China's Top Airlines Swing to Profit in First Quarter
China's top three airlines returned to profit in the first quarter behind strong holiday demand. Rising fuel costs and regional conflict now cloud the outlook.
China Southern Airlines Co-A, Air China Ltd-A, and China Eastern Airlines Co-A returned to profit in the first quarter of 2026. The trio reported combined net profits of 4.82 billion yuan ($707 million), reversing heavy losses from the previous year. While holiday demand drove the recovery, a 100% surge in jet fuel prices threatens to erase these gains.
### Holiday Demand Drives Earnings Rebound China Southern Airlines Co-A earned 1.48 billion yuan, swinging from a 747 million yuan loss. Air China Ltd-A posted a 1.71 billion yuan profit, while China Eastern Airlines Co-A reported 1.63 billion yuan in net income. Strong Lunar New Year travel in China fueled the rebound.