Hainan Airlines Holding(SH:600221) Xin Lang Cai Jing·2025-05-13 10:07Core Viewpoint - The construction of Hainan Free Trade Port is expected to drive rapid growth in the aviation transport market, with Hainan Airlines planning to leverage relevant policies to expand international routes and enhance service offerings [1]. Financial Performance - In 2024, Hainan Airlines reported a net loss of 9.21 billion yuan, marking a significant decline from the previous year's profit of 3.11 billion yuan, making it the only unprofitable private airline among its peers [2][4]. - The airline's financial struggles were attributed to factors such as incomplete recovery of international routes, intensified domestic competition, high oil prices, and exchange rate fluctuations [4]. Exchange Rate Impact - Exchange rate losses significantly impacted Hainan Airlines' performance, with a reported financial exchange loss of 13.68 billion yuan in 2024, which was a major factor affecting profitability [7]. - The company's high level of foreign currency liabilities, totaling 648.47 billion yuan, exacerbates the impact of exchange rate fluctuations on its financial health [5][7]. Debt Structure - Hainan Airlines has a high debt ratio, with asset-liability ratios of 98.91% and 98.75% at the end of 2024 and the first quarter of 2025, respectively [7]. - The company plans to improve its debt structure through business development and potential equity financing [9]. Fleet Management - Hainan Airlines is actively reducing its fleet of wide-body aircraft, which are less flexible and have higher operating costs, by terminating leases and selling excess planes [10][11]. - The airline has opened 22 new international routes in 2024, aiming to increase the utilization of its wide-body aircraft and improve operational efficiency [11]. Future Outlook - By early 2025, Hainan Airlines expects to fully restore its international flight capacity to pre-pandemic levels, with plans to expand further [12]. - The airline is strategically positioning itself in second-tier international markets, benefiting from local subsidies for international route development [12][13].