China's Big Three
Geared for Re-opening — December 2022

The three national flag carriers of China — Air China, China Southern and China Eastern — seem to have had as tough a time as any airline through the pandemic. In 2020 and 2021 the three airline groups reported total losses of RMB‌(40)bn (US$6bn) on revenues 40-50% down from 2019 levels giving negative net margins of 18%. And in the first nine months of 2022 they reported a further RMB‌(80)bn loss on even lower revenues — a negative margin of 54%.

But unlike their peers elsewhere in the world, the three have not felt the need to react to the crisis with extensive restructuring.