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China Airlines Face Losses Amid Rising Fuel Costs

4/1/2026

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Story summary
  • In Q4 2025, China Eastern Airlines, Air China, and China Southern Airlines posted losses, reversing summer profits as jet fuel rose due to the Iran war.
  • Analysts say rising fuel costs may erode profit margins, now up to 38% of operating expenses.
  • Despite a record 94 million Spring Festival passengers, carriers expect deeper losses in 2026 before profitability in 2027.
  • China Eastern is the only carrier hedging fuel price risk.