(Yicai Global) Aug. 31 -- Shares in Hainan Airlines Holding jumped by the exchange-imposed ceiling today after the bankrupt Chinese carrier announced that its deficit narrowed by 92 percent in the first half from the same period last year as business improves after the Covid-19 pandemic and its debt restructuring brings in additional funds.

Hainan Airlines’ share price [SHA:600221] closed up 4.78 percent at CNY2.19 (USD0.34). The daily trading limit for companies at risk of delisting is set at 5 percent as opposed to the regular 10 percent.

Hainan Airlines logged net losses of CNY881 million (USD136.3 million) in the six months ended June 30, according to the Haikou-based carrier’s latest earnings report released yesterday. Last year it rang up losses of CNY11.8 billion over the period.

Some CNY3 billion (USD464 million) was pumped into the country’s fourth largest airline as it negotiates with investors to reduce its debt load, it said. And revenue jumped 56.5 percent to CNY18.3 billion (USD2.8 billion).

Parent firm HNA Group was declared bankrupt by the Hainan High People’s Court in March and ordered to begin restructuring. An overaggressive diversification drive saw the aviation-to-financial services group run up debts of USD94 billion by 2017.

A number of potential investors have offered to buy HNA’s aviation assets, Yicai Global learned. These include Shanghai-based carrier Juneyao Air, which is putting together a consortium that could pump in CNY30 billion (USD4.6 billion), and Yuyuan Tourist, a unit of conglomerate Fosun International, that is said to be setting up a CNY40 billion fund.

Editors: Dou Shicong, Kim Taylor