China Southern Airlines has announced it will no longer proceed with China Southern Air Logistics.
China Southern Airlines has announced it will no longer proceed with the spin-off and listing of its subsidiary, China Southern Air Logistics, on the Shanghai Stock Exchange (SSE), citing market conditions as the key reason for the decision.
In a statement, the airline said China Southern Air Logistics had chosen to withdraw its listing application following a thorough evaluation of the current economic climate.
Despite the withdrawal, China Southern Airlines reassured investors that the move would not affect the company’s operations, financial stability, or long-term strategic plans.
The airline stated: “The withdrawal of the listing application on the SSE will not have a material impact on the company or China Southern Air Logistics, nor will it affect the implementation of the company’s future strategic plans.”
China Southern first confirmed plans to spin off China Southern Air Logistics in March 2023, as part of a strategy to unlock value and strengthen its cargo division.
However, economic uncertainty and fluctuating market conditions appear to have led to a reconsideration of the plan.
The decision follows a challenging period for China Southern Airlines, which suffered record losses in 2022 due to China’s strict zero-Covid policy, which significantly disrupted domestic and international flight operations.
While the airline has since recovered some momentum, the decision to withdraw its logistics subsidiary’s listing reflects the ongoing volatility in China’s financial markets.
More China Airlines news here: https://www.csair.com/eu/en/index.shtml
https://couriernews.co.uk/blog/china-southern-airlines-halts-logistics-listing/