BUSINESS

Chart of the Day: China Southern Beats Rivals Getting Back in the Black

Published: Apr. 2, 2026 6:32 p.m. GMT+8

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China Southern Airlines Co. Ltd. (600029.SH) returned to profitability in 2025 for the first time in six years, breaking a prolonged post-pandemic losing streak for China’s “Big Three” state-owned carriers as its two main rivals continued to bleed cash.

Despite a broader rebound in travel demand, the mixed financial results underscore a domestic aviation sector still battered by fierce price wars and a sluggish international recovery, while escalating geopolitical conflicts and surging jet fuel prices threaten to further squeeze the airlines’ debt-heavy balance sheets in 2026.

China Southern Swings to Profit as Peers Still In the Red

For the year ended Dec. 31, Shanghai-listed China Southern swung from a year-earlier loss to a net profit of 857 million yuan ($125 million). Full-year revenue grew 4.6% to 182.3 billion yuan. The turnaround was largely driven by its logistics arm, which contributed 3.6 billion yuan in net profit to the parent company, offsetting losses from several regional passenger subsidiaries.

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China Southern Airlines reported 857 million yuan ($125M) profit in 2025, driven by logistics; Air China lost 1.8B yuan, China Eastern 1.6B yuan.
Domestic price wars cut yields (e.g., 4.2% for Southern to 0.5 yuan/ASK); international recovery at 80% pre-pandemic levels.
Geopolitical risks reduced China-Japan flights to 66% of 2019; jet fuel prices rose 143% to $227.4/barrel; debt ratios 84-89%.

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Who’s Who

China Southern Airlines Co. Ltd.: China Southern Airlines Co. Ltd. (600029.SH) swung to a 2025 net profit of 857 million yuan ($125M) from prior losses, with revenue up 4.6% to 182.3 billion yuan. Logistics arm contributed 3.6 billion yuan profit, offsetting regional losses. Yield fell 4.2% to 0.5 yuan/RPK, load factor rose to 86.3%. Debt ratio: 84.3%.

Air China Ltd.: Air China Ltd. (601111.SH), a flag carrier, reported a widened net loss of 1.8 billion yuan in 2025, dragged by regional subsidiaries. Yields fell amid domestic price wars despite higher occupancy. Liability-to-asset ratio hit 88.6%. A 5% jet fuel price rise would add 2.5 billion yuan in costs. (62 words)

China Eastern Airlines Corp. Ltd.: China Eastern Airlines Corp. Ltd. (600115.SH) narrowed its 2025 net loss to 1.6 billion yuan (down nearly 2.6 billion yuan year-over-year), dragged by regional subsidiaries. Yields fell amid domestic price wars. Liability-to-asset ratio: 86.7%. Raised international fuel surcharges; subsidiary China United Airlines to hike domestic surcharges up to 500% from April 5. (62 words)

Xiamen Airlines Co. Ltd.: Xiamen Airlines Co. Ltd., a subsidiary of China Southern, announced plans to raise fuel surcharges for domestic flights by up to 500% starting April 5.

China United Airlines Co. Ltd.: China United Airlines Co. Ltd., a subsidiary of China Eastern, announced plans to raise fuel surcharges for domestic flights by up to 500% starting April 5.

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