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Chinese Airlines Suffer Billions in Losses During Covid-19 Pandemic

  • Air China, China Eastern and China Southern report earnings
  • China’s rigid Covid policies, weak yuan and oil prices hurt
Air China blamed its loss on reduced capacity.

Air China blamed its loss on reduced capacity.

Photographer: Yan Cong/Bloomberg

China’s big three state-owned airlines saw total losses during the Covid pandemic balloon to 127.6 billion yuan ($18.5 billion) by the end of June, as the country stuck with its zero-tolerance strategy of border restrictions and snap lockdowns. 

Air China Ltd. said Tuesday its net loss in the first six months of 2022 widened 186% to 19.4 billion yuan from the same period last year, while China Southern Airlines Co. reported a deficit of 11.5 billion yuan. China Eastern Airlines Corp. lost 18.7 billion yuan.