China's three biggest airlines, China, China, China Eastern Airlines and China Southern Airlines, are hoping to extend their post-pandemic loss streak over the first half of the year, as they denounced rafts of economic and geopolitical challenges.
Of the three, only southern China expects a sharp loss for six months between $1.34 and $17.6 billion ($187-$246 million), compared to a net loss of $12 billion in the same period last year.
In contrast, Air China and China Eastern are expected to significantly narrow their six-month losses. Beijing-based Air China forecasts a net loss between CNY 1.7 and $2.2 billion, compared to a six-month net loss in 2024, with almost $2.8 billion.
Meanwhile, Chainaistan expects a net loss of between $1.12 and $1.6 billion, down from the $2.8 billion loss posted last year.
The Big Three poses several key challenges in their financial forecasts despite seeing “sound growth” in their domestic business.
Air China says “enhanced efforts” to improve their operations, such as aircraft use and stricter cost control, are being affected by other challenges, such as a “down shift in passenger demographics” and “deepening uncertainty” in global geopolitics.
This sentiment is reflected in southern China, which flagged “slowing global supply chains” and “an increasing number of uncertain factors in the international environment.”
China Eastern points out two important factors: “There is “fierce price competition” among domestic operators and “a complex and unstable international environment.”
This is despite efforts to enhance cost management and international expansion into “positive momentum” and “emerging markets” of the domestic network.
The three airlines are one of the few global operators to remain red in postpartum income. In past results, the “Big 3” has condemned domestic and international recovery and competition imbalances due to its losses.
