(Yicai Global) May 15 -- China Southern Airlines is looking to borrow billions of dollars in bonds to meet China's growing air transportation needs in the Guangdong-Hong Kong-Macao Greater Bay Area while trying to fill its coffers after an abysmal first quarter due to Covid-19.

The airline intends to issue convertible bonds worth no more than CNY16 billion (USD2.3 billion) to enhance the company's capital strength and risk tolerance, the Guangzhou-based firm said in a statement yesterday.

About 66 percent of that will be earmarked for aircraft and related equipment purchases, some 30 percent will go to replenish working capital, and the rest to buy spare engines, the statement added.

China Southern Airlines has been recovering along with its domestic peers since March although its first-quarter earnings show that it suffered a net loss of CNY5.3 billion as many consumers canceled travel plans amid the Covid-19 epidemic.

Last year, the company's net profit slid by 11 percent to CNY2.7 billion from a year ago while its revenue climbed by 7 percent to CNY154.3 billion (USD21.7 billion).

China Southern Airlines's stock price [SHA:600029] fell 0.4 percent to CNY5.08 (US 72 cents) this morning.

Editor: Emmi Laine