China – State-owned carriers Air China, China Eastern Airlines, and China Southern Airlines have forecast wider attributable losses for the six months ended June 30, 2026, after higher jet fuel prices offset first-quarter profitability.

Air China expects an attributable net loss of CNY2.1–2.6 billion, compared with CNY1.806 billion in the first half of 2025. China Eastern forecasts CNY1.8–2.4 billion, compared with CNY1.431 billion, while China Southern expects CNY3.473–3.973 billion, compared with CNY1.533 billion.
All three carriers reported first-quarter profits. The half-year forecasts therefore indicate that second-quarter losses exceeded those earlier gains as the impact of fuel prices moved through operating expenses.
Air China expanded capacity and revenue during the period but reported that elevated jet fuel prices compressed margins despite cost and expense controls.
China Eastern formed a fuel-cost task force, adjusted flight operations, refined revenue management and increased the utilization of fuel-efficient aircraft.
China Southern dynamically adjusted capacity, strengthened passenger and cargo sales and reduced expenditure after aviation kerosene prices began fluctuating sharply in March.
AFM previously reported that China Eastern ordered 25 A330neo aircraft after placing a separate order for 101 A320neo-family aircraft in March 2026. The airline cited fuel efficiency among the factors supporting its widebody renewal, although A330neo deliveries are scheduled from 2029.

About Air China
Air China is China’s Beijing-based flag carrier. Its group operated 964 aircraft at December 31, 2025, including Airbus A319, A320, A321, A330 and A350 aircraft; Boeing 737, 747, 777 and 787 aircraft; and COMAC C909 and C919 aircraft. Air China itself operated 533 aircraft within the wider group fleet.

About China Eastern Airlines
China Eastern Airlines is a Shanghai-based carrier that operated 826 aircraft at December 31, 2025. Its fleet comprised 113 widebody aircraft, 682 narrowbody aircraft and 31 C909 regional jets. The fleet included 390 A320-family, 278 Boeing 737-family, 56 A330, 20 A350, 20 Boeing 777-300ER, 17 Boeing 787 and 14 C919 aircraft.

About China Southern Airlines
China Southern Airlines is a Guangzhou-based carrier that operated 972 passenger and cargo aircraft at December 31, 2025. Its fleet comprised 408 A320-family, 393 Boeing 737-family, 43 Boeing 787, 40 C909, 25 A330, 20 A350, 15 passenger Boeing 777 and eight C919 aircraft, plus 20 freighters.

Source: Air China, China Eastern Airlines, China Southern Airlines

Fuel Pressure Pushes 3 Chinese Carriers Toward Wider Half-Year Losses in 2026

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