Since the outbreak of covid-19 pneumonia in 2020, the aviation industry has suffered an unprecedented heavy blow. Business difficulties and huge performance losses have become a common phenomenon, and the civil aviation industry has become the industry most affected by the epidemic.
three major airlines lost more than 40 billion
China's three major airlines (Air China, China Eastern Airlines and China Southern Airlines), which are most concerned by the market, disclosed their 2021 annual report as scheduled on March 31. According to the data, the losses of the three major airlines in 2021 exceeded 10 billion yuan, with a total loss of nearly 41 billion yuan, which was further enlarged compared with the same period of the previous year.
Since 2020, the "darkest hour" of the civil aviation industry has lasted for two years. Except that Xiamen International Airport Co.Ltd(600897) did not disclose the performance of last year, the net profit of 11 listed companies of civil aviation airports (including Shanhang b) totaled 40.026 billion yuan (calculated by the median value of the forecast shares), which narrowed significantly compared with the previous year. The loss of Shanhang B ranked behind the three airlines, exceeding 1.8 billion yuan, Shanghai International Airport Co.Ltd(600009) , Guangzhou Baiyun International Airport Company Limited(600004) , Juneyao Airlines Co.Ltd(603885) was 1.711 billion yuan, 423 million yuan and 375 million yuan respectively, China Express Airlines Co.Ltd(002928) was the first loss since listing.
At the same time, the two airlines reversed their losses in 2021, namely Spring Airlines Co.Ltd(601021) , Hainan Airlines Holding Co.Ltd(600221) , with a median net profit of 5.35 billion yuan in 2021. China's largest general aviation company Citic Offshore Helicopter Co.Ltd(000099) 2021 net profit increased by about 13%.
expense rate is high and profit is further affected
Under the influence of the epidemic and other factors, the industry's seating rate has fallen sharply, and the competition among airlines has become more intense. "China Eastern Airlines incident" cast a shadow on the recovery of the industry, and safety has become the primary consideration of airlines. This can be seen from the China Express Airlines Co.Ltd(002928) annual report. The company said that in order to further improve the safe operation level, comprehensive and strict safety troubleshooting and rectification measures were taken, which had a certain impact on the company's transportation capacity.
Revenue fell, but airline costs are still rising. According to the statistics of data treasure, among the six airlines that have disclosed the annual report, the expenditure of three fees (sales expenses, management expenses and financial expenses) of five companies is larger than that in 2020, among which the expenditure of China Express Airlines Co.Ltd(002928) three fees reached the highest level in recent five years, reaching 835 million yuan Air China Limited(601111) three fee expenditure reached 13.078 billion yuan, a year-on-year increase of more than 30% China Eastern Airlines Corporation Limited(600115) , China Southern Airlines Company Limited(600029) three fees increased slightly. The increase in expenses puts pressure on the performance of airlines.
Among the three expenses, financial expenses increased the most Air China Limited(601111) 2021 financial expenses increased by more than 100% year-on-year, and China Express Airlines Co.Ltd(002928) increased by more than 200% year-on-year.
aviation industry enters a "downturn"
It is worth mentioning that the Hainan Airlines Holding Co.Ltd(600221) loss in 2020 reached more than 64 billion, higher than the total loss of the three major airlines in that year. In 2021, Hainan Airlines Holding Co.Ltd(600221) turnaround was mainly due to the adjustment of main business and the company's recognition of relevant debt restructuring profits of more than 16 billion yuan during the reporting period. After deducting non operating profit and loss, Hainan Airlines Holding Co.Ltd(600221) still suffered large losses in 2021 Spring Airlines Co.Ltd(601021) 2021 profit is mainly due to the receipt of government subsidies.
The above two companies successfully turned losses with non recurring profits and losses, but not all companies can be so lucky. In 2021, many airlines, including the three major airlines, had non recurring profits and losses of different scales, but it was still a drop in the bucket compared with the loss last year.
Covid-19 pneumonia broke out all over the world, and the passenger throughput of airlines fell sharply. In 2020, the global air passenger volume reached 1.809 billion, a year-on-year decrease of more than 60%. In 2021, China's domestic transport airports completed 907 million passenger throughput, an increase of 5.9% over 2020, but still a decrease of 33% over 2019. In 2021, 3.051 million international flights were completed, down 82% from 2020 and less than 5% in 2019.
In fact, the sluggish performance of the aviation industry began to show signs long before the epidemic. In 2019, the year-on-year growth rate of national tourism throughput fell to single digits. In addition, the performance of listed companies such as Juneyao Airlines Co.Ltd(603885) , Guangzhou Baiyun International Airport Company Limited(600004) , China Southern Airlines Company Limited(600029) and China Southern Airlines Company Limited(600029) continued to decline in 2018 and 2019.
industry has no large-scale layoffs, and salaries have increased and decreased
Layoffs and salary cuts are self-help measures for the company in case of business crisis. Since the civil aviation industry fell into difficulties, there have been large-scale layoffs in the industry. According to the statistics of databao, the total number of Guangzhou Baiyun International Airport Company Limited(600004) latest employees has decreased by more than 10% compared with the end of 2019, and China Southern Airlines Company Limited(600029) , Shenzhen Airlines and others have decreased slightly The total number of Juneyao Airlines Co.Ltd(603885) , China Express Airlines Co.Ltd(002928) employees has increased.
In terms of salary, the number of airlines with a year-on-year decrease in per capita salary in 2020 accounted for more than 80%, and the per capita salary of five companies including Juneyao Airlines Co.Ltd(603885) , Shandong Airlines B and Spring Airlines Co.Ltd(601021) decreased by more than 10%.
Up to now, only one company has disclosed the per capita salary in 2021, and China Express Airlines Co.Ltd(002928) per capita salary has decreased by more than 10%. The company said that during the reporting period, the top three executives' salary decreased by nearly 25% compared with 2020 by cutting expenses and limiting the salary of senior managers.
According to the flight attendants of an airline, for us, the salary is closely related to the number of flight hours. If we fly more, we will get more salary, and if we fly less, we will get less salary. Since the outbreak of covid-19, wages and benefits have fallen sharply, and some colleagues have resigned to engage in the live broadcasting industry.
industry self rescue, the market value of the company has shrunk sharply
When encountering "black swan", airlines "live a hard life" to save themselves, reduce operating costs, reduce travel expenses and training fees, cut executive salaries, issue bonds to replenish blood, and so on. At the initial stage of the epidemic, China Eastern Airlines Corporation Limited(600115) launched the "follow your heart" half year card and issued ultra short financing bonds; Cathay Pacific, Shanghai International Airport Co.Ltd(600009) , etc. restructured their business, and China Southern Airlines Company Limited(600029) , Hainan Airlines Holding Co.Ltd(600221) and other water testing live broadcast with goods.
The difficulties encountered by the industry are obvious, and the civil aviation airport sector is also cold in the capital market. In terms of market performance, most of the civil aviation airport stocks, including Shanhang B, have fallen since 2020. Shanhang B has even fallen by 65%, and Shanghai International Airport Co.Ltd(600009) , Guangzhou Baiyun International Airport Company Limited(600004) and other stocks have fallen by more than 20%. The market value of the company has also shrunk sharply with the decline of the stock price. The market value of Shanghai International Airport Co.Ltd(600009) at the end of 2019 ranks first in the residential airport sector, and has now been surpassed by Air China Limited(601111) , China Southern Airlines Company Limited(600029) . As the audited ending net assets of Shanhang B in 2021 are negative, it is subject to "delisting risk" and is currently suspended.
industry continues to receive "rescue" red envelopes
In 2020, relevant departments timely issued a package of policies to assist enterprises in their rescue, including exemption from the civil aviation development fund payable by airlines, financial support for the implementation of major transportation missions, and reduction of the charging standards of some government managed airports, air traffic control and aviation fuel.
In February this year, the aviation industry received another policy red envelope. The national development and Reform Commission and other 14 departments issued several policies on promoting the recovery and development of difficult industries in the service industry, referring to five relief and support measures for the civil aviation industry: including suspending the advance payment of value-added tax by air transport enterprises for one year in 2022, and local governments can coordinate the central government's transfer payment to local governments and local own financial resources according to actual needs, and support airlines and airports in epidemic prevention and control.
The road to recovery is full of difficulties. How long will this dilemma last and when will it usher in dawn. At present, the epidemic is still sporadic in China, the prevention and control situation is still grim, and the passenger throughput of international routes is still limited. The epidemic will always pass, and the industry recovery is still the general direction. According to the prediction of the International Aviation Association, the global aviation industry will remain in a state of loss in 2022, and the situation is still grim. However, in view of the positive travel willingness of passengers, the industry is expected to continue to recover.
