Hainan Airlines, China’s fourth-largest carrier, intends to make a profit in 2021.
The favorable outlook is partly due to a successful corporate restructuring that took place in late December 2021.
The Haikou-based airline expects a net profit of between 4.5 billion yuan and 6.2 billion yuan ($708 million to $975 million) in 2021, up from a net loss of 64 billion yuan ($10 billion) in 2020, according to a stock filing dated January 28, 2022.
In December 2021, the struggling HNA Group turned over its aviation company unit HNA Aviation to its strategic partner Liaoning Fangda Group as part of its restructuring strategy.
HNA Aviation was the HNA Group’s aviation division, which oversaw airlines including as Hainan Airlines.
In September 2021, HNA’s restructuring administrators welcomed Liaoning Fangda Group as a strategic investor in the troubled company’s aviation division.
After a long period of financial difficulties, HNA Group filed for bankruptcy and reorganization in January 2021.