China Southern parent first to receive capital injection

The parent of China Southern Airlines secured a US$439 million capital injection from the Ministry of Finance, Bloomberg reported. Earlier this month, it was reported that parents of both China Southern and China Eastern Airlines would receieve a capital injection before the end of the year. The injection could help the airline to hold a private share sale to help it repay its debts. China’s airlines lost a combined US$615 million in the first 10 months of the year. Slower-than-expected air travel growth, rising fuel costs earlier in the year and natural disasters have all contributed to airlines’ woes. China Eastern Airlines, which has forecast a full-year loss, is also seeking government funding, while Air China earlier this week announced a tripling of its losses on fuel hedging.