The World’s Largest State-Owned Airlines

In the US and Europe, most airlines are privately owned, focusing primarily on maximizing profits for their shareholders. However, many of the world’s biggest carriers are either fully or partially owned by their governments, which means they often operate with a different set of priorities. These airlines aren’t just about making money — they’re also tasked with supporting their country’s broader strategic goals. In this article, we’ll explore the ten largest state-owned airlines, ranked by fleet size from largest to smallest.

1

China Eastern Airlines

Fleet Size: Approximately 800 aircraft (including subsidiaries)

China Eastern Airlines, a dominant force in the skies, ranks as the sixth-largest airline in the world by destinations, offering services to 248 locations. This SkyTeam alliance member is primarily state-owned, with the Chinese government holding a 50.7% stake. Other Chinese state-owned enterprises contribute an additional 15% ownership, while foreign investors like Delta Air Lines hold a 9% stake.

China_Eastern_Airlines_B-209N_Boeing_787-9_Dreamliner

In 2023, China Eastern Airlines reported a significant turnaround in its financial performance. The airline posted a profit of approximately 5.8 billion yuan (around $810 million USD), bouncing back from a loss the previous year. This impressive recovery was driven by a resurgence in travel demand, easing of pandemic restrictions, and strategic operational adjustments.

Year

Profit

Approximate USD Equivalent

2022

-12.6 billion yuan

-$1.8 billion USD

2023

+5.8 billion yuan

+$810 million USD

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China Eastern Airlines plays a pivotal role in China’s Belt and Road Initiative, which aims to enhance trade and connectivity between China and emerging markets across Asia, Africa, and Europe. The airline’s strategic importance extends beyond commercial flights, making it an essential tool for China’s geopolitical aspirations.

2

China Southern Airlines

Fleet Size: Over 650 aircraft

China Southern Airlines, another major player in Chinese aviation, operates a vast fleet of over 650 aircraft, connecting 216 destinations across the globe. The airline is predominantly state-owned, with the Chinese government holding a 75.4% stake. Additional ownership includes foreign investors like American Airlines, which controls 5.8% of the airline.

China Southern Airlines Airbus A320

Photo: Markus Mainka | Shutterstock

Here’s a table comparing the revenue of China Southern Airlines for 2022 and 2023:

Year

Revenue

Approximate USD Equivalent

2022

87 billion yuan

$11.6 billion USD

2023

248.1 billion yuan

$33.08 billion USD

China Southern Airlines is notable for operating one of the largest fleets of Airbus A380s outside the Middle East. Despite the decline in global demand for the superjumbo, China Southern continues to utilize the aircraft on high-traffic routes, emphasizing its commitment to capacity and passenger experience.

3

Air China

Fleet Size: Over 490 aircraft

Air China, one of the three largest airlines in China, operates a fleet of over 490 aircraft and serves 201 destinations. The Chinese government holds a controlling 53.46% stake in the airline, underscoring its strategic importance. Air China also has significant foreign investments, with Cathay Pacific holding an 18.13% stake.

An Air China Boeing 747-8 flying in the sky.

Photo: Vincenzo Pace | Simple Flying

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Air China’s status as the only Chinese airline allowed to fly the national flag on its aircraft highlights its role as a symbol of national pride. The airline is frequently used for state visits and diplomatic missions, playing a vital role in China’s international relations. And the incredible revenue growth in 2023 against 2022 proves the airline’s success:

Year

Revenue

Approximate USD Equivalent

2022

62.72 billion yuan

$8.362 billion

2023

157.37 billion yuan

$20.983 billion

4

Turkish Airlines​​

Fleet Size: Over 350 aircraft

Turkish Airlines, Turkey’s flag carrier, is an aviation powerhouse, ranking as the world’s third-largest airline in terms of destinations served, with an impressive network of 340 locations worldwide. The airline is 49.12% owned by the Turkish government’s Ministry of Privatization Administration, while the remaining 50.88% is publicly traded. Despite its significant private ownership, Turkish Airlines plays a crucial role in promoting Turkey’s national identity and tourism.

Turkish Airlines Airbus A321neo MUC shutterstock_2077032058

Photo: Markus Mainka | Shutterstock

Turkish Airlines had an impressive financial performance in 2023, reporting significant growth across various metrics despite global challenges. The airline achieved a net profit of approximately $3.1 billion in 2023, driven by strong passenger revenues. This was a substantial increase from previous years, showcasing the airline’s resilience and ability to capitalize on the recovery in global air travel.

Metric

2023 Value

Year-over-Year Change

Net Profit

$3.1 billion

+14.8%

Total Passengers Carried

83.4 million

+14%

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In terms of operational achievements, Turkish Airlines carried over 83.4 million passengers, marking a 23.5% increase in domestic capacity and a 16% increase in international capacity compared to 2022. The airline’s extensive network and strategic positioning have allowed it to exceed its 2019 international capacity by 27%, a remarkable feat in the current aviation landscape.

5

Emirates

Fleet Size: Over 260 aircraft

Emirates, the flagship carrier of Dubai, is wholly owned by the government of Dubai through the Investment Corporation of Dubai. The airline operates a fleet of over 260 aircraft, primarily Boeing 777s and Airbus A380s, serving more than 130 destinations across six continents. Emirates posted a profit of nearly $3 billion in 2022, reflecting its strong position in the global aviation market.

In terms of revenue, here are the impressive figures:

Year

Revenue (AED)

Approximate USD Equivalent

2022

104.4 billion AED

$28.4 billion USD

2023

115.0 billion AED

$31.3 billion USD

Massive Emirates A380 at the airport

Photo: Emirates

Emirates is renowned for its luxurious in-flight experience, particularly on its A380 aircraft, which feature first-class suites, onboard showers, and lounges. The airline’s commitment to luxury and service has earned it a loyal customer base and numerous awards, making it a leader in global aviation.

6

Air France

Fleet Size: 243 aircraft

Air France, a cornerstone of European aviation, operates a fleet of 243 aircraft, serving more than 220 destinations worldwide. As part of the Air France-KLM Group, the airline benefits from the scale and resources of one of the world’s largest airline conglomerates. The French government holds a 28.6% stake in Air France-KLM, giving it significant influence, though not full control. Foreign investors, including China Eastern Airlines and Delta Air Lines, also hold shares in the parent company.

Air France A350-900

Touching on revenue in 2022 vs 2023, here’s a table comparing the revenue of Air France:

Year

Profit

Approximate USD Equivalent

2022

+25.67 billion euros

+$27.58 billion USD

2023

+30.23 billion euros

+$32.54 billion USD

Air France’s historical significance is underscored by its role in the development and operation of Concorde, which revolutionized transatlantic travel. Today, the airline continues to innovate, focusing on sustainability and reducing its environmental impact through fleet renewal and eco-friendly initiatives.

7

Qatar Airways

Fleet Size: Over 230 aircraft

Qatar Airways, entirely owned by the Qatari government, operates a modern fleet of over 230 aircraft and serves more than 170 destinations globally. The airline saw a profitable year in 2022, generating over $1.2 billion, partly due to the increased travel demand during the FIFA World Cup.

A Qatar Airways Boeing 777 flying in the skies

Photo: Miguel Lagoa | Shutterstock

Here’s a snapshot of Qatar Airways’ revenue in the years 2022 and 2023:

Year

Revenue (QAR)

Approximate USD Equivalent

2022

68.6 billion QAR

$18.8 billion USD

2023

83.1 billion QAR

$22.8 billion USD

Qatar Airways is not just a commercial airline but also a key instrument of Qatari diplomacy. Its high standards and luxury services make it a symbol of Qatar’s global ambitions and hospitality, frequently earning it top accolades in the aviation industry.

8

Aeroflot

Fleet Size: 168 aircraft

Aeroflot, Russia’s flag carrier, has long been synonymous with Russian aviation. Before the invasion of Ukraine in 2022, the airline was serving 146 destinations and was a key member of the SkyTeam global alliance. However, the geopolitical landscape has drastically altered Aeroflot’s operations and ownership structure.

The Russian government, which already owned 73.77% of the airline, has since repossessed shares held by creditors in countries that imposed sanctions following the conflict. This move has further consolidated state control over the airline, which now faces a dramatically reduced network of just 110 destinations.

Aeroflot aircraft

Photo: Media_works | Shutterstock

The war and subsequent sanctions have not only shrunk Aeroflot’s route network but have also forced the airline out of international alliances, such as SkyTeam. The full implications of these changes to Aeroflot’s long-term strategy and operations are still unfolding, but it is clear that the airline’s future is closely tied to the outcome of the ongoing conflict. Should the war end, Aeroflot may undergo further changes in its ownership and operations, potentially reshaping its role in both Russian and global aviation.

9

Korean Air

Fleet Size: 157 aircraft

Korean Air, the flag carrier of South Korea, is a major player in the global aviation industry, serving 121 destinations with a fleet of 157 aircraft. The airline’s origins as a state-owned entity have left a lasting legacy in its current ownership structure. Although it has since been privatized, the South Korean government still maintains a significant influence through various state-owned entities. The government directly holds around 10% of the airline, with the Korea Development Bank and the National Pension Service of Korea owning 3% and 7% of shares, respectively.

Korean Air Boeing 737 MAX 8

Photo: Korean Air

Take a look at Korean Air’s revenue for the years 2022 and 2023:

Year

Revenue (KRW)

Approximate USD Equivalent

2022

19.8 trillion KRW

$10.82 billion USD

2023

22.5 trillion KRW

$12.24 billion USD

In addition to the direct government stakes, the airline’s largest shareholder, the Hanjin KAL Group, also has ties to the government. The Korean Development Bank, which is state-owned, controls over 10% of Hanjin KAL’s shares, further reinforcing the government’s influence over Korean Air.

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This unique ownership structure allows the airline to operate with a level of independence while still aligning with the strategic interests of the South Korean government. Korean Air’s commitment to providing stock ownership options to its employees is another distinctive feature, with 4.3% of the company being controlled by the airline’s staff. This approach not only incentivizes employees but also aligns their interests with the overall success of the airline.

10

Vueling

Fleet Size: 125 aircraft

Vueling, a Spanish low-cost carrier based in Barcelona, connects 148 destinations with a fleet of 125 narrowbody aircraft. While the airline is based in Spain, its state ownership comes from the Qatari government, which owns a 25.43% stake in Vueling’s parent company, International Airlines Group (IAG). This ownership structure means that, while Vueling operates as a private company, it is influenced by the strategic interests of the Qatari government. Vueling’s position within the IAG group allows it to benefit from the resources and network of one of the largest airline conglomerates in the world.

A closeup of a Vueling Airbus A320 on an airport apron.

Photo: Ivan Berrocal | Shutterstock

The backing of the Qatari government through its stake in IAG provides Vueling with financial stability and access to broader resources within the airline group. This allows Vueling to expand its operations and maintain its competitive pricing, which is crucial in the highly competitive low-cost carrier market. Additionally, Vueling’s position within the IAG group means it can leverage synergies with other airlines in the group, enhancing its operational efficiency and customer service offerings. Despite its low-cost model, Vueling continues to be a significant player in the European aviation landscape.

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Here’s a breakdown of Vueling’s revenue for 2022 vs 2023:

Year

Revenue (EUR)

Approximate USD Equivalent

2022

7.4 billion EUR

$7.9 billion USD

2023

8.1 billion EUR

$8.7 billion USD

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