Chinese airlines' losses finally started to decline after the end of the pandemic
China's three largest airlines remained in the red in the second quarter, although losses were significantly reduced compared to the previous three months as the domestic airline market recovery gained momentum.
The end of the three-year COVID-19 pandemic has provided a boost to China's travel industry, with analysts predicting that the three major state-owned carriers could return to profit in the second half of this year, halting a series of large losses, Market Screener writes.
Air China, the country's leading carrier, reported a loss of 0.6 billion yuan ($82.32 million) for the second quarter, down from 2.9 billion yuan in the previous quarter.
China Eastern Airlines Corp Ltd reduced its losses in the second quarter to 2.4 billion yuan from 3.8 billion yuan in the first quarter.
China Southern Airlines Co Ltd reported a quarterly net loss of 1.0 billion yuan, compared to a net loss of 1.9 billion yuan in the first three months.
HSBC Global Research predicts that the three state-owned carriers could generate 10.4 billion yuan in profit in the second half of 2023 thanks to news that China has lifted pandemic-era restrictions on group tours for more countries.