China Southern Air Sees First-Half Loss as Yuan WeakensClement Tan
China Southern Airlines Co., the country’s third-largest carrier by market value, estimated a loss in the first half, compared with a profit in the same period last year after the economy slowed and the yuan weakened.
The airline expects to report a loss of 900 million yuan ($145 million) to 1.1 billion yuan in the six months ended June, compared with a 302 million yuan profit in the year-earlier period, according to a statement to the Hong Kong stock exchange.
The company cited slower growth in China’s economy and foreign-exchange losses resulting from a “substantial” weakening of the yuan in the first half for its projected loss. The yuan fell 2.4 percent against the dollar in the first half, the worst-performing currency in Asia, data compiled by Bloomberg show.
China Southern is due to report its first-half results on Aug. 29. Its Hong Kong-traded shares have declined 20 percent this year, compared with a 0.3 percent drop in the benchmark Hang Seng Index.