China's three major airlines lose $7.24 billion in first half of 2022

(ECNS) -- The three major airlines in China have lost nearly 50 billion yuan ($7.24 billion) in the first half this year, according to the lasted financial reports released by Air China, China Eastern Airlines, and China Southern Airlines.

In the first half, Air China achieved a revenue of about 23.953 billion yuan ($3.47 billion), a year-on-year decrease of 36.4percent; the net profit loss attributable to shareholders of the listed company was about 19.435 billion yuan.

In the same period, China Eastern Airlines achieved a revenue of 19.354 billion yuan, a year-on-year decrease of 44.24 percent; the net profit loss attributable to shareholders of listed companies was about 18.736 billion yuan.

Meanwhile, China Southern Airlines achieved a revenue of about 40.817 billion yuan, a year-on-year decrease of 20.86 percent; the net profit loss attributable to shareholders of the listed company was about 11.488 billion yuan, a year-on-year increase of 145.05 percent.

The three airlines attributed the loss to the economic situation, the COVID-19 pandemic, oil prices, exchange rates, etc.

China Eastern Airlines said that in the first half of the year, affected by multiple pressures such as the epidemic, international geopolitical conflicts, and economic downturn, the domestic civil aviation industry suffered a serious downturn.

From mid to late March to the end of May, Shanghai, where the company’s main market is based, experienced a serious pandemic outbreak. The number of passenger flights at the two major airports, namely, Hongqiao and Pudong, decreased sharply, which had a serious impact on the company’s operation.

Repeated epidemics, higher oil prices, and devaluation of the RMB had a major impact on China's civil aviation industry in the first half of the year, according to China Southern Airlines.

Air China believed that in the first half of the year, with other variables unchanged, the average jet fuel price increased by 5 percent, leadingto an increase of the company's jet fuel cost by about 517 million yuan.

As of Wednesday, the share price of China Eastern Airlines remained unchanged from the previous trading day, China Southern Airlines fell 1.08 percent, and Air China, 1.34 percent.