Chinese carriers haven’t been immune to the crisis, but they’ve managed to recover much faster thanks to a vast domestic market and the removal of travel curbs as the outbreak there was brought under control.
Stock gains have accelerated this month, in part on the yuan’s strength. That lowers the airlines’ costs on fuel as well as debt, some of which is borrowed in US dollars. Recent oil price declines further cap fuel expenses, which unlike many carriers Chinese airlines don’t hedge. Still, China’s big three — Air China, China Southern Airlines Co. and China Eastern Airlines Corp. - are expected to be unprofitable in the second half of this year, according to analyst forecasts compiled by Bloomberg. They each posted first-half losses of more than 8 billion yuan ($1.2 billion).
Airbus tops Boeing on deliveries, avoids order cancellations
Airbus delivered 39 jets last month while avoiding order cancellations as it battles to keep revenue flowing in a market battered by the coronavirus crisis.
August handovers comprised 35 A320-series narrow-body planes and four twin-aisle jets, the Toulouse, France-based company said late Tuesday. The overall tally is down 10 planes from July. Boeing said it delivered 13 planes in August, in an update overshadowed by news that handovers of the 787 Dreamliner are to be slowed for checks for a new manufacturing flaw involving gaps in the plane’s horizontal stabiliser that are wider than specified.
Airbus deliveries have so far held up better during the pandemic than its US rival. Bloomberg
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