China’s three largest state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—have reported a combined first-half net loss of about 8.2 billion yuan ($1.22 billion) for 2026. Marking their seventh consecutive year of first-half losses, the carriers were heavily impacted by surging jet fuel costs driven by geopolitical conflicts and sluggish domestic travel demand. Despite revenue growth across all three airlines, skyrocketing fuel expenses completely erased financial gains.
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