China’s ‘Big Three’ in the red again as fuel’s ‘adverse impact’ continues

Air China, China Eastern Airlines, and China Southern Airlines all reported operating losses for the third quarter of 2023, marking a second consecutive period of financial difficulty for the three major Chinese carriers. These “Big Three” airlines cited persistently high fuel prices as the primary driver behind their continued negative earnings. The volatile nature of these fuel costs significantly impacted the companies' profitability during this reporting cycle. Analysts attribute the ongoing challenges to broader economic factors alongside the sustained pressure from rising aviation fuel expenditures. Industry observers anticipate that the adverse impact of fuel will likely persist throughout much of the remainder of the year.