China's Big Three airlines hit by massive first-half losses

China's aviation sector faces mounting headwinds as Air China, China Eastern Airlines and China Southern Airlines reported substantial combined losses for the first half, marking a dramatic turnaround from their 4.82 billion yuan profit in the first quarter.

The deterioration reflects surging jet fuel prices that have squeezed margins across the industry, offsetting revenue gains from increased passenger volumes as travel demand recovers in the world's second-largest economy.

The three carriers dominate China's domestic aviation market and account for the bulk of the country's international flight operations. Their collective financial struggles signal broader pressure on regional airlines as global energy prices remain elevated, threatening profitability across Southeast Asia's aviation sector.

Analysts expect the fuel cost burden to persist in coming months, with carriers facing difficult choices between absorbing losses or raising ticket prices further. Some airlines have already implemented fuel surcharges, though capacity constraints limit pricing power during peak travel seasons.