Signs Before the Economic Collapse of National Airlines

According to news reported on July 15th, Air China announced that in the first half of 2022, the global aviation industry as a whole remained in a loss position due to the continued impact of the epidemic. The epidemic has spread in many areas resulting in a significant reduction in domestic routes, and international route investments continues to be limited. Air China is expected to have a net loss of about 18.5 billion yuan to 21 billion yuan in the first half of the year.

Meanwhile, China Eastern Airlines announced that it expects a net profit loss of about 17 billion – 19.5 billion yuan for the first half of the year.

For China Southern Airlines, net loss attributable to shareholders of listed companies is expected to be RMB10.2 billion to RMB12.1 billion for the first half of 2022. Spring Airlines announced that it expects a net loss of RMB 1.2 billion to RMB 1.3 billion for the first half of the year.

The mid-year statistics of the CCP’s civil aviation show that the number of international routes in the first half of this year is still limited, and the international air passenger market continues to slump. The ratio of domestic and international passenger traffic has changed from 8:1 before the epidemic to 202:1 now. Due to the strict implementation of the circuit breaker policy for international flights, as many as 990 international flights were interrupted in the first half of this year. The 2021 annual report shows that five airlines are already insolvent. The loss of air transport liabilities has only just begun.