All seven major Chinese airlines reported profits for the first three quarters of 2025, though performance growth varied significantly across carriers.
The three state-owned airlines—Air China Limited (601111.SH), China Eastern Airlines Corporation Limited (600115.SH), and China Southern Airlines Company Limited (600029.SH)—along with four private carriers—Hainan Airlines Holding Co.,Ltd. (600221.SH), Spring Airlines Co.,Ltd. (601021.SH), Juneyao Airlines Co.,Ltd. (603885.SH), and China Express Airlines Co.,Ltd. (002928.SZ)—have released their Q3 2025 results. All seven achieved profitability in both Q3 and the cumulative first three quarters.
Calculations show that the "Big Three" airlines (Air China, China Eastern, and China Southern) collectively generated over 140 billion yuan in Q3 revenue, up more than 2% year-over-year (YoY), with net profits exceeding 11 billion yuan, a 10% YoY increase. For the first three quarters, their combined revenue reached approximately 373.9 billion yuan (+2% YoY), while net profits surged over 90% YoY to 6.2 billion yuan.
Among private carriers, Hainan Airlines, Spring Airlines, Juneyao Airlines, and China Express Airlines posted combined Q3 revenue of 35.3 billion yuan (+2% YoY), but net profits fell 4% YoY to 4.9 billion yuan. Their cumulative nine-month revenue grew 3% YoY to 93.4 billion yuan, with profits up 8% to 6.9 billion yuan.
As of November 3 closing prices, China Eastern (600115.SH) led yearly gains at over 25%, followed by China Express (002928.SZ) (+40%), China Southern (600029.SH) and Hainan Airlines (600221.SH) (both +7%), and Air China (601111.SH) (+2%). Spring Airlines (601021.SH) declined 5%, while Juneyao Airlines (603885.SH) fell nearly 3%.
**Performance Divergence: State-Owned Airlines Surge, Private Carriers Struggle in Q3** The Big Three saw sharply divergent Q3 results: Air China's net profit dropped 10% YoY, while China Eastern and China Southern grew over 30% and 20%, respectively. For the nine-month period, Air China and China Southern maintained profit growth (+37% and +17% YoY), with China Eastern returning to profitability. Collectively, their nine-month profits jumped 97% YoY.
Notably, the Big Three's nine-month revenues hit record highs, with profits reaching six-year peaks—though still below historical highs. Their Q3 profitability levels, however, now stand at historic highs.
Among private carriers, Hainan Airlines, Spring Airlines, and Juneyao Airlines all reported Q3 profit declines, with Juneyao dropping over 25%. China Express bucked the trend with a 30% profit increase. Over nine months, Spring and Juneyao saw profits slide over 10%, while Hainan Airlines tripled its earnings and China Express doubled theirs.
Hainan Airlines has consistently improved performance, leading private carriers in both revenue and profitability. China Express achieved record results for both Q3 and the nine-month period. Spring Airlines' nine-month profits have declined annually for two consecutive years, while Juneyao's Q3 performance has weakened for two straight years.
**Air China Attributes Q3 Profit Drop to Reduced Forex Gains** Multiple airlines cited improved operational efficiency and cost controls as key profit drivers. China Eastern highlighted strong summer travel demand, expanded international routes (Europe, U.S., Japan/Korea, North Africa), and enhanced cost management. China Southern noted significant operational improvements and a return to profitability, with international performance surpassing pre-pandemic levels. The carrier plans to focus on Australian routes in the winter-spring season.
Air China attributed profit growth to revenue increases and cost controls but acknowledged Q3's "increased competition without proportional profitability." CFO Xiao Feng explained that non-operational factors—particularly a sharp reduction in foreign exchange gains—dampened results. Excluding forex impacts, net profits actually grew YoY. The airline remains committed to international expansion despite slower U.S. route recovery and recently announced a 20 billion yuan share issuance to reduce debt.
**Hainan Airlines and China Express Shine; Engine Issues Drag Juneyao** Hainan Airlines benefited from market recovery, optimized operations, and favorable currency movements. With Hainan's island-wide customs closure approaching in December 2025, the airline—holding dominant slot shares at Haikou and Sanya airports—expects to capitalize on surging business and tourism demand. It plans to operate 130% of 2019's international flight levels by year-end.
China Express leveraged strong domestic leisure travel demand and cost optimization through increased aircraft utilization and expanded regional routes.
Spring Airlines didn't specify reasons for its slowdown but previously noted tax-related impacts. Juneyao Airlines blamed engine maintenance issues for its profit decline, with A320neo groundings partially offset by 787 operations. The carrier expects engine problems to improve significantly by late 2026 but acknowledges ongoing supply chain uncertainties. It plans strategic route adjustments, prioritizing European and Australian markets while adapting to Southeast Asian volatility.
Juneyao remains confident in its Shanghai/Guangzhou hub pricing power and noted unexpectedly strong post-summer travel demand. Industry-wide, Q4 is projected to see 5% passenger growth following record Mid-Autumn/National Day holiday traffic.
Comments