The seal cavity leakage flow has a considerable impact on the performance of the aeroengine, especially on the multistage compressor. Thus, a quasi-three-dimensional simulation program named CAM is developed basing on circumferentially averaged throughflow method. The program enables a rapid diagnosis for the performance degradation of multistage compressor caused by labyrinth wear. The coupling flow field between the seal cavity leakage flow and the main flow field at the root of the shrouded stator of a high-loading three-stage compressor with inlet guide vanes (IGV) was simulated by CAM and the results indicate that seal cavity leakage flow has a significant impact on the overall performance of the compressor. That is, for a 1% increase in the seal-tooth clearance-to-span ratio, the decrease in total pressure ratio was 2.6%, and the reduction in efficiency was 0.6%. Stage performance shows that the seal cavity leakage flow reduces the pressurization capacity of the current stator and the work capacity of the downstream rotor, but has little effect on the upstream blade row. Spanwise distribution of blade element performance shows that the leakage flow leads to an increased flow blockage near the hub, resulting in spanwise migration. The incidence of the stator and rear rotor then change through the entire span. The leakage flow leads to the flow blockage and migration and hence changes the incidence angle, which results in the deterioration of compressor performance.