China’s Three Biggest Airlines Post Heavy First-Half Losses as Fuel Shock Bites
Fuel costs rose 35% to 38% as the carriers’ combined first-half loss reached about 8.2 billion yuan, Reuters reported.
- On Monday, August 31, 2026, China's three biggest state-owned airlines reported a combined first-half net loss of about 8.2 billion yuan , marking their seventh consecutive year of losses amid surging jet fuel prices.
- Fuel costs rose between 35% and 38% in the first half, and unlike many Asian and European rivals, these airlines hedge little of their fuel purchases, leaving them exposed to price swings China Eastern described as "severely undermined."
- Air China reported a net loss of 2.3 billion yuan, China Eastern lost 2.2 billion yuan, and China Southern posted a 3.7 billion yuan loss, sending Shanghai-listed shares of all three carriers down at least 36% in 2026.
- An unusually strong typhoon season disrupted domestic routes during the peak summer period, with aviation data firm Flight Master projecting a 3.6% year-on-year traffic contraction, while China Southern noted "no effective means available" to manage fuel price exposure.
- HSBC analysts expect the trio to post combined losses of about 16.8 billion yuan for 2026, though revenue growth remains strong, driven by international demand, as carriers expand their fleets of domestically made COMAC C919 jets.
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Three of China's largest air carriers, Air China, China Eastern Airlines and China Southern Airlines, completed the first half of the year with a loss due to the low prices of domestic flights and the high cost of fuel due to the conflict in the Middle East.
China's Top 3 Airlines Post 1.6 Trillion Won Deficit in First Half... 7th Consecutive Year of Losses
(Beijing=Yonhap News) Correspondent Kim Hyun-jung = China's three major state-owned airlines recorded a deficit exceeding 1.6 trillion won in the first half of this year.
China’s Big Three airlines sink deeper into losses as fuel costs soar
China's three largest state-owned airlines reported substantial first-half losses. Surging jet fuel prices and a weak summer season impacted their financial performance. These carriers experienced significant losses, reversing earlier profits from Lunar New Year demand. Disrupted international routes and elevated fuel prices severely undermined their profit environment. Analysts predict continued losses for these airlines throughout the year.
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