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China Southern Airlines (ZNH)

Filed: 14 Oct 20, 6:12am

Exhibit 99.1

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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ANNOUNCEMENT ON KEY OPERATING DATA

 

This announcement is made regarding the operating data for September 2020 of the Group to be published on the Shanghai Stock Exchange and pursuant to Part XIVA of the Securities and Futures Ordinance.

 

The relevant key operating data was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports. Investors are hereby reminded of the risks which may result from inappropriate reliance upon or utilization of the relevant information.

 

This announcement is made regarding the operating data for September 2020 of China Southern Airlines Company Limited (the “Company”) and its subsidiaries (collectively, the “Group”) to be published on the Shanghai Stock Exchange and pursuant to Part XIVA of the Securities and Futures Ordinance.

In September 2020, passenger capacity (measured by available seat kilometres (“ASK”)) of the Group decreased by 23.67% as compared to the same period last year (a year-on-year (“YoY”) basis). Of which, passenger capacity for domestic routes increased by 6.55%, and for regional and international routes decreased by 92.25% and 89.88%, respectively as compared to the same period last year. Compared to the same period last year, passenger traffic (measured by revenue passenger kilometres (“RPK”)) decreased by 27.53%. Of which, passenger traffic for domestic routes increased by 1.63%, and for regional and international routes decreased by 96.18% and 92.72%, respectively as compared to the same period last year. The passenger load factor was 77.60%, representing a decrease of 4.14 percentage points as compared to the same period last year. Of which, the passenger load factor for domestic, regional and international routes decreased by 3.80, 35.04 and 22.75 percentage points, respectively, as compared to the same period last year.

In terms of cargo operations, in September 2020, cargo capacity (measured by available tonne kilometers (“ATK”) - Cargo and Mail) increased by 0.97% as compared to the same period last year. Cargo and mail traffic (measured by revenue tonne kilometres (“RTK”) - Cargo and Mail) decreased by 1.05% as compared to the same period last year. The cargo and mail load factor was 50.59%, representing a decrease of 1.04 percentage points as compared to the same period last year.

 

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In September 2020, the Group has newly launched the following major routes: Shenzhen-Taiyuan-Shenzhen, Xiamen-Nanjing-Shenyang-Nanjing-Xiamen (each seven flights per week).

In September 2020, the Group introduced two A321NEO aircraft and terminated the lease of one EMB190 aircraft. As of the end of September 2020, the Group operated a fleet of 854 aircraft as set out below:

 

Aircraft Model

  Self-owned   Finance Lease   Operating Lease   Subtotal 

Airbus 380 Series

   4    1    0    5 

Airbus 350 Series

   0    6    0    6 

Airbus 330 Series

   4    29    13    46 

Airbus 320 Series

   95    100    116    311 

Boeing 787 Series

   4    25    8    37 

Boeing 777 Series

   8    21    0    29 

Boeing 737 Series

   156    82    163    401 

Boeing 747 Series

   2    0    0    2 

EMB190 Series

   6    0    8    14 

ARJ21 Series

   1    2    0    3 
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   280    266    308    854 
  

 

 

   

 

 

   

 

 

   

 

 

 

KEY OPERATION DATA OF SEPTEMBER 2020

 

Traffic

  September 2020   Cumulative 2020 
  Amount   Month-on-
Month
(“MoM”)
Change
(%)
   YoY
Change
(%)
   Amount   YoY Change
(%)
 

RPK (in million)

 

Domestic

   16,609.03    12.96    1.63    91,479.47    -37.35 

Regional

   8.16    77.39    -96.18    203.93    -92.32 

International

   515.96    11.32    -92.72    11,767.10    -81.96 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   17,133.15    12.92    -27.53    103,450.50    -51.64 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

RTK (in million)

 

Domestic

   1,631.80    17.30    0.33    9,009.42    -35.91 

Regional

   1.54    212.00    -92.77    23.98    -90.50 

International

   568.29    4.60    -49.87    5,290.13    -47.03 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   2,201.63    13.79    -20.84    14,323.53    -41.05 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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RTK - Cargo and Mail (in million)

 

Domestic

   148.34    34.64    -13.16    953.77    -23.66 

Regional

   0.81    794.05    -63.38    6.20    -68.28 

International

   522.54    4.03    3.31    4,267.03    -0.47 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   671.69    9.65    -1.05    5,227.01    -5.92 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Passengers carried (in thousand)

 

Domestic

   11,096.80    8.23    2.51    61,581.27    -36.04 

Regional

   7.95    84.67    -95.04    180.31    -90.96 

International

   80.84    9.95    -95.21    2,516.41    -83.60 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   11,185.58    8.28    -11.73    64,277.99    -43.43 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cargo and mail carried (in thousand tonnes)

 

Domestic

   90.86    31.59    -12.96    583.31    -23.88 

Regional

   0.83    919.68    -58.72    5.99    -65.41 

International

   55.38    5.75    -7.84    462.67    -7.46 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   147.07    21.05    -11.67    1,051.97    -18.04 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Capacity

  September 2020   Cumulative 2020 
  Amount   MoM
Change
(%)
   YoY
Change
(%)
   Amount   YoY Change
(%)
 

ASK (in million)

 

Domestic

   21,169.71    6.29    6.55    128,703.03    -26.81 

Regional

   23.91    164.02    -92.25    429.10    -87.68 

International

   885.73    10.37    -89.88    17,757.11    -77.34 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   22,079.35    6.51    -23.67    146,889.24    -43.00 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ATK (in million)

 

Domestic

   2,429.01    6.09    6.88    14,547.56    -27.01 

Regional

   3.28    220.61    -91.14    54.76    -86.42 

International

   882.44    5.17    -45.14    8,909.78    -37.37 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   3,314.74    5.91    -15.40    23,512.10    -31.97 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

ATK - Cargo and Mail (in million)

 

Domestic

   523.74    5.39    8.10    2,964.29    -27.76 

Regional

   1.13    441.84    -87.84    16.14    -82.02 

International

   802.73    4.68    -2.23    7,311.64    1.91 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   1,327.60    5.03    0.97    10,292.07    -9.47 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Load Factor

  September 2020   Cumulative 2020 
  Figure
(%)
   MoM
Change
(Percentage
Points)
   YoY
Change
(Percentage
Points)
   Figure
(%)
   YoY Change
(Percentage
Points)
 

Passenger Load Factor (RPK/ASK)

 

Domestic

   78.46    4.64    -3.80    71.08    -11.95 

Regional

   34.11    -16.66    -35.04    47.52    -28.72 

International

   58.25    0.50    -22.75    66.27    -17.00 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   77.60    4.41    -4.14    70.43    -12.58 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cargo and Mail Load Factor

 

Domestic

   28.32    6.15    -6.94    32.18    1.73 

Regional

   71.86    28.31    48.00    38.43    16.64 

International

   65.10    -0.40    3.49    58.36    -1.39 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   50.59    2.13    -1.04    50.79    1.91 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Overall Load Factor (RTK/ATK)

 

Domestic

   67.18    6.42    -4.38    61.93    -8.60 

Regional

   46.84    -1.29    -10.54    43.80    -18.81 

International

   64.40    -0.35    -6.08    59.37    -10.82 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   66.42    4.60    -4.56    60.92    -9.38 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Notes:

 

 1.

“RPK(s)” refers to the number of passengers carried multiplied by the kilometers flown;

 

 2.

“RTK(s)” refers to the load (passenger and cargo) in tonnes multiplied by the kilometers flown;

 

 3.

“RTK(s) - Cargo and Mail” refers to the cargo and mail load in tonnes multiplied by the kilometers flown;

 

 4.

“ASK(s)” refers to the number of seats available for sale multiplied by the kilometers flown;

 

 5.

“ATK(s)” refers to the number of tonnes of capacity available for transportation multiplied by the kilometers flown;

 

 6.

“ATK(s) - Cargo and Mail” refers to the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometers flown;

 

 7.

“Passenger Load Factor” refers to RPK expressed as a percentage of ASK;

 

 8.

“Cargo and Mail Load Factor” refers to RTK- Cargo and Mail expressed as a percentage of ATK—Cargo and Mail;

 

 9.

“Overall Load Factor” refers to RTK expressed as a percentage of ATK.

The key operating data above was calculated based on the internal statistics of the Group, which may differ from the data disclosed in the relative periodic reports. Investors are hereby reminded of the risks which may result from inappropriate reliance upon or utilization of the information given above.

 

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In the first three quarters of 2020, affected by the COVID-19 pandemic, the global aviation industry has experienced severe challenges. With the gradual stabilization of the domestic pandemic control situation, domestic’s civil aviation is showing a steady recovery and development trend, however, due to the impact of the overseas pandemic, the scale of passenger transportation on international routes continues to remain low. In the face of unprecedented difficulties, the Group is taking pandemic prevention and control as part of its normal operations. On one hand, the Group has been strengthening its cost control to make every effort to reduce the losses caused by the pandemic and actively seek policy support and, on the other hand, seizing market opportunities to adopt various measures to increase passenger and freight revenue, and to help the Company survive the pandemic smoothly. In view of the huge losses caused by the pandemic to the aviation industry and the global economy, it is expected that the operating results of the Group in the first three quarters of 2020 will be materially and adversely affected. Investors are advised to pay attention to investment risks.

 

  

By order of the Board

China Southern Airlines Company Limited

Xie Bing

Company Secretary

Guangzhou, the People’s Republic of China

13 October 2020

As at the date of this announcement, the Directors include Wang Chang Shun, Ma Xu Lun and Han Wen Sheng as executive Directors; and Zheng Fan, Gu Hui Zhong, Tan Jin Song and Jiao Shu Ge as independent non-executive Directors.

 

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