China’s three largest airlines – Air China, China Eastern, and China Southern – have returned to profit after a year of heavy losses, buoyed by a record summer travel boom that lifted passenger revenues nationwide. The rebound marks a major turnaround for China’s aviation sector, which has struggled since the pandemic.
In the third quarter, Air China led with a 4.14 billion yuan profit, while China Eastern and China Southern posted 3.53 billion yuan and 3.84 billion yuan, respectively. The carriers benefited from strong domestic tourism and expanded international routes. However, analysts warn that the recovery may prove short-lived as oversupply, falling fares, and a slowing economy weigh on margins.
Challenges persist: domestic demand is cooling, international capacity remains below pre-pandemic levels, and China’s economic slowdown threatens long-term stability. Still, strategic cost management, capital raising, and aircraft modernization – including the C919 jet rollout – could help the airlines sustain momentum and navigate turbulent market conditions.