(Yicai) Sept. 1 -- Chinese budget carrier Spring Airlines was China's most profitable carrier in the first half of this year, maintaining the top spot despite all of its private domestic competitors posting profits, while the country's three biggest state-owned airlines remained in the red.

Spring Airlines' net profit fell 14 percent to CNY1.2 billion (USD164.7 million) in the six months ended June 30 from a year earlier, according to its first-half earnings report. The Shanghai-based company has been the most profitable Chinese carrier over the past two years.

The net profit of Juneyao Airlines climbed 3.3 percent to CNY505 million (USD71.1 million) and that of China Express Airlines surged over eight times to a record high CNY251 million, while Hainan Airlines swung into the black with a profit of CNY57 million (USD8 million).

Regarding state-owned carriers, Air China reported its first-half net loss narrowed 35 percent to CNY1.8 billion from a year ago and China Eastern Airlines said its loss almost halved to CNY1.4 billion. However, China Southern Airlines saw its loss widen 24 percent to CNY1.5 billion.

The gap between state and private airlines was due to slower-than-expected recovery in international routes and intense domestic market competition, according to analysts. International flights have yet to fully recover to the pre-pandemic level of 2019, while a capacity surplus in China has dragged down ticket prices, they noted.

State-owned carriers have a higher share of international routes and took a harder hit from the sluggish recovery in global travel, while Spring Airlines, Juneyao Airlines, and other private firms have been less affected because they focus on short-haul routes to neighboring countries like Japan and South Korea. In addition, Spring Airlines' lack of wide-body jets allows more flexibility and speed in reallocating capacity to more profitable routes.

According to the earnings report, all Chinese carriers saw a drop in revenue from the domestic market, with Spring Airlines' relevant passenger-kilometer income falling 4.8 percent. Cost control has become critical to sustaining performance, with private carriers holding an edge.

In addition, airports and air cargo companies performed well over the first six months of this year. Shanghai International Airport's net profit rose 28 percent to just over CNY1 billion, that of Guangzhou Baiyun International Airport soared 71 percent to CNY750 million, and of Shenzhen Airport surged 79 percent to CNY312 million.

Growing international air cargo demand, particularly in the Asia-Pacific, has brought good opportunities for Chinese logistics firms. Air China Cargo reported its profit jumped 86 percent to CNY1.2 billion, while China Eastern Air Logistics said its profit climbed 0.9 percent to CNY1.3 billion. 

Editor: Martin Kadiev