China Southern Airlines announced a net profit of 857 million yuan for 2025, marking a return to profitability after five years in the red. The Guangzhou-based carrier said the full-year result sits inside the guidance range it issued in January - between 800 million and 1 billion yuan - and represents a turnaround from a 1.7 billion yuan net loss in 2024.
The airline highlighted operational improvements and more disciplined cost management as the primary drivers of the swing to profit. In particular, China Southern pointed to actions to optimise how it allocated passenger and cargo capacity, alongside steps to tighten overall cost controls.
Despite the improved bottom line, the carrier warned that the broader industry environment continues to present challenges. It cited a difficult external backdrop, ongoing supply-chain tightness and higher prices for aircraft, aviation materials and engines as persistent headwinds for aviation companies.
China Southern noted that it was the only one of China's so-called "Big 3" state-owned airlines to report a full-year net profit for 2025. The company reiterated its view that pressures remain but emphasised that the combination of capacity optimisation and cost discipline had contributed to its positive result.
Currency conversion noted by the company places the US dollar at 6.9105 Chinese yuan renminbi for reference.
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The carrier's statement reflects a company that has moved back into profitability through internal adjustments while continuing to flag external risks from supply chains and higher input costs. Management's outlook retains a cautious tone grounded in those industry pressures.