China’s top three airlines head for full-year losses as fuel costs weigh
Air China, China Eastern Airlines and China Southern Airlines reported losses in the first nine months, a period in which they were profitable in 2025.
China's three largest airlines, Air China, China Eastern and China Southern, are on track for full-year losses after weaker than expected third-quarter results. Analysts predict a seventh consecutive annual net loss for Air China and China Eastern, while China Southern is expected to return to a loss after a brief profit in 2025.
The primary factor behind these losses is the surge in jet fuel costs, with the price of fuel JET-SIN more than doubling since late February. Chinese airlines hedge less fuel expense than their Asian and European counterparts, making them more vulnerable to oil price fluctuations. Additionally, domestic fares weakened during the quarter due to intense competition, including from high-speed rail, which prevented airlines from offsetting the higher fuel costs.
Despite a slight improvement in third-quarter earnings, which were slightly better than very low expectations, experts warn that the impact of soaring jet fuel prices and weak demand will continue to put pressure on airline margins.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
- China’s top three airlines head for full-year losses as fuel costs weigh freemalaysiatoday.com
- China’s top three airlines head for full-year losses as fuel costs weigh japantimes.co.jp
