(Yicai) Oct. 27 -- Air China’s shares rose after the flagship carrier swung back into the black for the first time since the pandemic began almost four years ago thanks to the ongoing recovery in travel.

After jumping by as much as 3.6 percent in Shanghai this afternoon, Air China [SHA: 601111] ended 2.8 percent up at CNY7.73 (USD1.06) a share.

Net profit was CNY4.2 billion (USD574 million) in the three months ended Sept. 30, the Beijing-based firm’s earnings report showed late yesterday. That helped it to turn a CNY791 million (USD108 million) profit in the first nine months, following a first-half loss. Nine-month revenue soared 151 percent to CNY105.5 billion (USD14.4 billion) from a year ago.

The peak season for air travel in July and August was the main reason Air China for the return to profit. Pent-up demand was unleashed over the summer months, with passenger numbers climbing 7.4 percent from the level of 2019 to a record high 130 million, according to data from the Civil Aviation Administration.

Fourteen Chinese airlines had a net profit in the first nine months, reporting a combined CNY9.6 billion (USD1.3 billion), an increase of CNY137.5 billion from a year earlier, the China Air Transport Association said at a performance conference on Oct. 11. 

With the accelerating recovery of international air passenger markets in the second half, the supply-and-demand relation will be further optimized, helping airlines to hike ticket prices, market insiders predicted. On the premise that global oil prices do not see a great increase and the Chinese yuan does not further weaken against the US dollar, more domestic airlines will turn a profit this year, they added.

Industry insiders predict that as the recovery of the international travel market picks up speed this half, the supply-and-demand balance will improve, helping airlines raise ticket prices. As long as international oil prices do not rise significantly and the yuan’s depreciation against the US dollar does not increase further, more airlines will turn losses into profits.

China Eastern Airlines and China Southern Airlines, the country's two other major carriers, will release their earnings reports for the first three quarters on Oct. 31 and 28, respectively.

Editors: Dou Shicong, Martin Kadiev