China’s three largest state-owned airlines expect their combined losses to widen sharply in the first half of 2026, after a political dispute with Japan disrupted a high-yield international market and rising fuel prices added to financial strains that predated both shocks.
Air China, China Eastern Airlines, and China Southern Airlines forecast combined losses attributable to shareholders of between 7.37 billion yuan and 8.97 billion yuan—up to about $1.3 billion.
The three carriers lost a combined 4.77 billion yuan ($700 million) during the same period last year.
China Southern projected the largest loss, between 3.47 billion yuan and 3.97 billion yuan ($510 million and $580 million). Air China expects to lose between 2.1 billion yuan and 2.6 billion yuan ($310 million and $380 million), while China Eastern projected a loss of between 1.8 billion yuan and 2.4 billion yuan ($260 million and $350 million)….
China’s Big 3 Airlines Forecast Wider Losses Amid Rising Fuel Costs and Cuts to Japan Routes
