In September 2020, China Southern Airlines Group passenger capacity (measured by available seat kilometres (ASK)) decreased by 23.67% as compared to the same period last year. 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.
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.
In a statement to the stock exchange, the company confirmed that as international travel demand remains low, the airline has been working to strengthen its cost control to reduce the losses caused by the pandemic to “help the company survive the pandemic smoothly”. China Southern warns that revenue for the first three quarters of 2020 will be “materially and adversely affected”.
On October 12, China Southern issued a total of 160,000,000 A Share Convertible Bonds, with a nominal value of RMB100 each and RMB16 billion in total. The A Share Convertible Bonds are issued at nominal value with an initial conversion price of RMB6.24 per share. The A Share Convertible Bonds have a term of six years from the date of the issuance, starting October 15 to October 14 2026. The A Share Convertible Bonds will bear interest at the rate of 0.2% in the first year, 0.4% in the second year, 0.6% in the third year, 0.8% in the fourth year, 1.5% in the fifth year and 2.0% in the sixth year.