China’s three major state-owned airlines have recently released their latest financial results, showing a worsening of losses in the first quarter of this year. Air China reported a net loss of 2.044 billion yuan, China Eastern Airlines had a net loss of 995 million yuan, and China Southern Airlines reported a net loss of 747 million yuan.
On April 29, Air China announced that its operating income in the first quarter of 2025 was 40.023 billion yuan, a year-on-year decrease of 0.11%. The net loss attributable to the company’s shareholders was 2.044 billion yuan, compared to a net loss of 1.674 billion yuan in the same period last year, representing a 22.07% increase in losses. The basic earnings per share were -0.12 yuan.
In terms of assets, the company’s total assets at the end of the reporting period were 345.163 billion yuan, with accounts receivable amounting to 3.854 billion yuan. In terms of cash flow, the net cash flow generated from operating activities was 8.341 billion yuan, with cash received from selling goods and providing services amounting to 40.353 billion yuan.
According to a comprehensive analysis and tracking by the financial diagnosis model of Tonghuashun on more than 1,200 financial indicators of the current period and the past five years, Air China’s overall financial condition has been below the industry average in the past five years. The current overall score is 1.27, ranking at the bottom among the 13 companies in the airport transportation industry.
China Eastern Airlines announced that its operating income in the first quarter of 2025 was 33.406 billion yuan, a year-on-year increase of 0.65%. The net loss attributable to the company’s shareholders was 995 million yuan, compared to a net loss of 803 million yuan in the same period last year, representing a 24% increase in losses. The net cash flow generated from operating activities was 2.39 billion yuan, a 49.56% decrease compared to the previous year, mainly due to intensified competition in the aviation market leading to a decline in revenue levels.
China Southern Airlines announced that its operating income in the first quarter of 2025 was 43.407 billion yuan, a year-on-year decrease of 2.68%. The net loss was 747 million yuan, compared to a profit of 756 million yuan in the same period last year. The net cash flow generated from operating activities was 4.432 billion yuan, a 54.67% decrease compared to the previous year. The performance in the reporting period declined year-on-year due to multiple factors such as changes in passenger structure, impact from high-speed rail, tense global supply chains, and depreciation of the renminbi.
Facing challenges such as fierce competition in the domestic market, low demand for international and business travel, supply chain issues, and currency depreciation, the three major state-owned airlines in China have experienced annual losses for five consecutive years. This trend is indicative of the ongoing challenges and uncertainties in the aviation industry, both domestically and globally, impacting the financial performance of these airlines.