China's three largest state-owned airlines saw their third-quarter earnings collapse as soaring jet fuel costs offset strong summer travel demand, according to filings with the Hong Kong bourse.
China Southern Airlines (HKG:1055, SHA:600029) swung to a third-quarter net loss attributable to shareholders of 609 million yuan, from a profit a year earlier.
Operating revenue edged up 2.3% to 52.53 billion yuan.
Air China (HKG:0753, SHA:601111) saw its profit slump 93% year over year to 270.6 million yuan, even as revenue rose 5.4% to 51.70 billion yuan.
China Eastern Airlines (HKG:0670, SHA:600115) reported net profit of 64 million yuan, down 98%, while revenue climbed 8.2% to 42.83 billion yuan.
The carriers blamed higher fuel prices. China Eastern pointed to continued geopolitical tensions in the Middle East that kept crude prices elevated.
All three posted losses for the first nine months of 2026. China Southern recorded a net loss of 4.31 billion yuan, compared with a profit of 2.31 billion yuan a year earlier. China Eastern lost 2.12 billion yuan against a 2.10 billion yuan profit, and Air China's net loss stood at 2.02 billion yuan, versus a profit of 1.87 billion yuan.
Costs outpaced revenue across the board. Nine-month operating costs rose 15% to 17% at the three carriers, while revenue grew between 6.9% and 10%.
Demand nonetheless held firm. Air China carried 45.9 million passengers in the third quarter, up 7.3%, and its passenger load factor rose 3.7 percentage points to 86.0%.
Over the nine-month period, net cash flow from operating activities fell 22.6% at China Southern, 24.8% at Air China and 34.2% at China Eastern.
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