China’s three largest mainland airlines face another difficult year as expensive fuel erodes the benefits of recovering travel demand. Air China, China Eastern Airlines and China Southern Airlines all reported losses for January–September 2026, while analyst forecasts compiled by LSEG point to full-year losses.
The summer quarter produced different outcomes. Air China’s quarterly filing shows net profit of 270.6 million yuan, down 92.6%. China Eastern earned 64 million yuan, down 98.2%, while China Southern posted a 609 million yuan loss. Those quarterly figures are separate from the cumulative nine-month losses.
High fuel costs and weak domestic fares squeezed margins during the normally lucrative summer season. As MarketSpeaker reported, limited fuel hedging leaves the carriers more exposed to price swings than many Asian and European peers.
For travelers, the latest fare signals are mixed. BofA analyst Nathan Gee told Reuters, via CNA, that checks after October’s Golden Week showed domestic fares rising at double-digit annual rates as airlines restrained capacity. That describes observed pricing, rather than an announced increase across every route.
We previously covered Ryanair’s fuel-cost warning, showing that the pressure extends beyond China. For flight shoppers, the practical comparison remains the total fare for a specific route and date, including baggage and ticket-change conditions.
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