(Yicai) March 29 -- The losses racked up by China’s three largest airlines significantly narrowed last year, even though they cumulatively lost CNY13.4 billion (USD1.9 billion).

Air China’s net loss shrank 97 percent to CNY1 billion (USD138 million) in the year ended Dec. 31 from the previous year, the national flag carrier announced yesterday. Revenue soared 167 percent to CNY141.1 billion (USD19.5 billion).

China Eastern Airlines and China Southern Airlines reported net losses of CNY8.2 billion and CNY4.2 billion for last year, narrowing 78 percent and 87 percent, respectively, from the year before. Revenue jumped 146 percent and 84 percent to CNY113.7 billion and CNY159.9 billion.

Air China’s shares [SHA: 601111] were trading down 1.2 percent at CNY7.21 (USD1) as of 1.30 p.m. in Shanghai today. The stocks of China Eastern [SHA: 600115] and China Southern [SHA: 600029] fell 0.8 percent and 0.9 percent to CNY3.62 and CNY5.55, respectively.

The Chinese civil aviation market is expected to achieve profitability this year, according to the Civil Aviation Administration of China. Air China, China Eastern, and China Southern also said during their earnings conference calls that their goal is to turn losses into profits this year.

However, the aviation market may not perform as well as expected this year, said Zou Jianjun, professor at the Civil Aviation Management Institute of China. Even though the industry may improve in the first quarter, the third quarter may be disappointing given the pent-up travel demand in the same period last year, Zou predicted.

China’s international passenger flights resumed only to 38 percent of the pre-pandemic level in 2019 last year. This means that international long-haul aircraft had to be moved to domestic routes, affecting Chinese carriers’ fares, utilization rates, and passenger load factors.

Contrary to Chinese airlines, major European and US carriers reported profits last year, mainly because Covid-19 prevention and control measures were lifted earlier abroad than in China. For example, the US ended its 18-month international travel ban in November 2021, while China canceled its restrictions a year later.

US carrier Delta Air Lines achieved a net profit of USD4.6 billion last year, up 250 percent from the year before. German airline Lufthansa’s net profit jumped 112 percent to EUR1.7 billion (USD1.8 billion) in the period.

Editor: Futura Costaglione