2 1 Shi Ji Jing Ji Bao Dao·2025-09-10 11:16Core Insights - The Chinese civil aviation market is experiencing growth in transport scale, with key indicators such as total turnover, passenger transport volume, and seat occupancy rate showing year-on-year improvements, despite ongoing over-competition and a complex demand environment [1][4] - The domestic market is characterized by a "volume increase and price drop" phenomenon, leading to a decline in operational revenue for most airlines on domestic routes [1][4] - In the international market, airlines have increased capacity on international routes, resulting in a significant rise in passenger turnover, although some airlines have seen a decrease in revenue per passenger kilometer [1][8] Domestic Market Performance - The overall performance of the domestic market shows a trend of "volume increase and price drop," with the average economy class ticket price dropping by 6.9% year-on-year to 740 yuan [4][5] - Major airlines have adjusted their capacity, with China Eastern and China Southern increasing domestic capacity by 1.07% and 0.44%, respectively, while Air China reduced its capacity by 1.26% [5][7] - The domestic passenger transport volume increased by 3.9%, but operational revenue for most airlines declined due to falling ticket prices [4][5] Financial Performance of Major Airlines - China Southern Airlines reported revenue of 86.291 billion yuan, a year-on-year increase of 1.77%, but a net profit loss of 15.33 billion yuan, widening by 24.84% [3][2] - China Eastern Airlines achieved revenue of 66.822 billion yuan, a 4.09% increase, with a net profit loss of 14.31 billion yuan, improving by 48.30% [3][2] - Air China generated revenue of 80.757 billion yuan, a 1.6% increase, with a net profit loss of 18.06 billion yuan, improving by 35.11% [3][2] International Market Expansion - The international market saw a net increase of 123 international routes, with passenger transport volume growing by 28.5% year-on-year, surpassing pre-pandemic levels [8][9] - Major airlines increased their international capacity significantly, with China Eastern, China Southern, and Air China raising their capacity by 24.38%, 22.5%, and 16.7%, respectively [8][10] - Despite a decline in revenue per passenger kilometer, international passenger revenue for China Southern and Air China increased by 15.74% and 16.09%, respectively [8][10] Strategic Focus and Market Trends - Airlines are focusing on expanding international routes, particularly in Northeast Asia and Southeast Asia, with significant capacity increases noted for Spring Airlines and others [11][12] - The industry is witnessing a shift towards more structured competition, with the introduction of self-regulatory agreements aimed at curbing price dumping and promoting healthy market practices [7][8] - Domestic airlines are enhancing their route networks, particularly in the Yangtze River Delta region, to improve connectivity and operational efficiency [12][13]