China’s Top Three Airlines Head for Full-Year Losses as Fuel Costs Weigh
Analysts said the carriers remain under pressure as jet fuel costs spike and domestic fares stay weak, with all three posting nine-month losses.
- China's three largest airlines are on track for full-year losses after posting weak third-quarter results, as surging jet fuel costs and soft domestic fares hit their normally most profitable period.
- Jet fuel prices have more than doubled since the US and Israel launched a military campaign against Iran in late February, leaving Chinese carriers exposed as they hedge far less fuel than Asian and European peers.
- Air China's net profit fell 92.6% to 270.6 million yuan, while China Eastern's profit dropped 98.2% to 64 million yuan; China Southern swung to a third-quarter net loss of 609 million yuan.
- Nathan Gee, head of Asia-Pacific transport research at BofA Global Research, expects Chinese airlines to remain in net loss into the seasonally weaker fourth quarter, citing extreme pressure from spiking jet fuel and soft consumption demand.
- Air China and China Eastern are heading for a seventh consecutive annual net loss since the COVID-19 pandemic, according to LSEG analyst estimates, while shares of all three carriers have dropped between 38% and 46% this year.
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China's largest airlines recorded a weak third quarter, despite the high travel season, as fuel costs shot in the middle of the conflict in the Middle East, leaving companies on the way to record losses in the year's accumulated. Exclusive material for subscribers. To have full access, access the material link and register.
The three major airlines in China are heading for a new year of losses, after having recorded much weaker results in the third quarter compared to last year, even if this is usually their most profitable period, reuters transmits. Problems have come to the bottom of rising fuel costs for aircraft, aircraft and aircraft.
China’s top three airlines head for full-year losses as fuel costs weigh - Regional Media News
By Sophie Yu and Julie Zhu BEIJING/HONG KONG, Nov 2 (Reuters) - China's three biggest airlines are on track for full-year losses after posting far weaker third-quarter results than last year as surging jet fuel costs, weak domestic fares and typhoon disruptions hit what is normally their most profitable period. Air China and China Eastern Airlines are heading for a seventh consecutive annual net loss since the COVID-19 pandemic, according to ana…
China's 3 biggest airlines slip into losses as jet fuel prices more than double
China's leading airlines are experiencing significant financial losses amid rising jet fuel prices and weak domestic fare competition. Air China and China Eastern are expected to report their seventh consecutive annual net loss since the pandemic began. China Southern, after a brief return to profitability, is also projected to return to losses. Analysts indicate that the fourth quarter may continue to be challenging due to high operational expe…
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