China Southern stock weighs rising revenue against deeper losses

Published on 10/07/2026 at 05:59 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

China Southern stock traded at HKD 2.85 on October 7, 2026, while H1 revenue rose 9.72 percent year over year. The net loss widened to RMB 3.7 billion.

China Southern, CNE1000002T6, Illustration mit AI erstellt.

China Southern stock (ISIN CNE1000002T6) was trading at HKD 2.85 on the Hong Kong Stock Exchange at 11:38 a.m. HKT on October 7, 2026, valuing the airline at HKD 76.4 billion. The latest operating picture combines higher traffic-related revenue with a much deeper loss.

Revenue rises as losses widen

According to Moomoo in its September 21, 2026 report, China Southern generated operating revenue of RMB 94.7 billion in the first half of 2026, up 9.72 percent from the same period a year earlier. Passenger revenue reached RMB 79.5 billion, while cargo and mail revenue rose 18.65 percent to RMB 10.8 billion.

The cost profile moved in the opposite direction. Aviation fuel costs increased 37.67 percent to RMB 34.9 billion, and operating expenses reached RMB 99.3 billion, or 104.91 percent of revenue. The company posted a net loss attributable to shareholders of RMB 3.7 billion, compared with a loss of RMB 1.5 billion in the first half of 2025.

Fuel costs set the operating test

The figures leave China Southern with a clear operational constraint: revenue growth did not cover the increase in expenses. Operating cash inflow was RMB 10.5 billion in the first half, down 10.48 percent year over year, while investing cash outflow reached RMB 15.8 billion, up 259.67 percent.

The fleet stood at 973 aircraft at the end of June 2026. Management said it would match capacity more closely with demand, expand connecting traffic and improve fuel-cost control, according to Moomoo.

Analysts see 37.2 percent upside

The analyst picture is mixed rather than uniformly negative. Investing.com reports a Neutral consensus from 9 analysts, with 4 Buy, 4 Hold and 3 Sell recommendations. The average 12-month target is HKD 3.91, with a high of HKD 6.21536303 and a low of HKD 2.60493394.

Against the HKD 2.85 price on October 7, the average target lies 37.2 percent above the stock. That gap reflects the tension between recovering revenue and the pressure from fuel, financing and fleet-related costs.

China Southern stock holds at HKD 2.85

China Southern stock was last at HKD 2.85 on the Hong Kong Stock Exchange on October 7, 2026 at 11:38 a.m. HKT. The 52-week range was HKD 2.81 to HKD 6.62, and trading volume stood at 874,000 shares.