Travel demand remains resilient, passenger traffic on international routes is growing, and listed airlines are seeking to turn increased passenger flow into profit improvements. According to the data, the revenue of listed airlines all increased year-on-year in the first three quarters, but the pressure on the cost side was prominent, and the industry showed a situation where revenue growth did not increase profits. According to Wind data, the total revenue of Air China, China Eastern Airlines, and China Southern Airlines in the first three quarters was 140,963 billion yuan, 117.066 billion yuan, and 147.212 billion yuan respectively, up 8.58%, 10.01%, and 6.94% year-on-year respectively. In the same period, the net profit of the three companies lost 2,015 billion yuan, 2,115 billion yuan and 4.305 billion yuan respectively, all of which changed from profit to loss over the same period last year. Entering the fourth quarter, supply adjustments, some market ticket price improvements, and refined cost reductions provided positive factors for operational restoration, but the restoration is still in its early stages. Spring Airlines and HNA Holdings recently revealed in exchanges with agencies that changes in international market performance, capacity investment efficiency, and customer base structure have become business concerns. Whether the travel dividend can be further realized still depends on the dynamic balance of demand, ticket prices, and costs.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.