March 20, 2025

Civil Aviation Industry Turns Profit

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The Chinese civil aviation sector has experienced remarkable growth recently, reaching impressive passenger transport figures during the Spring Festival holiday of 2025. According to the Civil Aviation Administration of China (CAAC), a staggering 18.24 million passengers were transported nationwide, averaging about 2.28 million passengers dailyNotably, February 3 witnessed an all-time high of 2.48 million travelers being sent off, marking a continuation of the previous year’s trend where the off-peak season did not hinder, and the peak season delivered exceptional results.

During the national civil aviation conference held recently, CAAC Administrator Song Zhiyong revealed that the entire civil aviation industry had managed to reduce its losses by 20.6 billion yuan in 2024, ultimately achieving profitability for the sectorThis significant turnaround was attributed to a variety of factors that collectively fostered a conducive environment for recovery in air travel.

The scales of air transport production have reached unprecedented levels

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Liu Wei, the minister of transportation, noted that China’s civil aviation transported up to 730 million passengers last year, setting a historical precedentThe growth in demand has far exceeded prior expectations, which provided a solid foundation for the industry’s recovery.

Analyzing the recovery, Han Tao, an expert from the Guangdong Transportation Association, emphasized the robust recovery of air travel demand as one of the primary reasons behind the sector's profitabilityAnother contributing factor was the noticeable rise in operational efficiency within the industryFor instance, the daily utilization of airplanes reached 8.9 hours, an increase of 0.8 hours compared to the previous yearEnhanced aircraft utilization allowed airlines to complete more transport tasks within the same time frame, thereby increasing revenueFurthermore, the passenger load factor rose to 83.3%, improving by 5.4 percentage points, while cargo load factors increased by 4.3 percentage points, reaching an impressive 72%. These improvements significantly reduced waste in seat occupancy and capacity, enhancing the profitability of each unit of transport capacity.

Moreover, the international flight schedules rebounded strongly

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In 2024, international passenger flights surged to 6,400 weekly services, recovering to 84% of pre-pandemic levelsThe sector also added 19 new destinations within countries participating in the Belt and Road Initiative, with passenger volumes to Central Asia, Western Asia, and Europe surpassing results from 2019 by 152.4%, 49.5%, and 25.7% respectivelyThis expansion and growth of international routes provided additional revenue streams for the civil aviation sector.

In the context of general aviation, there is a structured approach to development characterized by safety and orderlinessThe segment has seen significant advancements, with China adding 145 new general aviation enterprises and 26 general airports in 2024. The number of registered drones has reached an astounding 1.103 million, with drone flight hours totaling 26.66 million—an increase of 15% year-on-year.

Qi Qi, the Deputy Dean of the School of Civil Aviation Management at Guangzhou Civil Aviation Vocational Technical College, highlighted that the low-altitude economy is marked by high-tech, efficiency, and quality traits, making it a vital direction for nurturing new momentum for development

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The low-altitude economy impacts various sectors, including agriculture, industry, and services, playing an increasingly pivotal role in economic development, social security enhancement, and green growth initiatives.

Li Yanhua, the head of the Civil Aviation Transportation Department at Beijing Jiaotong University, noted the widespread applications of drones across several fields such as agricultural protection, security surveillance, geographical surveying, pipeline inspection, emergency firefighting, and low-altitude logisticsThis resulted in an annual growth rate of the industrial economy in the low-altitude economy surpassing traditional general aviation by ten percentage points, becoming a key driving force for the sector's developmentTechnologies such as electric vertical take-off and landing vehicles are anticipated to create new avenues in urban air mobility and the low-altitude economy.

Li highlighted that the development of low-altitude industries relies heavily on new technological breakthroughs

The expansion of services like low-altitude tourism, agricultural monitoring, and emergency responses necessitates comprehensive advancements in technologyEstablishing intelligent and efficient air traffic management systems is now seen as a vital task for the future of low-altitude space management.

Looking forward, the primary goals established for the civil aviation industry in 2025 include the targeted transport turnover of 161 billion ton-kilometers, the carriage of 780 million passengers, and the handling of 9.5 million tons of cargoSong Zhiyong stated that the industry anticipates a further increase in profitability.

Liu Wei also stressed that this coming year would witness a further deepening of reforms within the industry, fostering new productive forces tailored for the civil aviation sector, and propelling overall high-quality developmentAs the industry prioritizes air traffic safety, it must steady its growth while also pushing forward the construction of aviation hubs and the establishment of a global network.

With ambitions to restore international flight numbers to over 90% of levels seen before the pandemic, Song emphasized accelerating the recovery of international flights and optimizing the allocation of resources based on hub-focused approaches

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The plan includes greater scientific deployment of international route networks, steering initiatives like "One Circle, Six Corridors, and Five Channels," aimed at enhancing routes to regions such as Africa, the South Pacific, and Latin America.

The civil aviation industry is also committed to bolstering support for cargo transport, channeling more resources toward busy cargo airports, and enhancing the operational scheduling for daytime peak timesThis entails supporting airlines in expanding their fleets of dedicated cargo aircraft while refining the inspection processes for cargo and postal services to enhance efficiency and ensure security.

Lastly, significant infrastructure projects will be expedited, promoting a transformation towards being intelligent and green while integrating education and talent development within the industryThe aim is to establish a modern aviation industrial system that can accommodate the dynamic demands of the sector in the years to come.

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