China’s Big Three reduce losses but international recovery lags behind

China’s Big Three

airlines – Air China, China Southern, and China Eastern – all have now reported their half-year 2023 results. The picture that emerges is that all three have significantly reduced their losses, but have some way to go until they are out of the woods of the pandemic. And there are concerns about how the Chinese domestic and international markets are developing.

Air China:

Air China was the last of the three to release its numbers and reported an RMB -4.094 billion net loss attributable to shareholders, compared to RMB -22.214 billion in the first six months of 2022. Revenues improved to RMB 59.613 billion from RMB 23.953 billion, which together with other income add up to a total income of RMB 63.683 billion versus RMB 25.400 billion last year.

Operating expenses increased to RMB 64.581 billion from RMB 42.373 billion, with increases on all items that can be attributed to higher production during the period. Expenses also include a combined RMB 102 million in impairment losses on property and credits. The operating loss was down to RMB -898.2 million from RMB -16.973 billion. Cash and cash equivalents stand at RMB 26 billion, and total liabilities at RMB 31.2 billion.