Major Chinese airlines see significant reductions in losses in first half of 2023

(ECNS) - Three major Chinese airlines are expected to experience a combined loss of approximately 11.2 billion yuan to 14.1 billion yuan (around $1.56 billion to $1.97 billion) in the first half of 2023, a substantial decline compared to the 50 billion yuan (around $6.98 billion) loss recorded during the same period last year, latest company reports showed.

Air China, China Eastern Airlines and China Southern Airlines are expected to incur a net loss attributable to shareholders of approximately 3.2 to 3.9 billion yuan (around $446 million to 544 million), 5.5 billion to 6.9 billion yuan and 2.5 billion to 3.3 billion yuan, respectively.

Due to the positive trends of China’s economic growth, the demand for both domestic and international air travel has experienced a significant boost, leading to a recovery of air passenger volume, China Eastern Airlines said.

Seizing this opportunity, the three companies have expanded their transport capacity, implemented enhanced cost control measures and optimized their air routes and resource allocation, according to the reports.

Despite these efforts, the recovery of international airlines has fallen short of expectations, and the fluctuation of the Chinese yuan to the US dollar, combined with persistently high oil prices, has contributed to the financial losses experienced by the companies, they added.