(Yicai) Sept. 1 -- The high-speed railway line between Beijing and Shanghai raked in a resounding profit in the first six months as more people choose to travel by train, outperforming the combined profit of five of China’s major airlines as the high cost of air travel means more people are choosing to travel by train.

The Beijing-Shanghai high-speed railway bagged CNY5.1 billion (USD702 million) in net profit in the six months ended June 30, according to its semi-annual financial report released on Aug. 30. This is a big turnaround from the losses of CNY1 billion it amassed the same time last year.

Meanwhile, the slower-than-expected recovery of international travel, the depreciation of the Chinese yuan against the greenback and the soaring price of aviation fuel all held back airlines’ growth.

The country’s flagship carrier Air China accumulated losses of CNY3.5 billion (USD483 million) in the first half, although this was a narrowing of 80 percent year on year. China Southern Airlines reduced its losses by 75 percent to CNY2.9 billion and China Eastern Airlines shrank its losses by 67 percent to CNY6.2 billion, according to their recently released earnings report.

Only two private airlines, namely Spring Airlines and Juneyao Airlines, turned a profit at CNY838 million (USD115.4 million) and CNY62.4 million, respectively.

High ticket prices mean passengers are less willing to travel medium distances by air and so they are taking the train instead, said industry insider Tang Zhao.

The average price of an air ticket in China surged 30.6 percent in the first quarter from a year earlier, 13.6 percent higher than the same period in 2019, and far outstripping the 1.3 percent climb in consumer prices in the first three months, according to data from the China Air Transport Association.

Most airlines kept their prices high in the second quarter, catering to business class passengers at the expense of ordinary travelers who turned to high-speed rail.

In the long run, the civil aviation industry should try to offer flights that are more in line with market prices and improve efficiency by reducing their overheads, Tang said.

On longer routes of over 1,500 kilometers there is less competition with the railway and three carriers have linked arms with China State Railway Group to offer combined airline and high-speed train tickets.

Editor: Kim Taylor