What Happened
Fuel Shock Bites Amid Surging Jet Fuel Prices
China’s three biggest state-owned airlines, Air China, China Eastern Airlines, and China Southern Airlines, reported combined first-half net losses of about $1.2 billion, battered by surging jet fuel prices. The losses were a sharp reversal from their combined first-quarter profit, and sent their shares lower in mainland China and Hong Kong trading. The airlines’ revenue growth was strong, driven by international demand, but weaker economic conditions and competition from high-speed rail and driving holidays have hindered their ability to make substantial domestic fare hikes. The article was first reported by Reuters.