(Yicai Global) March 31 -- China's three largest state-owned airlines expect to continue bearing the brunt of the Covid-19 pandemic's impact on the travel industry this year after suffering as much as CNY37.1 billion (USD5.6 billion) in losses last year.

China Southern Airlines was doing the best amongst the three as its revenue jumped by 40 percent to almost CNY92.6 billion from a year ago and its net loss was CNY10.8 billion. The three companies revealed their 2020 earnings reports yesterday.

Flag carrier Air China came in second in terms of revenue at CNY69.5 billion, yet dropping by 49 percent. However, its net loss was the biggest at CNY14.4 billion.

China Eastern Airlines’ revenue declined the most. It logged CNY58.6 billion, a more than 51 percent slump. Its net loss was CNY11.8 billion.

The domestic competition will intensify this year due to the lingering effects of the epidemic, and the international aviation industry will go through a period of integration due to firms' cash flow crises, the three said in their reports.

International flights will continue to be restricted as foreign nations grapple to contain the spread of the pandemic, which should have an adverse impact on China Southern's performance, it said, adding that as rivals transfer planes to domestic routes, ticket prices should fall.

Moreover, big foreign airlines are seeking government support while small ones may face bankruptcy which should affect China Southern's cooperation network, the Guangzhou-based company added.

The three firms' passenger load factors all remained above 70 percent in 2020, even if falling by more than 10 percentage points. China Southern was again shining the brightest as its factor was nearly 71.5 percent.

Planes were used increasingly for cargo transport amid the pandemic. Air China's cargo and mail business revenue surged by over 49 percent to CNY8.6 billion (USD1.3 billion). That of China Southern jumped by almost 28 percent to CNY4.9 billion.

Editor: Emmi Laine