Chinese Airlines Report Increased Losses in First Quarter

Beijing: Results released on Tuesday indicate that the first-quarter losses for China’s three major state-owned airlines have increased compared to the same period last year. This downturn occurs amidst heightened competition and growing economic pressures impacting consumers.

China Southern Airlines, Air China, and China Eastern have encountered difficulties in returning to profitability following the pandemic. This is despite the global airline industry’s return to profit in 2023. These Chinese airlines have now recorded annual losses for five consecutive years.

Air China, the nation’s flag carrier, declared a net loss of 2.04 billion yuan ($281 million) for the quarter, marking a 22% increase in losses compared to the previous year.

China Southern, the country’s largest airline in terms of capacity, reported a net loss of 747 million yuan for the first three months of this year. This contrasts sharply with the same quarter last year when they posted a profit of 756 million yuan.

China Eastern Airlines, headquartered in Shanghai, announced a quarterly net loss of 995 million yuan, which represents a 24% increase in losses year-over-year.

The airlines refrained from commenting directly on these financial results. However, last month they pointed to factors such as intense competition within the domestic market, weak international and business travel demand, supply chain disruptions, and currency devaluation as significant challenges to their business operations.