China’s three largest state-owned airlines—Air China, China Eastern Airlines and China Southern Airlines—reported combined first-half 2026 losses of about 8.17 billion yuan as sharply higher jet-fuel costs outweighed stronger passenger demand. Air China, China Eastern and China Southern all increased revenue in the period, but the rebound was not enough to offset heavier operating expenses, particularly fuel.
Air China posted a net loss of about 2.29 billion yuan, China Eastern around 2.2 billion yuan and China Southern roughly 3.7 billion yuan, with China Southern recording the biggest deficit of the group. Fuel costs rose by roughly 35% to 38% year on year at the three carriers, driven by elevated jet-fuel prices linked to Middle East tensions. China Eastern described profitability in the sector as severely undermined by disrupted international routes and persistently high fuel prices.