China’s three biggest airlines (Air China, China Eastern and China Southern) are heading towards full-year losses after publishing far weaker third-quarter results than last year. The results reflect high jet fuel costs, weak domestic fares, and typhoon disruptions that hit what is normally their most profitable period.
Chinese airlines face another year of losses
According to analyst estimates compiled by London Stock Exchange (LSEG), Air China and China Eastern Airlines are on track for a seventh consecutive year of net losses since the COVID-19 pandemic.
China Southern Airlines, which returned to profitability in 2025 after a loss in 2019, is also set to slip back into a loss, the estimates show.
Air China’s third-quarter net profit fell by 92.6% from the previous year to 270.6 million yuan.
China Eastern posted a net profit of 64 million yuan for the quarter, down 98.2% from 2025.
China Southern’s third quarter swung to a net loss of 609 million yuan from a net profit of 3.84 billion yuan last year.
Rising fuel costs add pressure on airlines
The third quarter, which includes the peak summer season, is normally the most profitable for Chinese airlines and sets a high base for year-on-year comparisons, but all three carriers said high jet fuel costs following the ongoing war negatively impacted their results, as they have for many other airlines.
Since the U.S. and Israel went to war with Iran in late February, the price of jet fuel has more than doubled.
Chinese airlines hedge far less of their fuel than many other Asian and European airlines, leaving them more exposed to unstable fuel costs.
Shares of Air China, China Eastern, and China Southern have dropped by 38%, 46%, and 39%, respectively, this year.
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