Air China(SH:601111) Bei Jing Shang Bao·2026-01-30 15:21Core Viewpoint - The three major airlines in China, Air China, China Eastern Airlines, and China Southern Airlines, are expected to reduce losses in 2025, with China Southern Airlines achieving profitability for the first time, while the overall industry shows signs of recovery and growth [1][2][3]. Group 1: Financial Performance - China Southern Airlines is projected to achieve a net profit of 800 million to 1 billion yuan in 2025, marking a turnaround from previous losses [2][4]. - China Eastern Airlines and Air China are expected to incur net losses of 1.3 billion to 1.8 billion yuan and 1.3 billion to 1.9 billion yuan, respectively, but both are showing reduced losses compared to 2024 [2][4]. - The three airlines collectively expect to reduce losses by 3.259 billion to 4.559 billion yuan in 2025 [2][4]. Group 2: Operational Improvements - The airlines attribute their improved performance to several strategies, including optimizing route networks, precise capacity deployment, and strengthening cost control [5][6]. - The overall civil aviation industry in China is projected to complete a total transportation turnover of 1,640.8 billion ton-kilometers and carry 770 million passengers in 2025, reflecting a steady growth trend [5][6]. - China Eastern Airlines plans to open 24 new international routes in 2025, significantly expanding its global network [5][6]. Group 3: Market Dynamics - The recovery of international routes is crucial for improving airline performance, as it enhances the utilization of wide-body aircraft and alleviates domestic market competition [6]. - The Civil Aviation Administration of China emphasizes the need to address "involution" competition and promote consumption, which is expected to support the airlines' recovery efforts [6].