China’s Aviation Sector Soars to New Heights with Hainan Airlines Overtaking Spring Airlines as Most Profitable Carrier Amid Record-Breaking Summer Travel Surge

Published on November 3, 2025

Hainan Airlines has emerged as the most profitable airline in China, surpassing Spring Airlines, thanks to a remarkable surge in travel during the summer season. This unprecedented boom, driven by a record 147 million passengers flying across the country, fueled a massive rebound in the aviation industry, helping Hainan Airlines capitalize on the strong demand. The airline’s stellar performance, alongside the overall recovery of China’s civil aviation sector, reflects its strategic growth and market positioning, making it a dominant player in the highly competitive industry.

Hainan Airlines Surpasses Spring Airlines as China’s Most Profitable Airline Amid Strong Travel Surge

Hainan Airlines Holding has surged ahead of Spring Airlines to become the most profitable publicly listed airline in China for the first nine months of 2025. The company’s stellar performance highlights the strength of China’s civil aviation sector, which has enjoyed a robust recovery following the pandemic, with record-breaking numbers of passengers during the summer season.

All seven of China’s publicly listed airlines reported profits during the first nine months of the year, driven by a remarkable boom in travel. The summer months, spanning from July 1 to August 31, saw China’s civil aviation industry hit a new milestone, carrying a total of 147 million passengers, a 4% increase over the previous year. This surge in air travel was a direct result of both pent-up demand and the easing of COVID-19 restrictions, which contributed to a travel revival across domestic and international routes.

While the industry saw overall gains, the performance of individual carriers varied. Spring Airlines, despite a 5% increase in revenue to CNY 16.8 billion, experienced a 10% drop in net profit, which fell to CNY 2.3 billion. This decline is surprising given the airline’s strong financial position in 2023, when it was the most profitable carrier in China. The reasons behind the profit drop have not been disclosed, and this contrast in performance highlights the challenges Spring Airlines faced despite an overall positive trend in the airline industry. In comparison, the airline had maintained strong profits throughout 2023 and the first half of 2024.

On the other hand, China’s state-owned carriers showed impressive financial results, benefiting from both domestic and international growth. Air China, the country’s flagship carrier, saw its net profit soar by 37% to CNY 1.9 billion. This sharp recovery came after a significant loss during the first half of 2024, when it posted a CNY 1.8 billion deficit. Similarly, China Eastern Airlines turned a loss into a profit, recovering from a CNY 138 million loss in the first half of the year to report a CNY 2.1 billion profit for the first nine months. China Southern Airlines also saw a 17% rise in profit, reaching CNY 2.3 billion, reinforcing the positive trajectory of state-owned carriers.

This turnaround for the three largest Chinese airlines is particularly striking, given their significant losses in the first half of 2024. In that period, Air China reported a CNY 1.8 billion loss, China Eastern a CNY 1.4 billion loss, and China Southern a CNY 1.5 billion loss. The recovery is a sign of the resilience of these airlines as they continue to navigate the global aviation landscape, aided by a booming domestic travel market and expanded international routes.

Among other carriers, Juneyao Airlines and China Express Airlines also reported profits, with Juneyao Airlines reaching CNY 1.1 billion and China Express Airlines reporting CNY 620 million in earnings for the first three quarters of the year. These profits indicate that even smaller regional carriers are benefiting from the growth of China’s aviation industry.

The surge in demand for air travel has been fueled by several factors. Domestic tourism in China has boomed, with cities like Beijing, Shanghai, and Guangzhou seeing an influx of both leisure and business travelers. Additionally, international routes have recovered, with Chinese airlines ramping up flights to popular destinations such as Southeast Asia, Europe, and the United States. The growing middle class in China, coupled with higher disposable incomes, has further bolstered the demand for air travel, driving up both passenger numbers and revenue for airlines.

For Hainan Airlines, this growth has translated into substantial financial success. The airline’s profitability is a testament to its strategic expansion and investment in modernizing its fleet and services. As the airline navigates the competitive Chinese aviation market, it has focused on improving its customer experience and increasing its route offerings, which has paid off in terms of passenger loyalty and financial returns.

Looking ahead, China’s aviation industry is expected to continue its upward trajectory. The country’s economic recovery post-pandemic, combined with the ongoing demand for air travel, is expected to support the profitability of both state-owned and private carriers. As international travel continues to gain momentum, Chinese airlines are poised to expand further into global markets, strengthening their position on the world stage.

Hainan Airlines has outpaced Spring Airlines to become the most profitable airline in China, driven by a record surge in summer travel that saw 147 million passengers. This exceptional growth highlights the airline’s successful strategy and the booming recovery of China’s aviation industry.

In conclusion, Hainan Airlines’ ascension to the top of China’s airline profitability rankings reflects the broader success of the Chinese aviation industry. With a growing number of passengers and significant profits reported by many carriers, the sector is on track to continue its strong performance well into 2025. However, challenges such as rising fuel costs, competition, and global economic uncertainties could pose risks to sustained growth in the future. Despite these potential hurdles, the resilience of China’s airlines in the face of adversity offers a promising outlook for the industry.