AsianFin -- China’s three largest airlines remained unprofitable in 2024, despite significantly reducing their losses, as intense competition and weak business travel demand weighed on financial recovery.
Air China, the country’s flag carrier, cut its net loss by 77% to 237.3 million yuan ($32.7 million) for the year ending Dec. 31, 2024, the airline announced on March 27. Revenue surged 29% to 166.7 billion yuan ($23 billion).
China Eastern Airlines and China Southern Airlines also reported smaller losses of 4.2 billion yuan ($579 million)and 1.7 billion yuan ($234.4 million), respectively, improving by 48% and 60% from the previous year. Their revenue climbed 16% to 132.1 billion yuan and 8.9% to 174.2 billion yuan, respectively.
Even though China Southern’s load factor increased to 84.4% in 2024, up from 78.1% in 2023, its revenue per passenger-kilometer (RPK) dropped to 48 yuan cents (7 U.S. cents) from 55 yuan cents. Similarly, Air China and China Eastern saw their RPK decline by 12% and 14% to 53 yuan cents and 51 yuan cents, respectively.
The struggles reflect broader challenges in China’s aviation industry. While passenger numbers hit a record high in 2024, average economy-class fares and revenue per kilometer dropped by 10% and 13%, respectively, according to Civil Aviation Administration of China (CAAC) data.
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