IATA forecasts the global airline industry net profit will be USD 35.5 billion in 2019, slightly ahead of the USD 32.3 billion expected net profit in 2018. In further detail, Asia-Pacific carriers are expected to report a USD 10.4 billion net profit in 2019, up from USD 9.6 billion in 2018.
In terms of China, the three listed carriers, Air China, China Southern Airlines, and China Eastern Airlines have all reported windfall revenues in the first three quarters, as the three airline giants' revenues hit nearly 300 billion yuan (USD 43 billion), led by 108.89 billion yuan for China Southern.
More loose alliances
Effective January 1, 2019, China Southern Airlines would not renew its contract with SkyTeam.
In March of 2017, American Airlines invested USD 200 million in China Southern, and in the same month, Hong Kong-based Cathay Pacific and Lufthansa Group, Europe's leading airline group, announced that they had reached a code-share deal to offer passengers selected flights under each other's flight numbers.
American Airlines and Cathay Pacific are founding members of the Oneworld alliance, yet Lufthansa is a member of Star Alliance and China Southern is a member of SkyTeam.
These examples of cross-alliance cooperation also mean that the airlines are putting their own interests ahead of their alliances' interests.
Beijing's new airport
Beijing Daxing International Airport, a multibillion-dollar project that is located on the border of Beijing and Langfang, North China's Hebei Province, is under final construction and is expected to open in September this year.
The airport has been under construction since 2014, and is designed as another international gateway, in addition to Beijing Capital International Airport, which is currently running at maximum capacity. Once finished, it will have the capacity to accommodate 72 million passengers on an annual basis by 2025.
Shanghai-based China Eastern Airlines, along with China Southern Airlines, will be moved into it as scheduled this year, and by 2025, China Southern also aims to introduce a further 250 aircraft to Beijing's new airport and operate more than 900 flights on a daily basis.
Certain foreign carriers such as Delta Air Lines, Korean Airways and Air France KLM will also be based at the new airport.
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