China’s top airlines post $1.2B first-half loss
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- Air China, China Eastern Airlines and China Southern Airlines recorded combined first-half losses of about 8.2 billion yuan ($1.22 billion).
- Jet fuel costs rose 35%–38% as the US-Iran war disrupted energy markets and international air routes.
China’s three largest state-owned airlines have reported combined first-half net losses of about 8.2 billion yuan ($1.22 billion), marking their seventh consecutive year of losses for the first half, Reuters reported.
Air China, China Eastern Airlines and China Southern Airlines had warned last month that their combined losses could reach as much as 9 billion yuan.
The carriers have been hit by surging jet fuel prices following disruptions to global energy supplies linked to the US-Iran war.
China Eastern described the operating environment as “severely undermined” by disrupted international routes and persistently high fuel prices. Fuel costs at the three airlines increased by between 35% and 38% during the first half.
Unlike many Asian and European airlines, Chinese carriers hedge relatively little of their fuel purchases, leaving them more exposed to swings in oil prices.
The losses come despite stronger revenue from international travel, particularly on European routes, as the airlines continue to face disrupted traffic and weaker domestic demand.
