Hainan Airlines says that it expects to return to profitability for 2019 following last year’s worrying loss. The airline says that it will report a profit for the period ending December 31, 2019. The carrier estimates it's net-profit between CNY450 million ($65.1 million) and CNY 675 million ($97.7 million).
Unfortunately, when taking into account non-recurring items, Hainan Airlines plunges to a net-loss. The airline estimates a net-loss of CNY1.6 billion to CNY2.2 billion.
This comes as a very positive development for Hainan Airlines after having reported a CNY 3.6 billion net loss for the year ending 31 December 2018.
The carrier is expected to reveal it's financial results for 2019 later this year, in March.
Things at Hainan Airlines haven't been easy lately. The airline has had to cut routes and an organisational restructure took place ; subsidiary Tianjin Airlines, was transferred to Hainan Airlines’ parent company, the HNA Group. Just last week, Hainan Airlines ended flights between Beijing and Las Vegas.
Hainan Airlines would normally have the financial support of the HNA Group. However, they too, are losing money. Subsidiary Hong Kong Airlines is on the brink of bankruptcy, with all long haul services scheduled for termination by February. In December, 7 aircraft were impounded by authorities and while they were not in use at that time, their storage cost the airline a lot. The HNA Group is heavily in debt and while the company says it hopes to reduce that number significantly this year, it's uncertain how successful they will be.