Spring Airlines officially responded that the air ticket from Shenyang to Wuhu is only 9 yuan. How does the airline make money?

Airlines are an industry that provides civil air transportation services, and their profitability directly affects the airline's stock price and earnings. What is the profitability of China's major domestic airlines? my country's aviation industry is a "rich mine", but airlines have many shortcomings in how to make money. According to data from the International Air Transport Association, global airline losses totaled US$175 billion. This figure is not only higher than the Civil Aviation Administration of China, but also far exceeds the average level of countries such as the United States and Japan. 1. Revenue and profits of the four major domestic airlines

From the perspective of China Southern Airlines, China Eastern Airlines Group and Air China, the operating income of the three major airlines exceeds one trillion yuan. Among them, Southern Airlines Aviation revenue is the largest, reaching 3.16 trillion. In terms of operating profit, in 2021, China Southern Airlines surpassed Air China for the first time and became the most profitable large-scale civil aviation industry "Big Mac". The net profits of Air China, China Eastern Airlines and Southwest Airlines showed a downward trend. Among them, Southwest Airlines' net profit increased by 17.3% year-on-year, declining for two consecutive years; China Eastern Airlines and China Southern Airlines' net profits both experienced year-on-year declines; HNA's profit dropped by 78.4%. Affected by the epidemic, the financial data of China Eastern Airlines Group is also not ideal. 2. HNA Group has the best profitability

Judging from the profitability of airlines in recent years, HNA Group has performed the best, with a net profit margin of 13.76. Followed by Spring International with 7.47. From the overall profit situation, Hainan Airlines Co., Ltd. has the strongest profitability. Achieved total operating income of 175.567 billion yuan, net profit of 296 million yuan, and earnings per share of 0.42 yuan. Four airlines, Hainan Airlines Group Co., Ltd., Air China Co., Ltd., Dongfang Electric Group Co., Ltd. and Air China Co., Ltd., respectively achieved profits last year. Among them, China Southern achieved the largest profit, reaching 15.558 billion yuan; in terms of net profit, China Eastern and Air China both lost more than 4 billion yuan. The net profit margins of Air China, China Eastern, Hainan and HNA are -2.97, -10.02 and 1.45 respectively; from the perspective of net profit, the average level of each airline is 553 million yuan. 3. China Southern Airlines still suffers serious losses

Among domestic airlines, China Southern Airlines has the largest profit contribution. After deducting non-recurring gains and losses, the net profit attributable to the parent company is very considerable. However, because China Southern Airlines has the most international routes (Beijing-Los Angeles, Guangzhou-Shanghai, Shenzhen-London) are the international routes with the most serious losses, followed by China Southern Airlines, China Eastern Airlines, etc., with losses exceeding 1 billion yuan. Fortunately, China Southern Airlines has several international routes. 4. Conclusion

As an important pillar of the national economy, airlines’ contribution to the national economy is constantly increasing. The rapid development of my country's civil aviation industry has greatly improved our country's national defense strength, economic strength and international influence. But there are also many shortcomings. For example: Compared with some developed countries in the world, my country's aviation industry still has obvious shortcomings in the field of transportation and services: on the one hand, as the aviation market's role in stimulating domestic passenger travel demand has weakened, the domestic passenger market supply is still insufficient; On the other hand, the income level of Chinese residents is still lower than the average level of developed economies, and the per capita disposable income is still lower than the level of developed countries. On the demand side, the contradiction between the inability to meet domestic civil aviation development needs and consumer demand has become increasingly prominent. At the same time, with the influence of factors such as the continuous improvement of passenger consumption levels and changes in demand structure brought about by changes in travel structure, my country's civil aviation industry is still facing tremendous pressure and challenges. However, the domestic aviation industry is still full of vitality and broad space, with huge potential.