A-share airport airlines have announced their performance forecasts for the first half of the year, indicating a positive outlook for the recovery of China’s civil aviation industry. In July, seven A-share airlines, including China Southern Airlines, Air China, China Eastern Airlines, Spring Airlines, Juneyao Airlines, China Express Airlines, and HNA Holdings, disclosed their performance for the first half of the year, showing better results compared to the same period last year. Spring Airlines and Juneyao Airlines, in particular, turned losses into profits and led the way in achieving profitability.
Overall, the seven A-share airlines are expected to have a combined net loss of 12.3 billion to 16.4 billion yuan in the first half of this year. This represents a significant reduction in losses compared to the first half of last year when the total net loss was around 66.6 billion yuan. The three major state-owned airlines, namely China Southern Airlines, Air China, and China Eastern Airlines, also reported reduced losses compared to the same period last year. China Southern Airlines expects a net loss of 2.5 billion to 3.3 billion yuan, improving from a net loss of 11.488 billion yuan in the first half of last year. Both Air China and China Eastern Airlines stated that they are still experiencing losses due to lower-than-expected recovery of international routes and exchange rate fluctuations.
The development of the civil aviation industry in 2023 has been focused on reducing losses and overcoming difficulties. The industry faced significant challenges in 2022, with annual losses reaching 216 billion yuan, surpassing the losses of the previous two years combined. However, the three major airlines have made remarkable progress in reducing losses in the first half of this year. Private airlines Spring Airlines and Juneyao Airlines, based in Shanghai, also achieved profitability. Spring Airlines expects a net profit of 650 million to 850 million yuan, a significant improvement from a loss of 1.245 billion yuan in the same period last year. Juneyao Airlines anticipates a net profit of about 55 million to 80 million yuan, compared to a net loss of nearly 1.9 billion yuan in the same period last year.
Furthermore, airport listed companies such as Shanghai Airport, Baiyun Airport, and Xiamen Airport also reported positive performance forecasts for the first half of the year, signaling the recovery of the aviation industry in China. The civil aviation industry has seen significant improvement since the beginning of this year, and it has now returned to pre-pandemic levels. In the second quarter of this year, there has been an increase in passenger flights, and the industry has entered the traditional peak season of summer transportation. Major airlines have expressed optimism for the summer transportation market and have increased their capacity to capitalize on the industry opportunity.
The positive performance forecasts of A-share airport airlines provide confidence in the recovery of China’s civil aviation industry. With the ongoing rebound in passenger flights and the steady recovery of domestic and international routes, the industry is poised for further growth in the coming months.