China’s big three airlines still in the red; Air China, China Eastern narrow deficits

China's three biggest airlines are expected to report losses for the first half of 2025.

Air China (0753) and China Eastern Airlines (0670) forecast narrower deficits, while China Southern Airlines (1055) anticipates a wider loss.

Air China, the country's flagship carrier, expects a net loss of up to 2.2 billion yuan (HK$2.41 billion) for the first six months, a year-on-year reduction of around 21 percent. 

The airline cited challenges including imbalanced market supply, declining passenger yield, competition from the expanding high-speed rail network, and growing uncertainties in the global environment and supply chains.

And Shanghai-headquartered China Eastern Airlines projected a net loss of up to 1.6 billion yuan, narrowing nearly 44 percent compared with the same period last year.

In contrast, China Southern Airlines, the country's largest carrier by capacity, expects to post a wider loss of up to 1.76 billion yuan, representing an increase of about 43 percent from a year ago.

Earlier, the three airlines reported a quarterly net loss of 2.04 billion yuan, 995 million yuan and 747 million yuan, respectively, for the first quarter this year.

STAFF REPORTER