Major Chinese Airlines See Significant Profit Drop Despite Record High Passenger Traffic

China’s sluggish economy is causing ticket prices to fall, hitting airlines’ bottom line.

China Eastern Airlines aircraft are seen parked on the apron in Hongqiao International Airport in Shanghai, China, on June 4, 2020. Aly Song/Reuters

China’s three largest airlines, which are state-owned, reported a significant slip in third-quarter profits despite record-high passenger traffic.

Analysts say it’s the result of China’s falling ticket prices amid its ongoing sluggish economy.