Air Macau, currently the only airline with an operating license in Macau, is facing continuing losses and recently announced that it has received a capital injection of approximately MOP$2.4 billion (US$297 million) from its shareholders. This is the second capital injection for Air Macau in five years, with the Macao SAR Government being one of those shareholders.
Air Macau said that the company’s capital will be reduced from MOP$842 million (US$104 million) to MOP$200 million (US$24.7 million), with shareholders to then inject approximately MOP$2.4 billion, which has been fully subscribed.
The government holds a 21.5% stake in Air Macau, while Air China holds 66.9%, so the government will inject MOP$511 million (US$63.2 million) into the embattled airline. This injection is about 48.6% more than the MOP$1.6 billion (US$198 million) that Air Macau requested from its shareholders last year.
Air Macau first reduced its capital to MOP$200 million to avoid triggering Article 206 of the Commercial Code of Macau, which stipulates that if a company’s net assets fall below half of its capital, the company must be dissolved or its capital reduced if the shareholders do not increase the capital.
Air Macau suffered significant losses during the pandemic and received its first capital injection of MOP$1.8 billion (US$223 million) from shareholders in 2021. However, the pandemic continued in 2021 and 2022, causing the company to lose MOP$770 million (US$95.2 million) and MOP$1.03 billion (US$128 million) respectively. In 2022, Air Macau reduced its capital by MOP$1.4 billion (US$173 million) to avoid triggering the Commercial Code.
However, after Macau reopened in 2023, thre airline was still unable to reverse its predicament, recording losses of MOP$240 million (US$29.7 million) in 2023 and MOP$680 million (US$84.1 million) in 2024.
Air Macau requested shareholders to inject approximately MOP$1.6 billion last year with a report by the Legislative Assembly (AL) disclosing comments made by government representatives to the AL subcommittee stating that the airline was experiencing “difficult operating conditions, which led to the losses”.
Macau’s Civil Aviation Activities Law will come into effect in February 2026, at which point Macau’s aviation market will be fully liberalized and the franchise system no longer in place. Air Macau’s franchise will end when the Civil Aviation Activities Law comes into effect.
