MIAMI – Air China (CA) recently reported a loss of US$1.5bn between January 1 and June 30, 2020. The airlines reported a profit of US$500m and revenue of US$9.7bn during the same period for 2019.
Air China attributes the losses to COVID-19, which it stated caused “negative impacts to the global economy, business environment, and directly and indirectly the operations of the Group.”
With the pandemic came a cessation of traveling after the bustling Chinese New Year along with international border closures and thus a severe drop in passenger numbers. As a result, Revenue from Mainland China passengers fell by US$3.5bn and by US$1.4bn from international travelers.
Positive Future for Air China
Air China claims a three-pronged approach with a focus on preventing future pandemic spread. CA is providing customers confidence in terms of health and safety and scaling back operations to help improve its financial performance.
We can remember back in 2018 when CA took delivery of its first A350 XWB in Toulouse, becoming China’s first customer to receive the twin-engine widebody aircraft. The following year, the carrier made almost US$10bn in revenue, as stated above.
Now, if CA makes a positive turnaround or moves significantly towards one in the second half of 2020, perhaps other airlines in Asia and around the world can follow suit.
Featured Image: Air China Boeing 737-700 Photo: Wiki Commons.