China Southern Airlines net profit takes a nose dive
China’s largest carrier by fleet size posted a disappointing 2018 net profit, tumbling by more than a half.
China Southern Airlines’ net profit declined by 51% to $430 million with the company blaming high fuel costs and intense competition.
Weak currency fueled by the US-China trade war also impacted the bottom line.
Revenue rose by 12.38% but that was mostly wiped out due to ballooning operating costs which were up by 21%.
The airline points to increasing competition coming from China’s rapidly expanding high-speed rail network.
This will add to an already highly competitive domestic market where a growing number of low cost carriers are grabbing a bigger share of the spoils.
About 90% of China Southern’s network is domestic routes, and domestic flight bookings generate about three-quarters of the company’s overall revenue.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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