China's three largest state-owned airlines lost for the seventh year in a row in the first half of the year.

China International Airlines, China Eastern Airlines and China Southern Airlines continued to record losses in the first half of 2026.Reuters on August 31 that this is the seventh year in a row that China's three largest state-owned airlines have experienced losses in the first half of the year, with rising oil prices, international flight circumference and operational disruption caused by the Middle East situation becoming a significant cost pressure.

The same day, Luther's program also focused on the pressure of China's aviation business, and linked the three major flight losses, the conflict in the Middle East and the U.S. sanctions environment to discuss. For those involving macro-financial warfare, sanctions transmission and other commentary judgments, this article is only a Luther's viewpoint record; the core facts can be verified are based on airline financial disclosures and independent media reports.

Oil costs become high pressure

Since 2026, tensions have continued in the Middle East, with international oil prices and aviation fuel costs rising, while some routes need to be adjusted or bypassed to increase flight time, crew costs and aircraft use pressure.

Three major state-owned airlines in China have recovered significantly from the epidemic, but ticket prices and earnings performance are not enough to fully offset rising fuel and operating costs.

Restoring passenger flow does not mean returning profits

China's passenger traffic has gradually recovered after the outbreak, but the profitability of the industry is still affected by domestic price competition, the pace of international routes, the RMB exchange rate, fuel costs and geopolitical risks.

For large state-owned airlines, the size of the fleet and the international network can bring operational advantages, but also mean the need to bear higher fixed costs when oil prices rise and routes are blocked.

Luther’s comments are treated separately from verified facts

Luther’s August 31 program described the three major flight losses as a signal of Chinese economic pressure, and further discussed the impact of U.S. sanctions, the conflict in the Middle East and the financial environment on Chinese enterprises.

It can now be independently confirmed that China's three largest state-owned airlines disclosed losses in the first half of the year, and Reuters reports that the three companies have experienced losses in the first half of the year for the seventh consecutive year, noting that the rise in oil and weak demand are important reasons.

The editorial department of Focus China believes that the continued losses in China’s aviation industry are worth observing from a wider economic structure: the recovery of passenger volumes has not automatically resulted in a recovery of profits, indicating that there is still significant tension between price, cost and consumer demand.