< Reveal sidebar

Three Chinese Airlines Report Decline in Profits

A China Eastern 777-300ER in Los Angeles (Photo: AirlineGeeks | William Derrickson)

Following a rise in fuel prices and weak yuan, three major Chinese airlines: Air China, China Eastern Airlines and China Southern Airlines saw a sizable drop in profits from July to September.

The third quarter income of China Eastern Airlines was 33.45 billion yuan, a 13.5 percent gain in comparison to the same period last year but the profit has slumped 38 percent. The revenue for the first nine months of the year was 87.88 billion yuan and the profit was 4.49 billion, compared to last year, it has dropped 43.3 percent.

China Southern Airlines’ third quarter revenue was 41.33 billion yuan with a 15.4 percent rise, the profit was 2.38 billion but dropped 52.4 percent. The income of the first nine months was 108.8 billion yuan and the net profit was 4.17 billion, compared to the same period last year, it has dropped 40.8 percent.

The third quarter income of the flag carrier, Air China was 38.64 billion yuan, the net profit was 3.47 billion, a 30 percent drop over the same period last year. The total revenue of the first nine months was 102.88 billion with a 12.1 percent rise, the net profit was 6.94 billion and dropped 16.2 percent compared to last year.

The major impact to the airlines is that oil prices have surged 30 percent since this year. Of course, this is not only Chinese carriers’ problem as earlier this year, IATA expected the airline’s profit forecast for 2018 to decrease by 12 percent.

With no end in sight for the trade war between U.S and China, the profit expectations of Chinese carriers were not optimistic even with a huge public demand in the country.

Pete Ainsley

Author

Subscribe to AirlineGeeks' Daily Check-In

Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.

Related Stories
A WestJet Link Saab 340

WestJet Ending Link Regional Service, Transitioning Flights to Encore

WestJet has announced that it will be ending the WestJet Link regional brand and transitioning its flights to WestJet Encore.…

United Gets FAA Green Light to Again Certify Aircraft, Add New Routes

United can once ramp up the certification of aircraft and add new routes after a nearly two-month-long FAA-mandated pause due…

JAL Debuts New Special Livery for EXPO 2025

Japan Airlines (JAL) unveiled its special "JAL MYAKU-MYAKU JET" livery for international and domestic routes in celebration of the upcoming…