Image: China Southern Airlines
Commercial
Aviation
/ China
operating loss
Chinese companies report their 2022 financial results
By: Rafael Ramos
On: 4/3/2023
Airbus A350-900
CC BY-SA 4.0, via wikimedia commons
China's three largest airlines, China Southern Airlines, China Eastern Airlines and Air China, reported their 2022 financial results.
In total, the loss of the companies reached US$ 15.8 billion, which represents almost three times (US$ 5.9 billion) the amount lost in 2021.
The increase in the number of cases of covid-19 in the country and the strong restrictions against the disease may be the main factors in the losses experienced by companies. Even companies that make only domestic flights suffered losses during the period of greater restrictions.
Other factors are also cited, such as the high price of fuel, the international geopolitical scenario and the conflicts between Russia and Ukraine.
In addition, official figures from the Civil Aviation Administration of China (CAAC) show that 252 million passengers were transported throughout 2022, a number 43% lower than in 2021. 99.3% of them were on domestic trips.
The company that posted the biggest losses was Air China, with total losses of US$5.6 billion. The accumulated damage in the pandemic years is already about US$ 10 billion.
China Eastern's loss was US$5.4 billion and China Southern's was US$4.8 billion.
The 3 companies are optimistic about the results that should arrive this year, as they expect a recovery for 2023.
Domestic flight numbers are already surpassing 2019 levels. However, international flights have only resumed this year, so even with the rapid recovery, they are only around 30% of what they were pre-covid.
Rafael Ramos
Aviation enthusiast from an early age, he had his first contacts with the area developing that good old habit of spending dozens of hours in front of the screens of Micrsoft Flight Simulator and other simulators. With a solid background in various technological areas, including engineering and chemistry, Rafael has rejoined aviation as editor and author of articles and materials on our portal, providing invaluable help to the dynamics and expansion of the website and the aeronautical community, bringing us the news and updates so indispensable for us to remain current in our area of operation.
   
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