Affected by rising oil prices and the continued impact of the epidemic, the three major airlines are expected to expand their losses in 2021.

　　On the evening of January 28, Air China Co., Ltd. (Air China, 601111), China Southern Airlines Co., Ltd. (China Southern Airlines, 600029), and China Eastern Airlines Co., Ltd. (China Eastern Airlines, 600115) successively announced their 2021 annual results Pre-loss announcement.

　　China Southern Airlines is expected to have a net loss of 11.3 billion to 12.8 billion yuan attributable to shareholders of listed companies in 2021, compared with a net loss of 10.842 billion yuan in the same period last year; China Eastern Airlines is expected to have a net loss of 11 billion to 13.5 billion yuan attributable to shareholders of listed companies in 2021 The net loss in the same period last year was 11.835 billion yuan; Air China’s estimated net loss attributable to shareholders of listed companies in 2021 is 14.5 billion to 17 billion yuan, and the net loss in the same period last year was 14.409 billion yuan.

This means that the three major airlines will lose at least 36.8 billion yuan in total in 2021.

　　As for the main reasons for the pre-loss in performance, the three major airlines all mentioned the continued impact of the epidemic, while Air China and China Southern all mentioned the impact of rising oil prices on airlines.

　　As of the close on January 28, the three major airlines are all in the red.

China Southern Airlines reported 7.33 yuan, an increase of 1.52%; China Eastern Airlines reported 5.74 yuan, an increase of 0.7%; Air China reported 10.02 yuan, an increase of 2.24%.

The epidemic continues to impact airline passenger and cargo business

　　According to a report released by the International Air Transport Association (IATA) in October 2021, the global aviation industry is expected to suffer a net loss of US$51.8 billion in 2021 due to the impact of the epidemic.

China's aviation industry is also facing severe challenges. Although domestic air passenger traffic will rebound in 2021 compared with 2020, international air passenger demand will remain low due to the continued high incidence of overseas epidemics and international travel restrictions.

　　南航称，新冠疫情影响持续，国外疫情仍未得到有效控制，国内多地疫情零星散发，公司切实抓好常态化疫情防控，抢抓市场机遇，多措并举增加客货运收入，精益管控成本，全力降低疫情造成的损失。但受疫情影响，旅客出行意愿仍比较低迷，客运市场复苏乏力。2021年公司全年运力投入(可利用座公里)和收入客公里同比分别下降0.37%和0.66%，与2019年相比分别下降37.8%和46.5%，其中国际航线受疫情影响持续低迷，运力投入和收入客公里与2019年相比分别下降92.3%和95.3%，公司2021年经营业绩出现亏损。

　　东航称，2021年面对疫情冲击，公司紧密跟踪市场需求变化，及时调整运力投放，强化客运和货运的联动，实施严格的成本管控措施，确保运营现金流稳定，努力降低疫情带来的不利影响。虽然公司上下全力以赴拓源增收、压降成本，但受疫情严重冲击，公司2021年度经营业绩仍受到重大不利影响。

　　国航称，2021年是新冠肺炎疫情在全球蔓延的第二年，国际航线投入持续受限，国内客运市场流量大幅波动，国航经营效益改善难度日益加大。面对疫情，国航坚持聚焦主业、加强形势研判、聚焦提质增效，全力开展效益攻坚。在严控成本、统筹资源、客货联动、防控风险等方面主动作为、积极应对，努力将疫情影响降至最低。

　　此前，多位民航届业内人士向澎湃新闻记者表示，2021年7月整个民航市场呈现较好形势，特别是在春运需求的抑制后，暑运迎来了一个比较明显的爆发。但是8月暑运市场“急转直下”、提前结束。与往年相比等于只有半场暑运，2021年8月暑期的客运量只有2019年的四成。而2021年下半年国内部分地区相继出现疫情，本就是民航传统淡季的四季度，让整个民航市场更显艰巨。

航油价格加重航司成本负担

　　东航称，燃油价格的持续上涨，加重了航空公司的成本负担。国航称，油价攀升，汇率波动等因素进一步增大公司经营难度，同时主业相关投资企业亦受到严重影响。

　　In the first half of 2021, China Southern's aviation fuel cost was 12.336 billion yuan, a year-on-year increase of 46.87%; Air China's aviation fuel cost was 9.915 billion yuan, a year-on-year increase of 45.55%.

China Eastern's fuel cost was 9.773 billion yuan, a year-on-year increase of 54.81%.

The semi-annual reports of the three major airlines all mentioned that jet fuel has become one of the main operating costs of airlines.

　　According to the data, at the end of 2021, the main contracts of light sweet crude oil futures on the New York Mercantile Exchange and Brent crude oil futures in London closed at $75.21 and $77.78 per barrel, respectively, up about 55% and 50% from the end of 2020, respectively.

　　Previously, some airline staff told The Paper that the fuel surcharges for domestic routes are levied on the basis of a linkage mechanism with aviation kerosene prices. Affected by oil price fluctuations, each airline company will adjust accordingly.

　　Affected by the rise in domestic aviation fuel prices, the collection of fuel surcharges on domestic routes has frequently occurred in recent years.

On June 5, 2018, airlines resumed the collection of fuel surcharges for domestic routes. In less than a year, the fuel surcharges for domestic routes have been raised three times.

Then from December 5, 2018, the reduction began, and until January 5, 2019, airlines suspended the collection of fuel surcharges for domestic routes.

On November 5, 2021, domestic airlines began to levy fuel surcharges due to the rise in jet fuel prices, and one month after the suspension of collection on January 5, 2022, fuel surcharges for domestic routes will be levied again from February 5, 2022. From 10 yuan one way.