Recently, the semi-annual reports of A-share listed airlines have been disclosed. The data shows that private listed airlines are generally profitable, while the three major state-owned airlines are still in deficit. In the continuing sluggish economic environment in mainland China, many airlines have resorted to lowering services at the expense of survival, even employing “mixing passengers and cargo,” which has been criticized by passengers.
According to a report by “First Financial” on August 30, the financial reports of various airlines in the first half of 2025 were reviewed. The three major state-owned airlines – Air China, China Eastern Airlines, and China Southern Airlines – still incurred losses of 1.806 billion yuan, 1.441 billion yuan, and 1.533 billion yuan respectively.
In stark contrast, private listed airlines are generally profitable. Spring Airlines, known as the “budget airline” by passengers, with a revenue of 10.304 billion yuan and a net profit of 1.169 billion yuan, became the most profitable listed airline in mainland China in the first half of the year.
The analysis by “First Financial” suggests that the performance gap between airlines is directly related to slow recovery of international routes and continued competition in the domestic market. The three major airlines have a high percentage of international routes and are facing pressure on ticket prices and revenue due to the incomplete recovery of the international market.
In contrast, private airlines such as Spring Airlines and Juneyao Airlines mainly focus on neighboring markets such as Japan and South Korea. They have quickly recovered and can adjust capacity flexibly to minimize losses. According to Spring Airlines’ semi-annual report, the capacity deployed on its Japan routes increased by 116.8% compared to the same period last year, growing by 77.7% compared to 2019, becoming a key pillar of profitability.
Looking at the disclosed semi-annual reports, data representing revenue per passenger kilometer, a few listed airlines saw year-on-year declines. Even Spring Airlines, with its low fare advantage, experienced a 4.8% year-on-year decline in revenue per passenger kilometer on domestic routes.
Cost control has become the key to performance or survival under declining revenue.
Recently, there have been complaints about Spring Airlines’ cabin air conditioning being too cold on social media platforms, with passengers asking for blankets to keep warm being told they would have to pay 15 yuan each. This incident quickly sparked discussions among consumers online.
In fact, Spring Airlines’ low-cost operating model has always been controversial. There are a total of 16,790 consumer complaints under the Spring Airlines entry on the Black Cat Complaints Platform, with complaints focusing on unreasonable ticket change and refund fees, arbitrary baggage handling fees, post-purchase service evasion, and onboard sales by flight attendants.
Spring Airlines is positioned as a low-cost airline known as the “budget airline” by passengers. The airline only offers a single economy class, without first class or business class, which allows for 10% to 15% more seats on board. By eliminating meal services, free baggage, and other traditional passenger services, Spring Airlines keeps operating costs lower than regular airlines, enabling long-term offering of cheap ticket prices.
However, complaints about Spring Airlines are frequent on major social media platforms: the non-adjustable seats make long-haul passengers uncomfortable, strict baggage allowances require additional payment for even minor excess, and continuous onboard sales by flight attendants. Spring Airlines’ “penny-pinching” operating strategy is eroding consumer trust.
To reduce costs, some airlines have started to emulate Spring Airlines. In an April report by the WeChat public account “Phoenix WEEKLY,” Southern Airlines, one of the three major airlines, introduced a new batch of “hard seats” on its planes. These “lightweight” or “blade” seats replaced the previous thick backrests. The most uncomfortable aspect for passengers was the significant simplification of the headrest portion of the seats.
Passengers generally commented that the new backrests were too hard, the new seat cushions were uncomfortable, the seat spacing was too narrow, hindering leg movement, and prolonged sitting resulted in stiff back and cramped legs.
Despite Southern Airlines lowering ticket prices, many passengers are reluctant to comply and even jokingly refer to it as “Southern Budget Airlines.”
This situation reflects the various airlines’ cost-cutting measures in different aspects.
Reports from “Phoenix WEEKLY” indicate that in recent years, airplane meals have become lackluster, with aircraft meals consisting of four buns and one slice of cabbage. Airport lounges and check-in counters have significantly reduced services. Free checked baggage allowances have been eliminated. Online check-in now requires payment for seat selection. Various services have been downgraded or removed, leaving only the robust ticket prices themselves.
“Phoenix WEEKLY” suggests that looking at the financial condition of the three major airlines in recent years, one can understand why these old-established airlines are gradually transitioning into “budget airlines,” as cost-cutting in operations has become inevitable.
The WeChat public account “Temperature Record” believes that these pseudo-budget airlines maintain unified and not particularly low prices, cut services, are not true budget airlines but are almost indistinguishable from them. Qin Cai (alias) said, “If this is considered a budget airline, then I find it hard to criticize. I would even appreciate it if they offer water for free, but now the prices are almost as high as the three major airlines.”
Passengers refer to these airlines as pseudo-budget airlines because they do not explicitly position themselves as budget airlines like Spring Airlines but, in practice, through service reductions and added hidden fees, strive to compress the flying experience while maintaining ticket prices close to full-service airlines.
The WeChat account “Electronic Factory Pro” indicates that these airlines have clear ticket pricing but provide service like guerrilla warfare. They may appear as “full-service airlines” on the surface, but services have quietly retreated backstage.
“Temperature Record” further states that when “survival” becomes the top priority for airlines, passenger comfort becomes the first number to be zeroed out in the total data.
Many consumers who do not frequently travel, referred to as “holiday tourists” by a WeChat public account, don’t know how to purchase suitable tickets under unequal information. In this situation, they end up paying high prices for low-service and low-cost airline flights.
This approach seems to be working well for airlines in terms of survival. During the May Day holiday, Qin Cai flew with Longjiang Airlines, and official website data showed that the airline had nine A320/A321 aircraft, including 2 A321s and 7 A320s. With such a small fleet, the airline achieved a 31.1% growth in the first quarter of 2025.
The WeChat account “Intelligence Tax Research Center” believes that such practices may lead to unexpected costs for passengers far exceeding expectations while experiences fall below the standard of full-service airlines. While temporarily increasing revenue, airlines risk damaging their brand reputation.
These extreme cost-cutting measures are likely to prompt many passengers to silently blacklist the airlines in their minds.
The news of pilots delivering takeout is not unfounded. According to the WeChat public account “Electronic Factory Pro,” pilots are seen to bring passengers during flights and deliver goods after landing, resembling a part-time activity in the air. It is evident that even for pilots, earning money is not easy.
In short-haul flights in China, some airlines resort to passenger-cargo mixed operation to boost revenue. This involves transporting lightweight cargo in the cargo hold, compressing passenger luggage space, and sometimes fixing transported goods directly onto passenger seats, making passengers feel like passive companions to the cargo, which takes the lead.
A passenger who boarded a short-haul flight with Happiness Airlines shared, “There was no one beside me, just bags and goods, all strapped in the seat belt. Just like people, halfway through the flight, the bags would lean over, and the flight attendants would come to straighten them out.”
Thinking they booked a full-service flight, passengers only discovered pre-flight that even water needed to be scanned, keeping the attendants busier managing passenger needs while monitoring the cold chain. One passenger jokingly said, “The elevators in the neighborhood are regularly out of service, so we can only use the goods elevator. Now, it’s like sitting in the ‘cargo hold’ when flying, which makes sense.”
According to the reporting by “Electronic Factory Pro,” airlines used to profit from people, but now rely on cargo for survival. Thus, you see the gradual dimming of services on regional flights, with seats unable to recline, airplane meals shrinking, and even errors in flight announcements, all because the focus seems to have shifted away from passenger experience to cargo efficiency.