Losses mount at China’s big three state-owned airlines as zero-Covid policy deters travel
- Since the start of the pandemic, combined losses at Air China, China Southern and China Eastern have reached US$18.5 billion
- The three carriers placed a US$37 billion order for Airbus aircraft in July
China’s big three state-owned airlines saw total losses during the Covid-19 pandemic balloon to 127.6 billion yuan (US$18.5 billion) by the end of June, as the country stuck with its zero-tolerance strategy of border restrictions and snap lockdowns.
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While the rest of the world has moved on to living with Covid and treating it as endemic, China is persisting with trying to stamp out the virus. Its borders have been largely sealed throughout the pandemic, leading to a collapse in international flights.
Domestic air services have propped up carriers, but not enough to stem losses, and lockdowns in places such as Shanghai and tourist hotspot like Sanya are major deterrents to even internal travel.
That was the country’s first fatal commercial aviation accident in more than a decade. Investigations are ongoing.
