China Southern Airlines Company Limited provided preliminary earnings guidance for the first half ending June 30, 2022. For the period, the company expects to record a loss in the first half of 2022, and a net loss attributable to shareholders of the Company of approximately RMB 10.2 billion to RMB 12.1 billion. The net loss after deducting the non-recurring profit or loss attributable to shareholders of the Company in the first half of 2022 is estimated to be approximately RMB 10.3 billion to RMB 12.5 billion.

During the Reporting Period, the domestic civil aviation industry was affected by multiple shocks such as repeated impact of pandemic, high oil prices, and the depreciation of the Renminbi. In the first half of 2022, the Company's passenger capacity and revenue passenger kilometers decreased by 34.3% and 42.6%, respectively, as compared with the corresponding period in last year, and decreased by 54.8% and 64.8%, respectively, as compared with the first half of 2019. In the face of the complex and severe external situation, the Company adhered to the general principle of seeking progress while maintaining stability, and made every effort to respond to various challenges, and has done a good job in epidemic prevention and control and safe production and operation, and strived to minimize adverse effects.

However, affected by multiple factors such as the epidemic, the operating performance of the Company in the first half of 2022 continued to loss.