Air China Limited, founded in 1988 and headquartered in Beijing, China, provides air passenger, air cargo, and airline-related services in Mainland China, Hong Kong, Macau, Taiwan, and internationally. It operates through Airline Operations and Other Operations segments. The company also offers aircraft engineering, airport ground handling, import and export trading, aircraft parts wholesale and import, aircraft engine maintenance, aviation IT consulting, and cabin, catering, ticketing, human resources, aircraft overhaul and maintenance, and financial services.
Air China Swings to Loss on Fuel, but Orders 55 Jets
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First-half loss on high fuel costs Air China expects a first-half 2026 net loss of 2.1–2.6 billion yuan. The culprit is persistently high jet fuel prices tied to Middle East conflicts, which squeezed profit margins despite more flights and revenue. This loss is a direct hit to earnings and weighs on the share price.
The loss is the single biggest new financial fact for the period and directly explains weak profitability.
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Weak domestic demand and underperformance Air China shares have fallen over 42% in 2026, badly trailing Cathay Pacific. Morgan Stanley cut profit forecasts for Chinese airlines by 12% on soft domestic demand, and HSBC flagged high fuel costs and limited pricing power. This points to a tough operating environment that keeps pressure on the stock.
It shows the demand and competitive backdrop that explains why the stock has been weak beyond the fuel issue.
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55 Airbus jets ordered for $12.44 billion Air China and its Shenzhen Airlines unit will buy 55 Airbus planes (15 A350-900s, 40 A320neos) for about $12.44 billion, delivered from 2029 to 2032. The deal expands capacity, modernizes the fleet, and aims to lower operating costs and emissions over time.
This is a major new capital commitment that signals long-term growth and fleet efficiency, a positive for future earnings.
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Airbus order part of $17.8 billion China deal Airbus won $17.8 billion in orders from Air China, Shenzhen Airlines, and Hainan Airlines for 95 jets. The orders reinforce Airbus's lead over Boeing in China and support Air China's long-term route expansion and lower-emission goals, a positive signal for future growth.
It confirms the scale and strategic importance of the order, reinforcing the positive long-term capacity story.
Q3 2026
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Air China Swings to Loss on Fuel, but Orders 55 Jets
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First-half loss on high fuel costs Air China expects a first-half 2026 net loss of 2.1–2.6 billion yuan. The culprit is persistently high jet fuel prices tied to Middle East conflicts, which squeezed profit margins despite more flights and revenue. This loss is a direct hit to earnings and weighs on the share price.
The loss is the single biggest new financial fact for the period and directly explains weak profitability.
▼
Weak domestic demand and underperformance Air China shares have fallen over 42% in 2026, badly trailing Cathay Pacific. Morgan Stanley cut profit forecasts for Chinese airlines by 12% on soft domestic demand, and HSBC flagged high fuel costs and limited pricing power. This points to a tough operating environment that keeps pressure on the stock.
It shows the demand and competitive backdrop that explains why the stock has been weak beyond the fuel issue.
▲
55 Airbus jets ordered for $12.44 billion Air China and its Shenzhen Airlines unit will buy 55 Airbus planes (15 A350-900s, 40 A320neos) for about $12.44 billion, delivered from 2029 to 2032. The deal expands capacity, modernizes the fleet, and aims to lower operating costs and emissions over time.
This is a major new capital commitment that signals long-term growth and fleet efficiency, a positive for future earnings.
▲
Airbus order part of $17.8 billion China deal Airbus won $17.8 billion in orders from Air China, Shenzhen Airlines, and Hainan Airlines for 95 jets. The orders reinforce Airbus's lead over Boeing in China and support Air China's long-term route expansion and lower-emission goals, a positive signal for future growth.
It confirms the scale and strategic importance of the order, reinforcing the positive long-term capacity story.
News & notes moving601111.CG
United StatesChinaRussia
Aerospace & Aviation▲
US airlines oppose more China flights, fear disadvantage on Russian routes
US airlines have come out against the idea of increasing passenger flights between the United States and China, after President Xi Jinping proposed on Thursday, September 24, in Washington that the two countries add direct flights to promote travel and trade. Chris Sununu, president of the Airlines for America trade group, known as A4A, which represents major US carriers including American Airlines, United Airlines and Delta Air Lines, said Chinese airlines can still fly eight flights through Russian airspace, while US airlines must take detours, driving up their costs. He said the group has urged officials in the Trump administration not to make concessions, because routing around Russia is no small matter but imposes enormous costs on airlines. Currently, US and Chinese airlines can each operate about 50 round-trip flights a week between the two countries. A4A had earlier opposed a request by Air China to add scheduled flights, arguing that US carriers can barely open routes from the US East Coast to China because they cannot pass through Russian airspace. The restrictions came after the United States barred Russian flights from its airspace in March 2022 following Russia's invasion of Ukraine, and Russia retaliated by banning US airlines from its airspace. Then in 2023, the United States and China agreed that additional Chinese flights would not use routes through Russia. However, the proposal had previously been opposed by other US agencies and was shelved ahead of trade talks with China.
AAL · Regulation · Negative A4A, representing American Airlines, opposes adding US-China flights because US carriers must detour around Russian airspace, raising costs and putting them at a disadvantage.
DAL · Regulation · Negative Delta, as an A4A member, opposes more China flights since US carriers cannot use Russian airspace and face higher costs versus Chinese rivals.
601111.CG · Regulation · Positive Air China's request to add scheduled flights was opposed by A4A; the proposal to add US-China flights would benefit the Chinese carrier that can still fly through Russian airspace.
China's Three Major Airlines Post Combined First-Half Loss of 8.2 Billion Yuan
China's three largest state-owned airlines—Air China, China Eastern Airlines, and China Southern Airlines—posted a combined net loss of 8.2 billion yuan in the first half of 2026, marking their seventh consecutive year of losses, due to higher jet fuel costs. Air China lost 2.3 billion yuan, China Eastern lost 2.2 billion yuan, and China Southern lost 3.7 billion yuan. The first-half loss reversed a profitable first quarter, when the three airlines together earned 4.82 billion yuan, boosted by travel demand during the Chinese New Year holiday. Profits were pressured by disrupted international routes and a 35-38% increase in jet fuel costs amid Middle East conflicts. Meanwhile, revenue for all three airlines grew 9.7-11.1% on strong international travel demand, particularly on European routes, as some passengers avoided Middle East hubs affected by the Iran war. Weak economic conditions and competition from high-speed rail limited the airlines' ability to raise fares. Although jet fuel prices have fallen from their second-quarter peak, they remain more than 50% above pre-war levels.
Air China's 2026 interim report shows net loss of 2.286 billion yuan, widening losses
Air China released its 2026 interim report. Total operating revenue was 89.268 billion yuan, up 10.54% year on year, but net profit attributable to the parent was negative 2.286 billion yuan, a decrease of 480 million yuan compared with the same period last year, widening the loss. Net cash inflow from operating activities was 13.667 billion yuan, down 23.36% year on year. The asset-liability ratio was 83.87%, down 5.12 percentage points from the same period last year. Gross margin was 0.43%, return on equity was negative 3.82%, and diluted earnings per share was negative 0.13 yuan. The company had 175,100 shareholders, and the top ten shareholders held 84.60% of total share capital.
Haixin Energy Technology Helps Launch China's First Fully Localized Closed-Loop SAF Demonstration Project
Sustainable aviation fuel exclusively produced by Haixin Energy Technology was successfully refueled onto a Beijing-to-Brussels flight at Beijing Capital International Airport, marking the launch of China's first SAF project to complete a full-process closed-loop application within the same region. The SAF used in this refueling was refined from waste cooking oil collected in the Beijing area, with raw materials sourced from catering establishments such as KFC and McDonald's in Beijing. China National Aviation Fuel and Zhongjing Zhenghe jointly carried out standardized closed collection and transport, which was then transferred to Haixin Energy Technology for processing and production. China National Aviation Fuel completed the refueling of an Air China flight at Capital Airport, while the Anchor Trace platform jointly developed by the Second Research Institute of Civil Aviation and China National Aviation Fuel carried out the confirmation, trading, and declaration of emission reduction rights. As a state-owned listed company under the State-owned Assets Supervision and Administration Commission of Beijing's Haidian District, Haixin Energy Technology is the only state-owned enterprise in Beijing with SAF production and processing capabilities. It had previously supplied its first batch of SAF products to China National Aviation Fuel in April 2025, covering Beijing Daxing Airport and Chengdu Shuangliu Airport. This latest move further extends its SAF business footprint to Capital Airport, meaning the company's SAF now covers both of Beijing's major hub airports.
China's C919 aircraft makes first international flight
The domestically produced C919 passenger aircraft began its first international route service on Wednesday, August 12, with Air China flight CA723 departing Beijing Capital International Airport around 3 p.m. Beijing time and arriving in Ulaanbaatar, Mongolia. This marks the first international commercial service for the aircraft since its first domestic commercial service on May 28, 2023. Air China currently operates 12 C919 aircraft, while China Eastern Airlines and China Southern Airlines also operate the type. The Commercial Aircraft Corporation of China, or COMAC, said the C919 is China's first self-developed passenger aircraft meeting international airworthiness standards, with intellectual property rights registered. As of August 10, the aircraft has been used on 57 routes connecting 25 cities and has carried more than 7.5 million passenger trips.
Commercial Aircraft Corporation of China (COMAC) · Technology · Positive COMAC's C919 achieves first international flight, a milestone for its self-developed aircraft.
601111.CG · Demand · Positive Air China operates the C919 and is the airline launching its first international route, potentially boosting demand for its services.
Air China announced that in July 2026, passenger capacity rose 4.8% year on year, passenger turnover rose 11.2%, and the average load factor was 85.0%, up 4.9 percentage points. In cargo, cargo capacity rose 8.9%, cargo and mail turnover rose 7.0%, and the cargo load factor was 42.2%, down 0.7 percentage points. During the month, the company introduced one C919 aircraft and one B737 series aircraft, and retired one A320 series aircraft. As of the end of July, it operated a total of 973 aircraft, including 428 owned, 259 under finance leases, and 286 under operating leases. In the first quarter of 2026, Air China reported revenue of 44.536 billion yuan and net profit attributable to the parent of 1.714 billion yuan.
Shenzhen Airlines' registered capital raised to 21.24 billion yuan, completing two rounds of equity financing totaling 16 billion yuan
Shenzhen Airlines' registered capital has been increased from 9.351 billion yuan to 21.24 billion yuan, marking the completion of two rounds of equity financing totaling 16 billion yuan. The first round of capital increase of 4.082 billion yuan was completed in December 2025, with Air China contributing 2.082 billion yuan in cash and Shenzhen Kunhang Investment Partnership contributing 2 billion yuan in cash. The second round of capital increase of 11.918 billion yuan was approved in June 2026, with Air China contributing a total of 6.078 billion yuan through the assessed value of five A350 wide-body aircraft plus cash, and Kunhang Investment contributing 5.84 billion yuan in cash. After the capital increase, Air China maintains a controlling stake of 51 percent, while Kunhang Investment's shareholding ratio has increased. The equity of Shenzhen International, which did not participate in the capital increase, has been diluted accordingly. Industry insiders analyze that the capital injection will optimize Shenzhen Airlines' asset-liability structure, ease liquidity pressure, and the contribution of A350 wide-body aircraft will fill the gap in long-haul intercontinental capacity, driving the expansion of international routes. In the summer-autumn flight season of 2026, Shenzhen Airlines will increase the frequency of its Shenzhen-London and Shenzhen-Melbourne routes, and plans to launch new direct flights from Shenzhen to Jakarta and Bandar Seri Begawan. The Shenzhen-London route will be increased to a daily flight starting September 22, becoming the only daily direct intercontinental route departing from Shenzhen.
Aerospace Manufacturing Profits Outpace Airlines as Fortune Global 500 Aviation Landscape Shifts
The 2026 Fortune Global 500 list shows that aerospace manufacturers generally posted higher profits than airlines. GE Aerospace topped all aviation companies on the list with a net profit of 8.704 billion US dollars, earning over 3 billion dollars more than the world’s most profitable airline, Emirates Group. Airbus recorded a net profit of 5.889 billion dollars, up 28.7 percent year on year. Boeing returned to profitability with a net profit of 2.235 billion dollars, and its revenue surpassed that of Airbus. Honeywell posted a net profit of 4.729 billion dollars. Supply chain strains have led to a shortage of aircraft and components, driving up manufacturers’ profits, while airlines have been weighed down by delivery delays and rising costs. Emirates Group reported a net profit of 5.354 billion dollars. Delta Air Lines had the highest revenue among global carriers and ranked second in net profit. China’s three state-owned major airlines remained absent from the Global 500. Two of them were still loss-making in 2025, and their combined losses in the first half of 2026 are expected to approach 10 billion yuan. Xiamen C&D Group ranked 112th with revenue of 97.028 billion dollars, but it swung from profit to loss in 2025, posting a loss of 509 million dollars.
Aerospace & Aviation › Avionics & Aircraft Systems ▲Pricing
AIR.PA · Supply · Positive Airbus net profit up 28.7% to $5.889 billion, benefiting from supply chain strains driving up manufacturer profits.
BA · Supply · Positive Supply chain strains leading to aircraft shortage drive up manufacturer profits; Boeing returned to profitability with net profit of $2.235 billion.
GE · Supply · Positive GE Aerospace tops aviation companies with net profit of $8.704 billion, benefiting from supply-driven pricing power.
DAL · Supply · Negative Airlines weighed down by delivery delays and rising costs; Delta has high revenue but profits lag manufacturers.
HON · Supply · Positive Honeywell posted net profit of $4.729 billion, benefiting from supply chain strains driving up manufacturer profits.
600029.CG · Demand · Negative China Southern remains absent from Global 500, still loss-making in 2025 with combined losses expected near 10 billion yuan.
Chinese airports surge in global rankings as IATA slashes 2026 airline profit forecast to 23 billion dollars
Airports Council International World has released its 2026 World Airport Traffic Dataset, showing that global air passenger numbers reached 9.8 billion in 2025, up 3.7 percent year on year. Chinese airports performed strongly, with Shanghai Pudong International Airport jumping from tenth to fifth place, Guangzhou Baiyun International Airport returning to ninth, Beijing Capital International Airport rising one spot to fifteenth, and Shenzhen Bao'an International Airport climbing from twenty-second to nineteenth. In cargo, global air freight volume exceeded 131 million tonnes in 2025, up 3.3 percent year on year. China accounted for five of the top twenty airports, with Hong Kong International Airport leading at 5.1 million tonnes and Shanghai Pudong International Airport second at 4.1 million tonnes. Meanwhile, the International Air Transport Association has sharply lowered its 2026 global airline profit forecast. Due to the blockage of the Strait of Hormuz amid Middle East conflict and average jet fuel prices rising to 152 dollars per barrel, the industry-wide net profit estimate has been slashed from 45 billion dollars to 23 billion dollars, with the net profit margin falling to 2.0 percent. Air China, China Southern Airlines, and China Eastern Airlines together posted a combined net loss approaching 10 billion yuan in the first half, with the second-quarter loss reaching 12.201 billion to 13.801 billion yuan, compared with a combined first-quarter profit of 4.828 billion yuan.
Cathay Pacific expects attributable profit of HK$6 billion to HK$6.5 billion in first half of 2026
Cathay Pacific announced that it expects to record an attributable comprehensive profit of approximately HK$6 billion to HK$6.5 billion in the first half of 2026, including about HK$1.4 billion from a deemed disposal gain on an associate due to dilution of its stake in Air China, compared with a profit of HK$3.7 billion in the same period of 2025. In June, the company and HK Express together carried over 3.1 million passengers, with passenger and cargo volume up 9% year on year, passenger numbers up 12%, and available seat kilometres up 6%. In the first half of 2026, passenger numbers rose 17% year on year. In addition, June cargo volume increased 9% year on year, with available cargo tonne kilometres up 1%. In the first half of 2026, cargo volume rose 9% year on year.
0293.HK · Capital · Positive Cathay Pacific expects significantly higher attributable profit of HK$6-6.5 billion in H1 2026 vs HK$3.7 billion in H1 2025, including a deemed disposal gain.
HK Express · Demand · Positive HK Express, as part of Cathay Pacific group, contributed to the 12% passenger growth and 9% cargo volume increase in June, indicating strong demand.
601111.CG · Capital · Neutral Air China is mentioned only as an associate where Cathay Pacific's stake dilution generates a deemed disposal gain; no direct impact on Air China itself.
Airbus Secures $17.8 Billion in Jet Orders from Chinese Airlines
Airbus has secured aircraft orders from Air China and Hainan Airlines with a combined transaction value of about $17.8 billion. Air China agreed to purchase 15 A350-900 widebody aircraft and 40 A320neo-family jets for its subsidiary Shenzhen Airlines in a deal valued at $12.4 billion, while Hainan Airlines separately ordered 40 A320neo aircraft for as much as $5.36 billion. The transactions were disclosed through separate Shanghai Stock Exchange filings on Friday, days before the Farnborough Air Show begins near London. The agreements add to a series of major Airbus sales in China, where the company has gained an advantage over Boeing in the world's second-largest aviation market.
600221.CG · Demand · Positive Hainan Airlines ordered 40 A320neo aircraft worth up to $5.36 billion, directly boosting demand for its fleet expansion.
601111.CG · Demand · Positive Air China ordered 15 A350-900 and 40 A320neo jets for $12.4 billion, increasing its aircraft demand.
AIR.PA · Demand · Positive Airbus secured $17.8 billion in orders from Chinese airlines, boosting demand for its aircraft.
Shenzhen Airlines · Demand · Positive Shenzhen Airlines, a subsidiary of Air China, will receive 40 A320neo jets as part of the order, increasing its fleet demand.
Airbus secures $17.8 billion aircraft orders from three Chinese airlines
Airbus has secured multi-billion-dollar aircraft orders from Air China, Shenzhen Airlines, and Hainan Airlines, with a combined list-price value of $17.8 billion. The package covers 95 aircraft, including A350-900 widebodies and A320neo-family narrowbodies, for deployment across key Chinese routes. The deals reinforce Airbus's role as a key supplier to Chinese carriers modernizing fleets and targeting lower emissions, aligning with China's carbon-peaking and aviation-decarbonization goals. Deliveries are scheduled between 2029 and 2032, supporting long-term backlog visibility and production-slot allocation in a market where Boeing also competes for share.
AIR.PA · Demand · Positive Airbus secures $17.8 billion in orders from three Chinese airlines, reinforcing its role as a key supplier and providing long-term backlog visibility.
600221.CG · Demand · Positive Hainan Airlines is one of the three Chinese airlines placing orders for 95 Airbus aircraft, directly boosting its fleet expansion and modernization.
601111.CG · Demand · Positive Air China is one of the three Chinese airlines placing orders for 95 Airbus aircraft, directly boosting its fleet expansion and modernization.
Shenzhen Airlines · Demand · Positive Shenzhen Airlines is one of the three Chinese airlines placing orders for 95 Airbus aircraft, directly boosting its fleet expansion and modernization.
Multiple Companies on Shanghai and Shenzhen Stock Exchanges Issue Major Announcements on the Evening of July 17
On the evening of July 17, multiple listed companies on the Shanghai and Shenzhen stock exchanges issued important announcements. Goke Microelectronics plans to raise no more than 5.061 billion yuan through a private placement for projects including a next-generation AI vision processing chip. TCL Zhonghuan intends to invest approximately 11.96 billion yuan to build a semiconductor large silicon wafer project for integrated circuits in Shenzhen. Huike Electronics invested 4 billion yuan to establish a subsidiary to advance advanced packaging and testing projects, with the first phase planning to build advanced packaging and testing for 12-inch hybrid chips, reaching a monthly capacity of 20 million units upon full production. Hainan Airlines plans to purchase 40 A320NEO series aircraft from Airbus, with a total transaction amount not exceeding 5.36 billion US dollars. Air China and its subsidiary Shenzhen Airlines will jointly purchase 55 aircraft from Airbus, with a list price of approximately 12.44 billion US dollars. Hunan Yuneng plans to invest about 24 billion yuan in a mining-integrated new energy battery material circular industry project in Weng'an, Guizhou, with an estimated total construction period of five years. Additionally, several companies disclosed earnings forecasts. China Shipbuilding Special Gas reported a net profit of 348 million yuan for the first half of the year, up 95.63 percent year-on-year. Zhiwei Intelligent reported a net profit of 388 million yuan for the first half, up 281.92 percent year-on-year. Jiejia Weichuang expects its first-half net profit to decline by 73.23 percent to 80.22 percent year-on-year. Huichen Information's actual controller, chairman, and general manager Zhao Long was subjected to criminal coercive measures for suspected illegal disclosure or non-disclosure of important information. ST Wenfeng and its controlling shareholder were placed on file for investigation by the China Securities Regulatory Commission for suspected illegal information disclosure.
Semiconductors › Advanced Packaging & Test (OSAT) Capital
001339.CS · Capital · Negative Jiejia Weichuang (JWIPC Technology) expects first-half net profit to decline by 73.23% to 80.22% year-on-year.
002129.CS · Capital · Positive Announced investment of ~11.96 billion yuan to build a semiconductor large silicon wafer project in Shenzhen.
300672.CS · Capital · Positive Plans to raise up to 5.061 billion yuan via private placement for next-generation AI vision processing chip project.
301358.CS · Capital · Positive Plans to invest about 24 billion yuan in a mining-integrated new energy battery material circular industry project.
600221.CG · Capital · Positive Hainan Airlines plans to purchase 40 A320NEO aircraft from Airbus for up to $5.36 billion, a major capital investment.
601111.CG · Capital · Positive Air China and its subsidiary Shenzhen Airlines will jointly purchase 55 Airbus aircraft with a list price of ~$12.44 billion.
Air China plans to buy 55 Airbus aircraft for 12.44 billion US dollars
Air China announced it has signed an aircraft purchase agreement with Airbus, planning to buy 15 A350-900 and 40 A320NEO family aircraft, with a combined list price of approximately 12.44 billion US dollars. Air China, as the buyer, will purchase 15 A350-900s through its wholly owned subsidiary Air China Import and Export Corporation, while its controlling subsidiary Shenzhen Airlines will buy 40 A320NEOs. The aircraft are scheduled for delivery in batches from 2029 to 2032, and the transaction will be paid in installments using own funds, bank loans, and other financing methods. The company said the deal will expand capacity, optimize fleet structure, reduce operating costs, and support a green and low-carbon transition.
China's Big Three Airlines Face Up to 9 Billion Yuan First-Half Loss as Summer Demand Slumps
China's three largest airlines—Air China, China Eastern Airlines, and China Southern Airlines—face a combined net loss of up to 9 billion yuan for the first half of 2026, confronting a tougher outlook. With demand remaining weak, doubts are growing over whether the summer travel season can absorb soaring fuel costs. HSBC analysts forecast the trio will post a combined loss of about 16.8 billion yuan for the full year. In contrast, current market estimates expect a combined profit of 1.3 billion yuan, highlighting a sharp divergence in views. Chinese carriers engage in very little jet fuel hedging, leaving them highly exposed to rising crude oil prices.
China's Big Three Airlines Trail Cathay by Nearly 50 Percentage Points
Shares of Air China, China Eastern Airlines, and China Southern Airlines have each fallen at least 42% so far in 2026, while Cathay Pacific Airways has risen nearly 6%, leaving the three mainland carriers trailing the Hong Kong-based airline by almost 50 percentage points. Morgan Stanley lowered its net profit forecasts for the three major Chinese airlines by an average of 12% last week, citing soft domestic demand. HSBC noted that elevated fuel prices and limited pricing power are pressuring margins, and maintained its buy recommendation on Cathay Pacific as short- and long-haul bookings improved. Investors now await Cathay's first-half earnings in early August and results from the mainland carriers later next month for signs of whether the performance gap will persist.
0293.HK · Demand · Positive Cathay's short- and long-haul bookings improved, and its shares rose nearly 6% in 2026, contrasting with mainland carriers' declines.
600029.CG · Demand · Negative Soft domestic demand cited by Morgan Stanley, leading to lowered net profit forecasts.
600115.CG · Demand · Negative Soft domestic demand cited by Morgan Stanley, leading to lowered net profit forecasts.
601111.CG · Demand · Negative Soft domestic demand cited by Morgan Stanley, leading to lowered net profit forecasts.
Air China expects net loss of 2.1 billion to 2.6 billion yuan in first half
Air China announced that it expects a net loss attributable to shareholders of the listed company of 2.1 billion to 2.6 billion yuan for the first half of 2026. In the first half, the company's operating performance overall showed characteristics of increased investment, increased production, and increased revenue, with a substantial profit achieved in the first quarter. However, due to the impact of geopolitical conflicts in the Middle East, aviation fuel prices remained high, significantly squeezing airline profit margins and resulting in an operating loss for the first half.
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