(Yicai Global) March 31 -- China’s airlines will likely recover this year, according to analysts, after the country’s three largest carriers reported a record combined loss of CNY108.7 billion (USD15.9 billion) for 2022.

Covid-19 control measures have been eased, leading to a sustained rebound of flights and an accelerated increase of international air travel, Chengdu-based Sinolink Securities said in a research note.

Air China's net loss widened nearly 133 percent to CNY38.6 billion (USD5.6 billion) in the 12 months ended Dec. 31 from the previous year because of low tourism demand, high oil prices, and exchange rate fluctuations, the national flag carrier said yesterday. Revenue fell 29 percent to CNY52.9 billion.

China Eastern had an annual net loss of CNY37.4 billion, 200 percent bigger than in 2021, the Shanghai-based firm said the same day. Revenue sank 31 percent to CNY46.1 billion. China Southern's net loss grew 170 percent to CNY32.7 billion on a 14.5 percent drop in revenue to CNY87.1 billion, it said on March 28.

Air China and China Eastern noted that competition in China's aviation market will ease to some extent this year with the sustained recovery and improvements of domestic market needs.

Air transport capacity will grow more slowly in the next few years, while demand in the civil aviation industry will be resilient, Sinolink Securities noted. So the supply gap will become clear, causing a surge in ticket prices and a rebound in the performance of airlines, it said.

The market has entered an accelerated recovery stage after the Chinese New Year holiday, according to Guotai Junan Securities. As it performed steadily during the off-season, it will likely perform well during the peak season, the Shanghai-based broker added.

Last month, airlines raised their investment in transport capacity expansion. The passenger load factors of China’s three biggest carriers exceeded 70 percent in February, recording a gain both from a year and a month earlier.

Editor: Futura Costaglione