The Chinese airline Sichuan Airlines has come under financial pressure due to the corona pandemic. The carrier lost around $2,5 billion over the past 1,3 years, of which around $666 million is attributable to the first half of 2022 alone.

The main reason for the airline's financial misery is the Chinese government's zero-Covid policy. Due to recurring lockdowns, the carrier is losing much-needed income. International traffic continues to suffer from the strict entry and quarantine regulations of the People's Republic of China.

Local media reports that Sichuan Airlines' financial situation is said to be severely strained. There is also talk of a possible risk of insolvency, because even before the corona pandemic, the company was not particularly profitable. The current lockdown that the Chinese authorities have declared for the city of Chengdu was last extended on September 8, 2022. This is problematic for the carrier, since no passengers can be transported. Therefore, it is expected that the losses will increase further in the third quarter of the current year.

There is currently speculation in China that Sichuan Airlines could either be absorbed by a capital increase or could be taken over by Air China in the short term. The current owners are Sichuan Airlines Group, China Southern Airlines, China Eastern Airlines, Shandong Airlines and Chengdu Ginkgo Golden Pavilion. According to CH-Aviation.com, Shandong Airlines is also said to be badly hit.