China's civil aviation industry has lost more than 420 billion yuan in four years, which has brought huge pressure to the entire industry.
In 2023, China's three major airlines, Air China, China Southern Airlines and China Eastern Airlines, finally showed significant performance improvements. Air China, one of China's largest airlines, has seen the biggest loss reduction, with an estimated 37.5 billion yuan, thanks to the outstanding performance of its stake, Cathay Pacific. However, on the air demand side, passenger traffic in 2023 recovered to 82% to 92% of 2019 levels, slightly lower than expected, and commercial routes recovered more slowly. This suggests that while capacity supply is recovering, aviation demand needs to be boosted further. In the three years of the epidemic, the cumulative loss of the civil aviation industry has exceeded 400 billion, and although the loss will be greatly reduced in 2023, it will still not be able to turn losses into profits, with a loss of 28.8 billion yuan in the whole industry, of which 17 billion will be lost by airlines. The number of civil aviation passengers, especially international passengers, has not yet recovered to pre-pandemic levels, which is one of the important reasons why airlines have not been able to turn around their losses. By the end of 2023, international flight volumes will only recover to 55 of the pre-pandemic level of 20198%。A large number of wide-body aircraft that were originally going to fly international flights were forced to return to China to grab the market, which further affected the revenue of the domestic market.
I hope that the civil aviation industry can get out of the predicament of losses as soon as possible, and I also hope that in the coming days, we can continue to pay attention to the development of the civil aviation industry.
Aerospace