China’s Air China, China Eastern, and China Southern Airlines will collectively report a net loss of 73.73 billion to 89.73 billion yuan for the first half of 2026, a 54% to 88% widening from the 47.70 billion yuan loss in H1 2025. China Southern is expected to post the highest individual loss at 34.73–39.73 billion yuan. Jet fuel prices have essentially doubled, averaging over $140 per barrel, driven by Middle East geopolitical friction starting in March 2026. Fuel now constitutes 35% to 38% of operating expenses, crushing profitability despite strong passenger demand. Stock prices fell sharply: China Eastern dropped 6.25%, Air China 4.67%. HSBC has lowered earnings forecasts, predicting deeper losses than last year, while Cathay Pacific remains profitable due to premium and cargo strength.