China’s three largest airlines, boosted by the recovery of the domestic travel market, all returned to profitability in the third quarter.
Now they’re also looking for more traction abroad, including one offering an eye-popping, all-you-can-fly deal to help revive international demand.
China Southern Airlines Co.’s net profit of 4.2 billion yuan ($574 million) in the quarter compared with a net loss of 6.10 billion yuan a year earlier. Shanghai-based China Eastern Airlines Corp. said its profit was 3.64 billion yuan, versus a year-ago loss of 9.38 billion yuan. Flag carrier Air China Ltd.’s net profit of 4.24 billion yuan followed a loss of 8.67 billion yuan in the same quarter last year.
All three were still reporting losses halfway through 2023.
They collectively pointed to the recovery of the passenger market — with more travelers and higher prices — as the main reason for the turnaround.
Read More: Air Travel Finally Escapes Pandemic, With Turbulence Ahead
“Boosted by the increase both in passenger load factor and air fares, the company substantially reduced losses and increased profits in the quarter,” Beijing-based Air China said in a stock exchange filing.
The Chinese market saw strong demand in the third quarter, which encompasses the peak summer travel season and the Golden Week holiday that started at the end of September. A record 180 million trips were made during the three months, representing growth of 108% from a year earlier.
Read More: China’s Air Passenger Traffic Just Hit a Quarterly Record
Numbers were also 2.6% higher than the same period in 2019, according to the Civil Aviation Administration of China.
International Options
An increase in demand for international flights during the remainder of the year would be a boost, as recovery rates have lagged the growing domestic market.
A total of 16,680 weekly international flights by 150 carriers have been approved for the winter-spring season, which started Sunday, including cargo flights, according to the CAAC. The approval covers 13,004 weekly passenger flights, about 71% of the 2019 level. According to the regulator, international passenger flights have stayed at more than 50% of the 2019 level recently.
Read More: China Outbound Travel May Take Another Year to Fully Recover
With more capacity added to overseas routes, carriers are turning to sales promotions. Guangzhou-based China Southern recently announced an all-you-can-fly offer for the winter-spring season, giving customers unlimited flights to destinations mainly in Asia, including Tokyo and Bangkok, for as little as 1,999 yuan.
The deal, which is valid from November to the end of February, is intended to help bring in business during a typically slower season for air travel.
--With assistance from Danny Lee.
