China Southern Airlines (01055) is expected to incur a net loss attributable to shareholders of approximately RMB 3.473 billion to 3.973 billion in the first half of the year.

China Southern Airlines (01055) announced that it is expected to incur a net loss attributable to the shareholders of the listed company of RMB 3.473 billion to RMB 3.973 billion in the first half of 2026. The net loss attributable to the shareholders of the listed company after deducting non-recurring gains and losses is expected to be RMB 4.48 billion to RMB 4.98 billion. In the first half of 2026, the Chinese economy grew steadily, the domestic civil aviation transport market showed a stable development trend, and the demand for resident travel and tourism continued to grow, leading to a continuous increase in the company's total transportation turnover and revenue scale. In the first quarter, the company seized the opportunity of the Spring Festival travel rush and market recovery, continuously optimized its route network structure and passenger and cargo layout, and significantly improved overall efficiency compared to the same period last year. However, starting from March, due to the impact of international geopolitical situations, aviation fuel prices fluctuated dramatically, putting immense pressure on the entire industry. The company's aviation fuel costs surged year-on-year in the first half of the year. Facing the sudden external impact, the company adhered to the principle of "strengthening the system, improving capabilities, intelligent prevention and control," established a solid safety operation baseline, rapidly responded to the situation, adapted to changes, formulated special response plans, dynamically optimized capacity, strengthened passenger and cargo sales, streamlined cost management, enhanced industrial collaboration, deepened strategic management system construction, implemented multiple measures to increase revenue and reduce expenses comprehensively, and minimized the impact. However, due to objective factors such as the complex international situation, it is expected that the company will incur a loss in its operating performance in the first half of 2026.