Airlines flying into US$39b loss, warns IataBusiness | Winnie Lee 2 Apr 2020
The airline industry could suffer a loss of US$39 billion (HK$304.2 billion) in the second quarter this year with an estimation that both riding and revenue would plunge by 70 percent from a year ago, the International Air Transport Association has warned.
The trade group said global airlines are expected to burn through US$61 billion in cash reserves. It previously predicted projected a full-year revenue decline of US$252 billion for the industry.
Meanwhile, Air China (0753) posted a 12.7 percent drop in its net profit last year, which amounted to 6.42 billion yuan (HK$6.99 billion). Its annual revenue fell 0.4 percent over 2018.
And China Southern Airlines (1055) said its net profit also fell 9 percent year-on-year to 2.64 billion yuan with revenue tonne kilometers for the first two months dropping 37 percent as compared to the same period of 2019.