(Yicai Global) Aug. 31 -- The losses racked up by Air China, China Eastern Airlines and China Southern Airlines in the first six months already exceed that of the whole of last year, as sporadic outbreaks of Covid-19 continue to hamper air travel and as fuel prices soar.

The ‘Big Three,’ which account for over 60 percent of all China’s passenger flights and air cargo transportation, accumulated losses of CNY49.7 billion (USD7.2 billion) in the first half, compared with CNY41 billion in 2021, according to their latest earnings reports.

The country’s flagship carrier Air China posted an almost three-fold jump in losses to CNY19.4 billion (USD2.8 billion). It was followed by China Eastern at CNY18.7 billion, but whose losses grew the fastest, swelling more than three-and-a-half times. China Southern fared comparatively better with losses expanding two-and-a-half-fold to CNY11.5 billion.

Air travel plummeted during the six months ended June 30 as a series of Covid-19 outbreaks forced people to stay put. Both Air China and China Eastern saw revenue plunge over 50 percent from a year earlier, while China Southern Airlines logged a 32.6 percent slide to CNY26.7 billion (USD3.8 billion).

The outbreaks in Shanghai, where China Eastern is based, at the end of March saw the number of passenger flights out of the city’s two main airports, Hongqiao International Airport and Pudong International Airport, decrease dramatically, significantly affecting operations and performance, the carrier said yesterday.

Big fluctuations in global oil prices coupled with the Chinese yuan’s steep depreciation against the US dollar also hurt their bottom line. Over a quarter of the three airlines’ operating expenses over the period went on aviation fuel, amounting to CNY33.7 billion (USD4.8 billion).

China Southern’s fuel expenditure jumped 16. 6 percent in the first half year on year to CNY14.4 billion, while that of Air China climbed 4.3 percent. China Eastern’s spending on fuel dropped 8.3 percent due to fewer flights.

Although the number of flights picked up in the first 10 days of July, it is still less than a year ago, as more flare-ups since July 21 in popular holiday destinations have discouraged travel, The Paper reported today, citing civil aviation expert Li Hanming.

International flights, which are an important stream of revenue for airlines, are recovering steadily, another industry expert Lin Zhijie said. Oil prices have also come down a bit, which will help relieve some pressure.

Editor: Kim Taylor