Air China Stock Hits 22-Year Low on Widening Half-Year Loss

Air China's stock plunged to a 22-year low on Monday after the carrier reported a wider loss for the first half of 2026, highlighting how rising operational costs are eroding the benefits of a recovery in travel demand. Shares (HK:0753) fell nearly 4.9% to HK$3.78 in Hong Kong trading.

Deeper Losses Despite Revenue Growth

According to a company report, the Beijing-based airline's net loss attributable to shareholders deepened by approximately 26.8% year-over-year to RMB 2.29 billion for the first six months of the year. This resulted in a loss per share of RMB 0.13.

The widening loss came despite a significant increase in top-line performance. First-half revenues climbed 10.5% from the prior year to RMB 89.268 billion, driven by higher passenger capacity, improved load factors, and better yields. The results indicate that cost pressures are outpacing the airline’s ability to convert revenue growth into profit.

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Cost Pressures and Market Headwinds

The airline's bottom line was primarily impacted by elevated operating costs, including fuel expenditures. Global oil prices have remained under pressure in 2026 amid geopolitical disruptions, creating a challenging environment for the aviation sector.

Broader market sentiment for airlines was also negative on Monday. Other major carriers saw their stocks slide as oil prices rose sharply following reports of renewed military action between the U.S. and Iran. Hong Kong's benchmark Hang Seng index fell 0.8% during the session.