China’s Three Largest Airlines Report $1.2 Billion Loss
China’s three major state-owned airlines — Air China, China Eastern and China Southern — reported a combined net loss of 8.2 billion yuan, approximately $1.22 billion, in the first half of 2026. After posting a combined profit of 4.82 billion yuan in the first quarter, supported by strong Chinese New Year travel demand, the carriers recorded combined losses of around 13 billion yuan in the second quarter.
China Southern reported the largest loss at 3.7 billion yuan, compared with 1.53 billion yuan in the same period last year. Air China’s loss widened from 1.81 billion yuan to 2.3 billion yuan, while China Eastern’s increased from 1.43 billion yuan to 2.2 billion yuan. Despite the losses, revenue rose by 10.5% at Air China, 11.1% at China Eastern and 9.7% at China Southern.
Jet fuel expenses at the three airlines increased by between 35% and 38% following a rise in fuel prices amid conflicts in the Middle East. Limited fuel hedging meant that higher costs were reflected more quickly in their financial results. HSBC analysts expect the three airlines to post a combined loss of 16.8 billion yuan for the full year 2026.
