Chinese Airlines Issue Cautious Outlook as Fuel Costs Rise
China's top airlines expect 2026 losses as the Iran war raises fuel costs. High-speed rail competition and domestic oversupply further pressure profit margins.
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The primary state-owned carriers in China have expressed a cautious outlook for the current year as the conflict in Iran drives jet fuel prices significantly higher. This warning comes after all three major airlines returned to losses during the final quarter of 2025, despite a brief recovery earlier in the year. The industry is currently contending with domestic oversupply and geopolitical uncertainties that are impacting global aviation.
In its annual report, CHINA EASTERN AIRLINES CO-H noted the persistent impact of international tensions.
