China’s Aviation Rebound: Major Airlines Return to Profit in Q3 Amid Domestic Travel Surge

In a promising sign of recovery for China’s aviation sector, three major airlines—Air China, China Southern Airlines, and China Eastern Airlines—have reported net profit gains in the third quarter of the year. This positive development, revealed in their quarterly reports on Friday, underscores the accelerating pace of recovery within China’s aviation industry, fueled by a surge in domestic travel.

Leading the growth, Air China reported a net profit of 4.24 billion yuan ($579.76 million) for the third quarter. Similarly, China Southern Airlines and China Eastern Airlines posted robust revenues of 4.19 billion yuan and 3.64 billion yuan, respectively. These better-than-expected results mark a significant turnaround, bringing the three major carriers back to profitability for the first time since 2019.

The positive Q3 performance helped Air China and China Southern Airlines achieve overall profitability for the first three quarters of the year, while also substantially narrowing China Eastern Airlines’ loss to 2.6 billion yuan—a remarkable 90 percent reduction compared to the same period last year.

Quarterly passenger traffic in the industry also reached a record high, reflecting the rebound in domestic travel. Chinese civil aviation recorded 180 million passenger trips in the third quarter, marking a remarkable 108.3 percent year-on-year increase. Notably, this figure surpassed pre-pandemic levels, with a 2.6 percent rise compared to the same period in 2019, according to data released by the Civil Aviation Administration of China (CAAC).

As the industry continues its resurgence, the upbeat outlook extends beyond the domestic market. Looking ahead to the winter and spring seasons of 2023-2024, there are expectations for a substantial increase in the number of regular passenger flights between China and the United States. The current 48 flights per week are projected to rise to 70 flights per week, further signaling the positive trajectory of China’s aviation recovery.