China's Top Airlines Post Losses As Foreign Tourists Avoid Beijing

China's leading state-owned airlines posted losses for the first half of the year, hindered by a slower-than-expected rebound in international travel, domestic oversupply, and intensified global competition as aviation capacity returns, Reuters reporters Sophie Yu and Lisa Barrington wrote.

Air China, China Southern Airlines, and China Eastern Airlines, which last reported annual net profits in 2019 before the COVID-19 pandemic, all experienced losses. I Photo: Edwin Leong Wikimedia Commons

Air China, China Southern Airlines, and China Eastern Airlines, which last reported annual net profits in 2019 before the COVID-19 pandemic, all experienced losses.

Flagship carrier Air China posted a first-half net loss of 2.78 billion yuan ($392 million), an improvement from a 3.45 billion yuan loss in the same period last year.

China Southern Airlines reported a net loss of 1.23 billion yuan, narrowing from a 2.9 billion yuan loss a year earlier. The Guangzhou-based airline did report a 760-million-yuan profit in the first quarter.

Air China also noted that international traffic increased during the first half, with passenger numbers reaching over 80% of 2019's pre-pandemic levels, although recovery on North American routes was slow.