Thinner seats, thicker losses: can cost cuts lift China Southern out of trouble?

Despite a post-pandemic rebound in air travel, the airline has yet to return to profitability.

12:26 Mar 20, 2025
Photo by Tang Jun

Photo by Tang Jun

by Shen Xiaoge

China Southern Airlines has begun rolling out ultra-thin seats on select flights, sparking mixed reactions from passengers. While some say the new seats feel noticeably harder, others report little difference.

The change, introduced in early March, is part of a broader cabin reconfiguration aimed at improving efficiency. The airline says the slimmer seats reduce weight by around two kilograms per unit, helping to lower fuel consumption and operating costs. Despite the thinner design, seat pitch remains unchanged, allowing for increased passenger capacity.

Industry sources reveal that 43 aircraft have been refitted so far, with Boeing 737s now configured in an all-economy 186-seat layout and Airbus A320s in a 180-seat setup—seat densities comparable to budget airlines.

While some passengers question whether fares will drop in line with the reduced comfort, China Southern's customer service clarified that ticket prices are determined by market demand, not seat design. An aviation analyst noted that economy-class travelers prioritize affordability over comfort, suggesting the move is unlikely to impact demand significantly.

The cost-cutting measure comes as China Southern struggles to recover from prolonged financial losses. Despite a post-pandemic rebound in air travel, the airline has yet to return to profitability. From 2020 to 2024, its accumulated net losses exceeded 60 billion yuan (US$8.3 billion).

Its latest earnings forecast paints a bleak picture, with a projected net loss of 1.25 billion to 1.87 billion yuan for 2024, and an even steeper adjusted loss of up to 4.38 billion yuan. In a further setback, the airline withdrew the planned IPO of its logistics subsidiary in late February, reportedly due to its inability to meet regulatory requirements for parent company profitability.