China’s 3 major airlines bet on international demand for relief from deep losses: analysts
Chinese carriers choose low fares, long-term expansion as regional conflicts and weak domestic demand affect revenues
China’s three biggest airlines are expected to absorb steep financial losses from the first half of 2026 – but avoid notable fare increases – in a long game aimed at stimulating air travel, especially on international routes, aviation experts said this week.
Air China, China Eastern Airlines and China Southern Airlines all reported widening net losses in the first six months of the year due to fuel price increases driven by the Iran war, according to stock market filings by the carriers. Muted demand for domestic travel was also cited as a contributing factor by analysts.
Airfare increases were considered unlikely as the Civil Aviation Administration of China, the country’s civil aviation regulator, indicated last month that the industry would focus on flight safety and passenger demand stimulus through to 2030.