(Yicai Global) March 31 -- China's three biggest carriers, Air China, China Eastern Airlines and China Southern Airlines, all logged greater losses last year from the year before despite a jump in revenue as a surge in the cost of jet fuel offset an uptick in passenger travel.

The country’s flag carrier Air China’s deficit widened 15.5 percent in 2021 from a year earlier to CNY16.6 billion (USD2.6 billion), according to its annual report released yesterday. China Eastern Airlines posted a 3.2 percent increase in losses to CNY12.2 billion and China Southern Airlines’ losses soared 11.6 percent to CNY12.1 billion, according to their earnings reports also released yesterday.

An increase in revenue was wiped out by the increased cost of fuel. Guangdong-based China Southern Airlines, the country’s highest earning carrier, logged a 9.8 percent year-on-year jump in revenue to CNY101.6 billion (USD16 billion). But its expenditure on fuel soared 35.7 percent to CNY25.5 billion.

Revenue at Beijing-based Air China advanced 7.2 percent to CNY74.5 billion (USD11.7 billion), while fuel costs leapt 39.7 percent. Shanghai’s China Eastern Airlines saw revenue grow 14.5 percent to CNY67.1 billion, but its fuel expenses gained 48.8 percent.

China’s civil aviation sector, which includes airlines and airports, has suffered losses of over CNY210 billion (USD33 billion) since the onset of the pandemic in early 2020 to February this year, Zhang Qing, deputy director of the Civil Aviation Administration's department of development planning, said earlier this month. And the situation is not likely to improve any time soon, industry insiders said.

In the first two months of the year, passenger traffic plunged 43 percent from the same period in 2019, compared with 33 percent last year from 2019, racking up estimated losses of CNY22.2 billion (USD3.5 billion).

Global industry losses are expected to narrow 62 percent last year from the year before to USD52 billion, as global passenger air travel slowly recovers while freight demand remains strong, the three airlines said in their reports, citing the International Air Transport Association.

Editor: Kim Taylor