Citing improvements in its main business operations, as well as an increase in asset disposal income, Hainan Airlines forecasts a return to profitability for 2019.
In an earnings forecast the carrier states that its net profit will be between CNY450 million ($65.1 million) and 675 million for the year ended 31 December 2019.
However, when taking into account non-recurring items, the carrier states it expects a net loss of CNY1.6 billion to CNY2.2 billion.
The carrier’s forecast represents a contrast with its 2018 full-year results, in which it made an operating loss of CNY5.1 billion, with net loss coming in at CNY 3.6 billion.
Hainan cites cost control, better management practices, as well as falling jet fuel prices, among reasons for the optimistic forecast.
Its October divestment of a 48% stake of its subsidiary Tianjin Airlines to holding company HNA Group also reaped benefits. The carrier states it is expected to realise a profit of about CNY2.2 billion.
Hainan Airlines is expected to issue its full-year results in March.
