China's Airlines Struggle Amid International Travel Slump

China's state-owned airlines have reported significant losses in the first half of the year, due to a slow rebound in international travel, domestic oversupply, and increased competition. Air China, China Southern Airlines, and China Eastern Airlines have all experienced reduced profits compared to pre-pandemic levels, with Air China's North American routes particularly slow to recover.

China's leading state-owned airlines have reported significant losses for the first half of the year, hindered by a sluggish international travel recovery, domestic oversupply, and increased competition as global aviation capacity normalizes.

Air China, the country's flagship carrier, posted a net loss of 2.78 billion yuan ($392 million) for the first half, an improvement from the 3.45 billion yuan loss in the same period last year. Meanwhile, China Southern Airlines reported net losses of 1.23 billion yuan, down from 2.9 billion yuan a year earlier. The Guangzhou-based airline did, however, achieve a 760 million yuan profit in the first quarter.

International traffic for Air China grew in the first half, with passenger numbers at more than 80% of 2019's pre-pandemic levels. However, recovery on traditionally strong North American routes remains slow due to political issues and low demand. Outbound traffic from China is growing, but international travel recovery lags behind expectations amidst a faltering economy and a shift toward domestic travel.

(With inputs from agencies.)