Reuters reported on Monday, 11 Aban, that three major Chinese airlines recorded net losses in the first nine months of 2026, and a sharp rise in fuel prices due to the war involving Iran has weakened their profit outlook.

According to the report, the price of jet fuel has more than doubled since the start of US and Israeli attacks on Iran in late February. Chinese airlines are also more exposed to the increase in costs because of limited use of fuel-risk hedging contracts.

Net profit at Air China and China Eastern fell by 92.6 and 98.2 percent, respectively, in the third quarter of this year, while China Southern recorded a net loss of 609 million yuan.

Analysts expect all three companies to end 2026 with net losses. Intense competition in China’s domestic market and ticket prices remaining low have also limited the ability to offset the rise in fuel costs.