The trend of increasing volume of international flights is gradually showing that China Southern Airlines will: resume or gradually increase the number of international routes |

(Original title: The upward trend of international flights is gradually showing that China Southern Airlines: will resume or gradually increase international routes | will directly affect the performance meeting)

Associated Press news, November 22 (Reporter Lu Tingting)Since the start of the civil aviation winter and spring flying seasons, the popularity of international routes has increased, with many airlines stating that they “will continue to increase routes”. Among them, China Southern Airlines has added some routes from Guangzhou to Europe and Southeast Asia in terms of international routes. At yesterday afternoon’s performance briefing, Yuan Jintao, general manager of China Southern Airlines’ strategic planning and investment department (600029.SH), said the next step would be to resume or increase international routes from Guangzhou to North America. Due to the increase in shipping capacity, the revenue contribution of international routes to the company will increase.

Industry insiders said, “Market demand for international routes from the fourth quarter of this year to early next year is expected to recover slightly under the stimulus of higher investments in carrying capacity and favorable policies.” “. of passenger flights on China’s international routes was nearly 1,900, essentially returning to the level of the same period last year, but the average ticket price of international routes decreased by about 15% year on year.

The reporter noted that Spring Airlines (601021.SH) recently launched a series of new routes between Nanning and Kuala Lumpur, Phnom Penh, Bangkok, Singapore, etc., and the promotion of air tickets at the start of the flight starts at 99 yuan .

Asked by investors whether fares on international routes have “come down” and the impact on the company, Chen Weihua, general counsel and board secretary of China Southern Airlines, said China Southern Airlines will flexibly adjust fares in according to the market supply and demand of each international route. For example, on the routes between China and North America, Australia, etc., the ticket price remains at a relatively high level, but on the route between China and South- East Asia, due to the rapid increase in capacity, there is some downward pressure on the ticket price. In general, due to the increase in the capacity of China Southern’s international routes, the overall contribution of international routes revenue to the company is still relatively large.

Affected by factors such as contracting demand and high oil prices this year, the recovery of the civil aviation sector continues to face challenges and the overall performance is under pressure. Many airlines have suffered net profit losses of varying degrees in the first three quarters Among them, China Southern Airlines has a net loss of 17.587 billion yuan, Air China (601111 .SH) and China Eastern Airlines (600115.SH) both have a net loss of more than 28.1 billion yuan .

However, the performance of air cargo is quite impressive. Feichangzhun data shows that a total of 192,670 international cargo flights have been implemented nationwide as of Nov. 20, a year-on-year increase of 45 percent and a 434 percent increase over the same period in 2019.

China Southern Airlines Logistics could still make a greater contribution to the company’s overall performance in the third quarter. According to the monthly operating data released by China Southern Airlines, from July to October this year, the cargo and mail load factor increased compared to the same period last year, except for August.

Liu Zubin, chairman and party committee secretary of China Southern Airlines Logistics Co., Ltd., said, “The performance of China Southern Airlines’ cargo logistics segment in the third quarter is still in the best range in history. At present, the relationship between supply and demand in the air cargo market has gradually returned to a balanced level, and the future direction of the market depends on the economic situation and changes in supply and demand.

(edited by: Cao Jingchen)