Beijing Capital Airport Losses Since The Start Of The Pandemic Hit $735 Million.

Published: May 4, 2022
Updated: May 4, 2022
Beijing Capital Airport
Beijing Capital Airport

The losses at Beijing Capital Airport have totaled $735 million since the outbreak of the pandemic began.

Due to the fallout from the Covid-19 Pandemic, Beijing Capital International Airport, the operator of one of China’s main international airports, reported a loss of 578.3 million yuan, or about $90 million, in the first quarter of 2022, up from 471.9 million yuan a year earlier.

The first-quarter loss, which was disclosed in a stock filing, added to the company’s losses since the Pandemic began in 2020. Last year, the company lost 2.1 billion yuan, up 4% from the 2.03 billion yuan loss in 2020. 

The Hong Kong-listed company has lost a total of nearly 4.7 billion yuan, or $735 million, since 2020, and its shares have lost nearly 40% of their value. In 2019, the year before the global Pandemic began, the company made a full-year profit of 2.1 billion yuan.

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The airport reported that operating income fell to 658 million yuan in the first quarter of 2022, down from 778 million yuan a year earlier. Air China, Air France, Air Canada, China Eastern, Lufthansa, and United are among the airlines that fly to Beijing Capital International.

According to the Xinhua News Agency, the National Health Commission reported 1,410 new locally transmitted confirmed Covid-19 cases in mainland China on Friday, with 1,249 in Shanghai. According to the agency, another 9,293 local asymptomatic carriers were discovered.

The expected net loss last year, according to the board, was primarily due to the epidemic’s ongoing impact, which has hampered the recovery of passenger throughput, aircraft movement, cargo, and mail volume, putting continued pressure on the company’s operating results.

The virus continued to spread around the world, greatly reducing the volume of civil aviation passenger traffic, and listed airports in key Chinese cities all suffered losses last year.

Guangzhou Baiyun International Airport expects a net loss of 381 million yuan to 465 million yuan in 2021, followed by Shenzhen Baoan International Airport, which expects a record-high net loss of 25.5 million yuan to 50.8 million yuan in 2021.

Losses from the epidemic are expected to reach 1.64 billion to 1.78 billion yuan in 2021, according to Shanghai Airport (Group) Ltd.

Beijing Capital Airport

The results released by the listed airport companies all pointed to the epidemic’s devastating impact, which resulted in a drop in passenger numbers and aircraft movements.

Furthermore, costs associated with epidemic prevention have remained high, and the majority of international routes have remained closed.

Market insiders believe that future performance will be largely determined by domestic epidemic prevention and the overall state of the aviation industry.

Also Read China’s COVID Policy Locks Down a City Three Times the Size of New York

On Friday, China rejected suspending business or extending the closure of catering, supermarkets, scenic spots, and cinemas in the absence of policy support or an epidemiological survey, in an effort to boost the services sector, which has been hit hard by the epidemic.

To support the industry, China announced 31 vital policies and 31 supportive measures on February 18 to support the catering, retail, tourism, railway, and road transport industries, as well as civil aviation – five industries that have borne the brunt of the Pandemic’s economic onslaught and are major sources of employment.

The prepayment of value-added tax by air transport enterprises will be suspended for one year in 2022, according to the notice. The notice also encourages banks and financial institutions to increase credit support for hub airports, as well as qualified airlines to issue corporate credit bonds to diversify their financing options.

According to a report released earlier by the Civil Aviation Administration of China, the industry lost 84.3 billion yuan in 2021, with only five airlines making a profit.

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