China’s Top Airlines Post Steep Q2 Losses On COVID Curbs

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China’s three biggest airlines posted a combined 28.4 billion yuan ($4.12 billion) second-quarter loss. Wider than in the first quarter, due to major travel disruptions including a strict COVID-related lockdown in Shanghai.

The country’s policy of localised lockdowns in response to case numbers has forced carriers to frequently press the stop button on domestic travel; the main driver for revenue amid border policies that have all but grounded international travel.

Shanghai-based China Eastern Airlines (600115.SS), said its net loss reached 10.9 billion yuan, and the highest among the three, due to lockdowns in its city.

China’s financial hub began ordering its 25 million residents to stay at home in late March. Resulting in the cancellations of almost all domestic flights from the city’s two airports throughout April.

Reuters.

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