CHINA Southern Airlines has decided not to proceed with the spin-off and listing of its subsidiary, China Southern Air Logistics, on the Shanghai Stock Exchange (SSE).

In a website announcement last week, China Southern Airlines Company said that China Southern Air Logistics will withdraw its listing application because of current market conditions.

However, the company said the decision will not impact operations, finances or future plans, reports London's Air Cargo News.

"In view of the current change in market environment, with an aim to coordinate the capital operation planning, China Southern Air Logistics, after thorough communication and prudent evaluation, intended to withdraw the relevant application documents for listing on the SSE," said China Southern Airlines.

"The withdrawal of the listing application on the SSE will not have a material impact on the Company and China Southern Air Logistics, will not have a material adverse impact on the Company's existing production and operating activities and financial condition, nor will it affect the implementation of the Company's future strategic plans."

China Southern Airlines' plans to spin off China Southern Air Logistics were confirmed in March 2023.

This followed a tough period for China Southern Airlines, which suffered record losses in 2022 after the Chinese government's zero-Covid policy severely impacted flights in and out of the country during the pandemic.