Three major state-owned airline companies in China recorded total losses of 8.2 billion yuan in the first half of 2026, equivalent to about 1.

Three major state-owned airline companies in China recorded total losses of 8.2 billion yuan in the first half of 2026, equivalent to about 1.22 billion dollars.

According to a Reuters report, a sharp increase in jet fuel prices following the war in the Middle East has been one of the main factors behind these losses, and the cost of fuel for Air China, China Eastern, and China Southern has risen by between 35% and 38%.

Air China reported net losses of 2.3 billion yuan, China Eastern 2.2 billion yuan, and China Southern 3.7 billion yuan.

Despite about 10% revenue growth and increased demand for international flights, these three companies still face weak domestic market conditions, competition from high-speed trains, and flight disruptions caused by summer storms.

It is expected that the total losses of these three companies this year will reach around 16.8 billion yuan. The shares of all three companies have also fallen by at least 36% since the beginning of the year.