Hainan Airlines slumps by close to daily limit in Shanghai after it warns of a loss of as much as US$10.06 billion
- Hainan Airlines Holding sheds as much as 9.8 per cent in Shanghai, approaching the daily cap of 10 per cent
- Other HNA Group entities also fall after parent’s bankruptcy restructuring
The Shanghai-listed firm finished the day 9.8 per cent lower at 1.38 yuan, close to the daily cap of 10 per cent.
The largest private airline in China said in an exchange filing on Saturday that its projected loss for 2020 could reach between 58 billion yuan (US$8.98 billion) and 65 billion yuan, more than the combined losses at Air China, China Eastern Airlines and China Southern Airlines – the nation’s top three carriers.
Stock filings showed Air China’s loss could be in the region of 13.5 billion yuan to 15.5 billion yuan, while China Eastern Airlines loss for 2020 could range between 9.8 billion yuan and 12.5 billion yuan China Southern Airlines forecast losses of 7.9 billion yuan to 10.9 billion yuan.
Hainan Airlines said that the loss will result in a negative value of net assets and it risks being delisted after the results are released.
