Why is Air China stock sliding today?

Air China's stock plummeted nearly 4.9% on Monday, reaching a 22-year low of HK$3.78 per share, after the company disclosed a more severe half-year loss. The net loss attributable to shareholders widened by roughly 26.8% year-over-year, reaching around RMB 2.29 billion for the first half of 2026. Despite this, the company's revenue for H1 2026 increased by 10.5% year-over-year to RMB 89.268 billion, propelled by higher passenger capacity, improved load factors, and better yields.

However, these gains in revenue are being offset by mounting costs, primarily driven by fuel expenses that have remained high due to ongoing geopolitical disruptions in global oil markets. The company's broader financial struggles have sparked a market-wide slide, with other major airline stocks also falling in value. This market downturn comes in tandem with a surge in oil prices following renewed U.S.-Iran military action, which has added to the cost pressures faced by the aviation industry.