China's three largest airlines end first half 2026 with a loss due to rising fuel prices


09/01/2026

China's top three airlines, Air China, China Eastern Airlines, and China Southern Airlines, concluded the first half of the year with losses stemming from low domestic airfare and elevated fuel prices caused by the Middle Eastern conflict.



Their total loss reached around 8.17 billion yuan ($1.2 billion), but the airlines cautioned in July that it might near 9 billion yuan, as reported by The Wall Street Journal. In the first quarter, the airlines generated a total profit of 4.82 billion yuan due to robust demand, especially for international flights.

Air China reported a net loss of 2.29 billion yuan for January to June, up from a loss of 1.8 billion yuan during the same timeframe last year. China Eastern reported a net loss of 2.18 billion yuan, in contrast to 1.43 billion yuan, while China Southern recorded a net loss of 3.7 billion yuan, compared to 1.53 billion yuan. The price of jet fuel rose by 35-38%.

At the same time, revenue rose for all airlines: Air China by 10.5%, China Eastern by 11%, and China Southern by 9.7%.

China Eastern characterized the airline sector's profitability as "greatly affected" because of disturbances on international routes and continually elevated jet fuel costs.

The Civil Aviation Administration of China reported a 1% rise in passenger traffic, reaching 380 million passengers during January to June.

source: wsj.com