Mei Ri Jing Ji Xin Wen·2025-11-03 13:36Core Viewpoint - The domestic civil aviation industry in China is expected to turn profitable in 2024, with the three major state-owned airlines (Air China, China Eastern Airlines, and China Southern Airlines) achieving profitability in the first three quarters of 2025 after years of losses [1][3]. Group 1: Financial Performance of Major Airlines - All three major state-owned airlines reported revenue growth and profitability in the first three quarters of 2025, benefiting from the summer travel peak and foreign exchange gains [2]. - Air China achieved a net profit of 1.87 billion yuan in the first three quarters, while China Eastern Airlines and China Southern Airlines reported net profits of 2.10 billion yuan and 2.31 billion yuan, respectively [3]. - The three major airlines had accumulated losses exceeding 200 billion yuan over the past five years, but signs of recovery are evident, with expectations for profitability in 2025 [3]. Group 2: International Market Growth - The international market has become a key growth area for major airlines, with significant increases in passenger turnover on international routes compared to domestic routes [4]. - For the first nine months of the year, Air China, China Eastern Airlines, and China Southern Airlines reported international passenger turnover growth rates of 14.9%, 24.16%, and 19.54%, respectively, compared to domestic growth rates of 1.2%, 6.08%, and 4.10% [4]. - China Eastern Airlines has been actively expanding its international routes, including the launch of a new route from Shanghai to Buenos Aires, which will set a record for the longest single-route flight [4]. Group 3: Challenges Faced by Private Airlines - Private airlines such as Spring Airlines and Juneyao Airlines reported declines in net profit for the first three quarters, with Spring Airlines losing its title as the "most profitable airline" to Hainan Airlines [6]. - Despite increased flight and passenger volumes, many airlines are struggling to achieve profitability due to lower ticket prices driven by intense competition and market dynamics [7]. - The average ticket price has decreased significantly, with a drop of over 20% in February and more than 8% during the peak summer months, impacting overall profitability [7][8].