What’s new: Chinese airlines reported an improved performance in the first quarter as the passenger transport business continued its revival.
China Southern Airlines Co. Ltd. (600029.SH) became the first among the big three state-owned airlines to return to profit since the pandemic, posting a first-quarter net profit of 756 million yuan ($104 million), compared with a net loss of 1.9 billion yuan ($262 million) in the same period last year. Both Air China Ltd. (601111.SH) and China Eastern Airlines Corp. Ltd. (600115.SH) have also seen their losses narrow.
Air China reported a 59.8% growth in first-quarter revenue, with a net loss of 1.7 billion yuan, compared with 2.9 billion yuan a year ago. China Eastern saw its net loss reduced from 3.8 billion yuan to 803-million yuan, with revenue surging by 49%.
Four publicly traded private airlines have all reported more than 100% growth in first quarter profit, their financial reports showed.
The context: China’s civil aviation industry has gradually recovered since the country fully exited three years of strict pandemic control in early 2023. In the first quarter of 2024, Chinese travelers made 180 million trips, a record high for the quarter and a 37.7% year-on-year increase, according to the Civil Aviation Administration of China (CAAC).
Domestic trips increased 14.3% from the same period of 2019, while international traffic recovered to 78% of the pre-pandemic level, CAAC data showed.
Airlines remain under profitability pressures, however, due to rising oil costs and increasing competition which brings down ticket prices, industry analysts said.
Contact reporter Han Wei (weihan@caixin.com)
