Major Chinese Airlines Expect Wider First-Half Losses Amid Surging Fuel Costs

Major Chinese airlines expect their first-half losses to widen as elevated fuel costs brought by the Middle East conflict continue to squeeze operating profit margins. In separate profit warnings issued to the Hong Kong bourse on Tuesday, Air China (HKG:0753, SHA:601111), China Eastern Airlines (HKG:0670, SHA:600115), and China Southern Airlines (HKG:1055, SHA:600029) disclosed preliminary loss estimates for the six months ended June 30. Air China predicts its attributable net loss will widen to between 2.1 billion yuan and 2.6 billion yuan, up from 1.81 billion yuan a year earlier. China Eastern Airlines anticipates its loss to widen to between 1.8 billion yuan and 2.4 billion yuan, compared with 1.43 billion yuan in the prior-year period. China Southern Airlines expects a net loss of 3.47 billion yuan to 3.97 billion yuan, more than doubling its 1.53 billion yuan loss from a year ago. The carriers attributed the downbeat projections to sudden external shocks and high aviation fuel prices, affecting the companies' profitability and causing passengers to shoulder added costs. The struggles in China align with a broader global industry downturn. The International Air.