HNA Secures Landmark Bank Loan After Hainan Airlines Restructure

April 15 — The fourth-largest airline in China has secured a syndicated loan exceeding CNY10 billion (USD1.5 billion) from a group of 18 banks, marking its first significant financing support since emerging from bankruptcy restructuring four years ago.

This funding underscores renewed confidence from lenders in the airline, which is based in Hainan, following the resolution of its longstanding debt issues and a steady return to cash flow stability. The restructuring was finalized in April 2022 after Fangda Group Industrial invested CNY38 billion (USD5.6 billion) to facilitate the reorganization.

The airline signed the loan agreement with the participating banks on April 13 during the sixth China International Consumer Products Expo. The syndicate included two policy banks — the Export-Import Bank of China and China Development Bank — alongside six state-owned banks, eight national commercial banks, and two local banks based in Hainan.

The CNY10 billion syndicated loan demonstrates strong support and confidence from the banks regarding the airline’s liquidity, based on the successful resolution of its historical debt burdens and its ongoing efforts to rebuild operational independence, stated Zhang Hongqing, vice president of the airline’s parent company.

The airline filed for bankruptcy reorganization in 2021 after aggressive growth early on, with the COVID-19 pandemic in 2020 further straining its finances.

Following its restructuring, the airline has shifted focus back to its core passenger and cargo transportation services, selling off non-core assets to streamline operations. The company also announced that it achieved its first operational profit in five years in 2023.

Hainan Airlines Holding, the carrier’s primary publicly traded unit, projected in January that net profit for 2025 would range between CNY1.8 billion and CNY2.2 billion (USD264 million to USD322.7 million), a significant improvement from a net loss of CNY921 million (USD135.1 million) in 2024.