China Southern stock trades at HKD 2.88 as losses widen

Published on 10/08/2026 at 05:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half revenue rose 9.72 percent to RMB 94.7 billion in 2026, but net loss reached RMB 3.7 billion. China Southern stock was at HKD 2.88 on October 8.

China Southern, CNE1000002T6, Illustration mit AI erstellt.

China Southern Airlines Company Limited stock (ISIN CNE1000002T6) carried a market capitalization of HKD 77.0 billion on October 8, 2026, while its first-half results showed revenue growth alongside a deeper loss. The Hong Kong listing was trading at HKD 2.88 at 10:55 a.m. HKT, down 0.17 percent on the session.

Revenue rose as losses widened

According to Futubull on September 21, 2026, China Southern reported RMB 94.7 billion in operating revenue for the first half of 2026, up 9.72 percent from the same period a year earlier. The company recorded a net loss attributable to shareholders of RMB 3.7 billion, compared with a RMB 1.5 billion loss in the first half of 2025.

The cost picture was less favorable than the revenue line. Operating expenses rose 17.01 percent year over year to RMB 99.3 billion, while aviation fuel costs increased 37.67 percent to RMB 34.9 billion, equal to 51.25 percent of operating expenses.

Fuel costs remain the pressure point

For investors, the central comparison is between traffic growth and cost inflation. Passenger revenue increased 8.76 percent to RMB 79.5 billion, and international passenger traffic volume rose 13.29 percent, but the fuel bill grew more than four times faster than revenue.

China Southern also reported cargo and mail revenue of RMB 10.8 billion, up 18.65 percent year over year. Basic loss per share was RMB 0.20, while the debt-to-asset ratio stood at 85.85 percent, 1.63 percentage points higher than a year earlier.

Network expansion meets weaker margins

The airline continues to expand international connectivity despite the pressure on margins. TTG Asia reported on October 2, 2026, that China Southern and Malaysia Airlines will add five codeshare routes from October 25, including services linking Kuala Lumpur with Shenzhen, Changsha, Xiamen, Chengdu Tianfu and Zhengzhou.

That expansion offers a growth route for international passenger traffic, but the first-half numbers show why capacity alone is not enough. The company must convert additional routes and traffic into stronger margins while managing fuel, financing and fleet costs.

China Southern stock trades below its yearly high

China Southern stock was trading at HKD 2.88 on the Hong Kong Stock Exchange at 10:55 a.m. HKT on October 8, 2026. The price stood above the 52-week low of HKD 2.81 but remained 56.50 percent below the 52-week high of HKD 6.62, keeping profitability the key valuation issue.