedia Commons
Beijing: Hainan Airlines Holding, the aviation unit of debt-laden Chinese conglomerate HNA Group, is facing the heat of COVID-19 outbreak as it posted the biggest-ever annual loss among listed Chinese companies recently, media reports said.
Hit by the outbreak of Covid-19 and provisions for asset losses linked to a restructuring at its parent firm, the Haikou-based carrier reported a loss of 64 billion yuan (US$9.9 billion) for 2020, or 3.83 yuan per share, it said in an exchange statement on Friday.
And the airline continues to be unprofitable this year too – it reported a first-quarter loss of 2.6 billion yuan in a separate filing, reports The Star.
While the epidemic has paralysed the aviation industry by deterring travellers and grounding flights, HNA’s business restructuring has also added to Hainan Airlines’ financial woes, the newspaper reported.
The listed unit made provisions estimated at 30 billion yuan for deposits placed with its parent company, account receivables with affiliated parties and financial guarantees, according to its annual report. It also incurred investment losses totalling about 22 billion yuan from asset classes ranging from trust products and equities to properties, the report added.
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