# Financial losses of major Chinese state-owned airlines > Live situation record from CLSTR: https://clstr.news/situations/financial-losses-of-major-chinese-state-owned-airlines > Updated: 2026-09-15T21:00:00.000Z. Sources: 13. Developments: 2. China’s three largest state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—reported a combined net loss of approximately 8.2 billion yuan ($1.22 billion) for the first half of 2026. This follows a profitable first quarter, marking the seventh consecutive year of first-half losses for the group. Financial performance was heavily impacted by rising jet fuel costs, which increased by 35% to 38% due to energy price volatility linked to Middle East conflicts. The airlines remain highly exposed to these fluctuations due to limited fuel hedging. Further complications arose from geopolitical tensions between China and Japan. Following political friction regarding remarks made by Japanese politician Sanae Takaichi concerning Taiwan, the Chinese government requested a reduction in travel to Japan. This led to significant capacity cuts on lucrative routes, including a 23.2% drop in seat capacity on Chinese-operated flights to and from Japan between November and December. Additionally, domestic operations faced pressure from a weak economy and competition from China’s high-speed rail network. ## Timeline ### 2026-09-15: Chinese airlines report 189 billion yen loss amid Japan route cuts Three major Chinese state-owned airlines reported a combined loss of approximately 189 billion yen in the first half of 2026, driven by rising fuel costs and the reduction of profitable Japan-bound routes. 2 sources. https://clstr.news/cluster/chinese-airlines-report-189-billion-yen-loss-amid-japan-route-cuts ### 2026-08-31: China’s major airlines report $1.2 billion first-half loss China’s three largest airlines reported a combined $1.22 billion loss in the first half of 2026, driven by surging jet fuel costs and competition from high-speed rail. 11 sources. https://clstr.news/cluster/major-chinese-airlines-report-heavy-first-half-losses --- Cite as: Financial losses of major Chinese state-owned airlines. CLSTR, https://clstr.news/situations/financial-losses-of-major-chinese-state-owned-airlines