China Southern Airlines Remained Lossmaking in 2023

Despite being the largest airline in China, China Southern Airlines has long been disadvantaged among the Big Three Chinese airlines. Compared with Air China and China Eastern Airlines, each holding Beijing and Shanghai markets, China Southern primarily operates out of Guangzhou. Guangzhou attracts a lower percentage of business traffic than Beijing and Shanghai. Besides, Guangzhou as an aviation hub in the Greater Bay Area faces intense competition from Shenzhen and Hong Kong, while Beijing and Shanghai each dominate their respective region. As a result, China Southern’s passenger yields have been the lowest among the three Chinese airlines.