China’s fourth-biggest carrier, Hainan Airlines, expects to report a net profit for 2021. The positive forecast is largely attributed to a successfully completed business restructuring in late December 2021.
According to its stock filing dated January 28, 2022, the Haikou-based airline forecasts a 2021 net profit of between approximately 4.5 billion yuan and 6.2 billion yuan ($708 million to $975 million), a noticeable increase compared to a net loss of 64 billion yuan ($10 billion) in 2020.
As part of its restructuring plan, the ailing HNA Group handed over its aviation business affiliate HNA Aviation to its strategic investor Liaoning Fangda Group in December 2021. HNA Aviation was HNA Group’s aviation branch, which managed airlines companies, including Hainan Airlines.
HNA’s restructuring administrators brought Liaoning Fangda Group as a strategic investor into the ailing group’s aviation branch in September 2021.
In January 2021, HNA Group applied for bankruptcy and reorganization after a long period of financial struggles.