China’s 3 major airlines bet on international demand for relief from deep losses: analysts

China’s three biggest airlines are expected to absorb steep financial losses from the first half of 2026 – but avoid notable fare increases – in a long game aimed at stimulating air travel, especially on international routes, aviation experts said this week.

Air China, China Eastern Airlines and China Southern Airlines all reported widening net losses in the first six months of the year due to fuel price increases driven by the Iran war, according to stock market filings by the carriers. Muted demand for domestic travel was also cited as a contributing factor by analysts.

Airfare increases were considered unlikely as the Civil Aviation Administration of China, the country’s civil aviation regulator, indicated last month that the industry would focus on flight safety and passenger demand stimulus through to 2030.

That would mean “lower prices to allow more passengers to take planes”, independent aviation analyst Li Hanming said.

China’s plan also emphasised “internationalisation”, with analysts saying that cross-border flights could help the airlines keep balance sheets under control, albeit slowly and only if new aircraft orders were linked to real demand.

Chinese airlines’ right to fly over Russian airspace on routes to and from Europe already gives them an advantage over European carriers, which Moscow has barred from its airspace during the Ukraine war. Rapid expansion of China’s visa-free rules for foreign travellers is further boosting business for the airlines.