Edwin Leong
The firms mainly attribute the losses to increasing jet fuel costs, resulting from the US-Iran conflict and interruptions in oil product supplies.
China Southern Airlines is anticipated to experience the highest losses, projected to be between $730 million and $804 million in the second quarter. "China Southern noted that in early March, the geopolitical climate caused significant volatility in jet fuel prices, placing immense strain on the industry as a whole."
The company highlighted that it "reacted swiftly and adjusted to the changes," yet anticipates a net loss "because of objective factors, like the difficult global landscape."
Parash Jain, head transport analyst at HSBC, anticipates a "challenging beginning" to the third quarter for China's Big Three airlines and believes losses "are expected to persist." Due to the drop in passenger traffic, which is also associated with increasing fuel costs, "we observe restricted potential for profit recovery in the short term," the analyst asserts.
source: asia.nikkei.com
China Southern Airlines is anticipated to experience the highest losses, projected to be between $730 million and $804 million in the second quarter. "China Southern noted that in early March, the geopolitical climate caused significant volatility in jet fuel prices, placing immense strain on the industry as a whole."
The company highlighted that it "reacted swiftly and adjusted to the changes," yet anticipates a net loss "because of objective factors, like the difficult global landscape."
Parash Jain, head transport analyst at HSBC, anticipates a "challenging beginning" to the third quarter for China's Big Three airlines and believes losses "are expected to persist." Due to the drop in passenger traffic, which is also associated with increasing fuel costs, "we observe restricted potential for profit recovery in the short term," the analyst asserts.
source: asia.nikkei.com