On the evening of July 14, China’s three major airlines collectively issued performance forecasts, expecting a cumulative net loss of over 4 billion RMB in the first half of 2025. Last year, the three major airlines accumulated a net loss of 6.1 billion RMB, indicating that China’s civil aviation industry continues to face severe challenges.
Specifically, Air China expects a net loss in the first half of the year to be between 1.7 billion and 2.2 billion RMB. Although the loss has narrowed compared to the 2.782 billion RMB loss in the same period last year, the company is still deeply mired in losses. Air China attributed this mainly to factors such as imbalances in market supply and demand, changes in customer structure, the impact of high-speed rail networks, increased international environmental uncertainty, and global industrial supply chain changes, leading to immense operational pressures.
China Southern Airlines is expected to incur a net loss of 1.338 billion to 1.756 billion RMB in the first half of the year, further widening the loss margin compared to the 1.228 billion RMB loss in the same period last year. The airline mentioned that factors such as changes in passenger structure, high-speed rail competition, international environmental instability, global supply chain disruptions, and currency fluctuations continue to negatively affect its operational performance.
China Eastern Airlines expects a net loss of 1.2 billion to 1.6 billion RMB in the first half of the year, a decrease from the 2.768 billion RMB loss in the same period last year. However, it is noteworthy that China Eastern Airlines has been incurring losses for five consecutive years (from 2020 to 2024), with a cumulative net loss exceeding 70 billion RMB. As of the end of the first quarter of this year, China Eastern Airlines’ total liabilities amounted to a staggering 244.9 billion RMB, with a debt-to-asset ratio soaring to 85.84%, indicating a very challenging financial situation.
It’s evident that the challenges faced by China’s aviation industry are complex and multifaceted. The ongoing shifts in the global economic landscape, coupled with domestic factors such as changing consumer preferences and fierce competition, have created a turbulent environment for these airlines. Despite efforts to mitigate losses and adapt to changing market conditions, the road to recovery for China’s major airlines remains arduous and uncertain.