Three main airlines in Asia are back in the black, rebounding from their pandemic doldrums as world journey picks up, and they’re all saying that China may very well be the next bright spot for them.

Just this week, Singapore flag provider Singapore Airlines posted a record net profit of two.16 billion Singapore {dollars} ($1.61 billion) for the monetary 12 months ended March.

This was its highest web revenue in its 76-year historical past and a stark reversal from the lack of SG$962 million recorded in the earlier monetary 12 months.

In an additional signal of monetary power, the airline additionally announced its intention to redeem SG$3.1 billion of necessary convertible bonds. It comes six months after the firm redeemed one other tranche of necessary convertible bonds price SG$3.5 billion.

Japan’s All Nippon Airways additionally noticed its first full 12 months revenue since the Covid-19 pandemic began

ANA recorded a net profit of 89.4 billion yen ($650.3 million) for the 12 months ended March, in contrast to a web lack of 143.6 billion yen the 12 months earlier than.

This has already surpassed pre-pandemic ranges in 2019 fiscal 12 months that ended March 2020. At that point, ANA posted a web revenue of simply 28 billion yen, lower than a 3rd of its present web revenue.

Japan Airlines additionally noticed a turnaround in its monetary 12 months ended March, with full year net profit coming in at 34.4 billion yen, in distinction to the 177.5 billion yen loss in the identical interval a 12 months in the past.

This sentiment was additionally shared by JAL. While the Japanese carrier managed to capture demand from worldwide passengers on Japan-bound routes in its earlier monetary 12 months, the worldwide section is anticipated to see additional development given the easing of restrictions on the China routes.

ANA didn’t title any particular nation or area it was looking to for development, however the airline said the surroundings in the business “is bettering quickly,” with home flights seeing an easing of exercise restrictions, and worldwide flights seeing international locations carry entry restrictions.

The Japan Times reported ANA CEO Koji Shibata as saying that whereas the restoration from Europe and China was nonetheless lagging, “demand from Chinese vacationers in the summer time will “have additional impact on our earnings,” he added.

Separately, South Korean provider Korean Air additionally expects a lift from Chinese journey this 12 months, saying it expects global passenger demand to rapidly recover in the second quarter of 2023.

That’s regardless of reporting a 35% 12 months on 12 months fall in web revenue to 335.4 billion Korean gained ($272.6 million) in the first three months of 2023. Korean Air’s fiscal 12 months runs from January to December.

At its first quarter earnings presentation, the airline predicted that demand to China will likely be boosted “when restrictions on group journey are lifted.” Travel from the Americas are additionally anticipated to profit the airline, as vacationers transit in Korea en route to China.

Full 12 months web revenue for the monetary 12 months ended December rose 179% year-on-year to 1.78 trillion Korean gained.