Foreign media reported on March 30 that the three major airlines of Communist China—Air China, China Southern, and China Eastern Airlines—have suffered severe losses in the past two years. A recently released annual report shows all three major airlines lost more than 10 billion yuan in 2021, much worse than in 2020.
China Eastern Airlines, headquartered in Shanghai reported a net loss of $12.2 billion yuan in 2021. The airline also faced regulatory scrutiny after the crash of a Boeing aircraft last week. More than 200 planes have been barred from taking off. Beijing-based Air China has a net loss of 16.6 billion yuan in 2021 while China Southern Airlines reported a loss of 12.1 billion yuan for the same period.
Foreign media believe that the three major airlines’ loss is due to the CCP’s harsh epidemic lockdowns which have hit the domestic tourism market hard, causing more than 2/3 of their planned flights to be canceled. In addition, skyrocketing fuel prices due to the Russia-Ukraine war have also increased variable costs for the airlines.