China’s 3 Biggest Airlines Head for Losses as Fuel Costs Bite and Exit Rules Tighten
The state-owned carriers lost money through September despite rising revenue, while Beijing’s new exit rules add uncertainty to their overseas business.
China’s three largest state-owned airlines experienced substantial financial losses in the first nine months of the year. Even the busy summer travel period did not alleviate their financial strain, leading to projections of full-year losses. Despite revenue increases, the airlines reported significant drops in net profit or even swung to losses compared to the previous year.
- China’s three biggest state-owned airlines are projected to incur full-year losses.
- The airlines lost money during the first nine months of the year, a period when they were profitable in the previous year.
- Air China’s third-quarter net profit dropped by 92.6% year-on-year.
- China Eastern’s third-quarter net profit fell by 98.2% year-on-year.
- China Southern reported a third-quarter loss of 609 million yuan, a reversal from a 3.84 billion yuan profit a year earlier.
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