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Beijing, China China’s three largest state-owned airlines Air China, China Eastern Airlines and China Southern Airlines are expected to record combined second-quarter losses of more than RMB 10 billion ($1.48 billion) after a sharp increase in jet fuel prices wiped out profits achieved during the first three months of 2026. The downturn follows a profitable first quarter, when the three carriers collectively earned about RMB 4.8 billion ($710 million), supported by strong Lunar New Year travel demand, recovering international traffic and lower fuel prices. However, rising oil prices linked to the Middle East conflict reversed the recovery during the April-June period. Based on company filings, the three airlines are forecasting a combined first-half net loss between RMB 7.37 billion ($1.09 billion) and RMB 8.97 billion ($1.33 billion). The second-quarter loss is estimated at more than RMB 10 billion ($1.48 billion), effectively eliminating their first-quarter profits. Air China expects a first-half net loss of RMB 2.1 billion to RMB 2.6 billion ($293 million-$363 million). China Eastern Airlines has forecast a loss of RMB 3.5 billion to RMB 4 billion, while China Southern Airlines expects a loss between RMB 2.7 billion and RMB 3.3 billion. The losses mark a significant reversal from the first quarter. China Southern reported a first-quarter net profit of RMB 1.48 billion ($216 million), recovering from a RMB 747 million loss in the same period last year. Air China posted a RMB 1.71 billion profit compared with a RMB 2.04 billion loss a year earlier, while China Eastern recorded RMB 1.63 billion profit after a previous-year loss of RMB 995 million. Fuel costs emerged as the biggest pressure point for the carriers. Jet fuel remains the largest operating expense for airlines, typically accounting for around 30%-35% of total operating costs. The escalation in international crude oil prices pushed domestic jet fuel prices significantly higher, with April prices exceeding the previous record reached in July 2022. May fuel prices were reported to be twice the level recorded during the same period in 2025. The Middle East conflict that began in March triggered a rapid increase in oil prices. Industry executives highlighted fuel exposure as the primary impact on airline operations, with fuel prices in March reportedly rising sharply compared with January and February levels. Unlike many international carriers that use extensive fuel-hedging strategies to protect against price volatility, Chinese airlines hedge only a limited portion of their fuel consumption. This has left the country’s largest carriers more exposed to sudden increases in fuel prices, particularly because of their large fleets and extensive domestic and international networks. The impact has also been amplified by weaker passenger demand. Analysts noted that China’s slowing economic growth, adverse weather conditions and increasing competition from high-speed rail have affected domestic air travel demand. Domestic travel demand reportedly declined 6.2% in May, marking one of the weakest performances among major aviation markets. The difficult environment has also affected expectations for the summer travel season. July and August passenger numbers are projected to decline 3.6% year on year, while average daily flights and economy-class fares are expected to remain under pressure.

China’s Big 3 Airlines Face $1.48 Bn Q2 Losses As Fuel Surge Erases First-Quarter Gains

Aviation Today News Desk / July 17, 2026

Beijing, China China’s three largest state-owned airlines Air China, China Eastern Airlines and China Southern Airlines are expected to record […]

Mumbai, India: Akasa Air is seeking to raise ₹1,050 crore (US$110 million) through a combination of equity and debt financing as the Mumbai-based carrier looks to strengthen its finances amid higher operating costs triggered by the recent Iran conflict. The fundraising comes as soaring aviation fuel prices, flight disruptions and longer routings have added financial pressure on airlines while Akasa continues its aggressive expansion strategy. Akasa plans to raise approximately ₹800 crore (US$84 million) through equity and at least ₹250 crore (US$26 million) through debt. The airline has approached both its existing shareholders and two new investors for the equity portion, while simultaneously holding discussions with state-run banks to secure debt financing under the Indian government's special credit line introduced to support airlines affected by the Iran conflict. The discussions remain private and the fundraising structure has not yet been finalized. For the equity raise, existing shareholders are expected to contribute around ₹500 crore (US$52.4 million), while the remaining ₹300 crore (US$31.4 million) is expected to come from one Asian investor and one American investor, according to the report. Akasa Air began operations in August 2022 under SNV Aviation Pvt. Ltd. The airline had already raised capital from investors in June 2025, but market conditions deteriorated following the conflict between Iran and the United States. The war disrupted international air travel, forced airlines to reroute flights around restricted airspace and drove up aviation turbine fuel (ATF) prices. Fuel typically accounts for around 40% of an airline's operating costs, significantly increasing financial pressure across the industry. The airline's fundraising reflects wider challenges confronting both Indian and global carriers. Tata Group-owned Air India recently reported its largest-ever annual loss and is seeking additional funding from its shareholders, including Singapore Airlines. Responding to reports of the fundraising, Akasa Air did not directly confirm the capital raise but said it looks forward to availing itself of the government's aviation credit line "as appropriate, to further strengthen our growth plans." SNV Aviation's shareholder base includes Akasa Air founder and Chief Executive Officer Vinay Dube, the family of late billionaire investor Rakesh Jhunjhunwala, a private equity fund managed by 360 ONE Asset Management, and other investors. Despite the challenging operating environment, Akasa has continued expanding more rapidly than most competitors. While overall airline capacity in India declined by 6% during March and April, Akasa increased its flight operations by 13.2% year-on-year, making it the only domestic carrier to significantly expand capacity during that period. The airline currently operates a fleet of 40 Boeing 737 MAX aircraft. For the financial year ended 31 March 2026, Akasa reported a 37% increase in operating revenue, supported by 30% growth in available seat kilometres (ASKs). Chief Financial Officer Ankur Goel also announced last month that the airline plans to expand capacity by another 30% during FY2027, underscoring management's confidence in long-term demand despite current geopolitical and cost pressures. The proposed fundraising would provide Akasa with additional liquidity to support fleet expansion, network growth and working capital requirements while mitigating the impact of elevated fuel prices and operational disruptions caused by the conflict in the Middle East. If completed, the transaction would further strengthen the airline's balance sheet as it pursues continued expansion in India's highly competitive aviation market.

Airlines

Akasa Air Seeks ₹1,050 Crore To Support Expansion Amid Rising Iran Conflict Costs

Aviation Today News Desk / July 16, 2026

Mumbai, India: Akasa Air is seeking to raise ₹1,050 crore (US$110 million) through a combination of equity and debt financing

London, United Kingdom: British low-cost carrier easyJet has rejected a third takeover proposal from the U.S.-based investment firm Castlelake, prompting the investor to take its bid public days before a regulatory deadline that could determine whether a formal offer materializes. Castlelake's latest proposal values easyJet at approximately £4.7 billion ($6.3 billion), offering shareholders 625 pence per share in cash. The airline's board unanimously rejected the approach, describing it as "highly opportunistic" and stating that it "fundamentally undervalues easyJet and its medium-term prospects." The public disclosure marks a significant escalation in the takeover battle after weeks of private discussions and rejected proposals. According to documents released by both parties, Castlelake initially approached easyJet with a non-binding proposal of 560 pence per share. After that offer was rejected, the investment firm returned with a second proposal at 600 pence per share before ultimately increasing its offer to 625 pence per share. The latest proposal was submitted on June 20 and rejected by easyJet's board on June 21. Castlelake said it decided to go public because the airline had repeatedly declined to engage meaningfully with the firm despite multiple approaches. The company stated that the third proposal represented a substantial premium to easyJet's market value before takeover speculation emerged, arguing that shareholders should be given the opportunity to consider the proposal. In its response, easyJet said the proposal arrived during a period when the airline sector was facing temporary pressures linked to geopolitical instability and rising fuel costs. The board said, "It believes that the proposal is highly opportunistic and fundamentally undervalues easyJet and its medium-term prospects." The airline added that Castlelake's valuation relied heavily on short-term market conditions rather than the company's long-term earnings potential, strategic position, asset base and growth plans. Directors also raised concerns regarding what they described as an opaque acquisition structure, uncertainties surrounding future financing arrangements and questions about regulatory implementation. The board concluded that accepting the proposal would not be in the best interests of shareholders. Castlelake's proposal is structured as an all-cash offer for easyJet shares. The firm also included a partial alternative under which shareholders could elect to receive unlisted, non-transferable and non-voting equity interests in a Castlelake-controlled acquisition vehicle instead of cash for a portion of their holdings. According to disclosures, the proposed ownership structure would consist of: • 49% ownership by Castlelake funds. • 51% ownership by European Union nationals and other investors. The structure was designed to satisfy European airline ownership regulations, which require EU airlines to remain majority owned and controlled by EU interests. To achieve compliance, Castlelake partnered with former easyJet Chief Operating Officer Peter Bellew and aerospace executive Mark Breen, who would participate in the EU-controlled ownership arrangement. The investment firm said the structure had been specifically designed to preserve easyJet's European operating rights and regulatory approvals. easyJet, however, expressed reservations about the proposed arrangement. The airline said the structure lacked transparency and created uncertainty over who would ultimately exercise control over the carrier. The board also questioned how the ownership model would operate in practice and whether it would satisfy regulatory requirements across the jurisdictions in which easyJet operates. Castlelake rejected those concerns and said its proposal was fully compliant with applicable regulations. The investment firm stated that it had no intention of dismantling easyJet's operations and instead sought to support future growth. Castlelake said the proposed acquisition would be funded through a combination of equity and debt financing. The company disclosed that Goldman Sachs had indicated its ability to arrange the required debt facilities. The firm added that the proposal was expected to be fully funded if a formal offer proceeded. Castlelake currently manages approximately $36 billion to $38 billion in assets globally and has extensive experience investing in aviation-related businesses. Its previous aviation investments have included Scandinavian Airlines (SAS), while it has also explored opportunities involving U.S.-based carriers. Under the UK Takeover Code, Castlelake has until 5:00 p.m. on June 26, 2026, to either: • Announce a firm intention to make an offer for easyJet; or • Confirm that it does not intend to proceed. Any extension would require approval from the UK Takeover Panel. As of the latest disclosures, Castlelake stressed that no formal offer had yet been made and that there remained no certainty a definitive bid would ultimately emerge. Several major shareholders appear unconvinced that the current offer adequately reflects easyJet's value. According to reports, investors believe meaningful engagement would likely require a proposal of at least 700 pence per share, implying a valuation exceeding £5.3 billion. That figure would be roughly £600 million higher than Castlelake's current proposal. Investors point to easyJet's extensive aircraft fleet, valuable airport slots, strong balance sheet and rapidly expanding holidays division as reasons the airline should command a higher valuation. The airline has repeatedly highlighted its medium-term growth plans as justification for rejecting the proposal. easyJet believes investments in newer, more fuel-efficient aircraft, operational improvements and expansion of its holidays business could support significantly higher profitability in coming years. The company has previously outlined ambitions to generate annual profits approaching £1 billion over the longer term. Management argues that the current proposal fails to capture the value of those future earnings opportunities. Market attention has increasingly focused on easyJet founder Sir Stelios Haji-Ioannou, whose family retains approximately a 15% shareholding in the airline. While Castlelake's proposal includes mechanisms that could appeal to long-term investors, Haji-Ioannou has not publicly indicated whether he supports or opposes the bid. For now, easyJet's board remains firmly opposed to the proposal, maintaining that the airline's long-term value, growth prospects and strategic position justify a substantially higher valuation than the one currently on the table.

Airlines

EasyJet Rejects Third £4.7 Billion Takeover Bid From US Based Castlelake Firm

Aviation Today News Desk / June 23, 2026

London, United Kingdom: British low-cost carrier easyJet has rejected a third takeover proposal from the U.S.-based investment firm Castlelake, prompting

New Delhi, India: Thousands of aviation employees at SpiceJet, including a significant number of pilots, continue to face salary delays stretching back several months as the financially troubled airline seeks emergency government-backed funding to stabilize operations and restore cash flow. According to internal communications reviewed by Reuters, many SpiceJet pilots have not received full salary payments since March 2026, highlighting the severity of the airline's ongoing liquidity challenges. The issue has sparked growing concerns among employees, some of whom reportedly struggle to meet daily expenses and financial commitments. SpiceJet employed approximately 375 pilots as of March 2026, and internal discussions reviewed by Reuters indicate that salary payments have remained pending for several months for many of them. Communications from a pilots' WhatsApp group involving more than 180 members revealed growing frustration over delayed wages. In one message dated May 26, SpiceJet's Senior Vice President of Flight Operations, Virendra Malhotra, acknowledged the difficulties faced by employees due to delayed salary disbursements and indicated that the remaining portion of February salaries would be released shortly. Pilots subsequently sought clarity regarding payments for March, April, and May salaries, which remained outstanding at the time. Several employees reportedly stated that delayed payments had created financial hardship, forcing some to seek assistance from family members and friends to manage essential expenses. SpiceJet acknowledged that salary disbursements had been delayed but stated that employee payments were being released in phases. According to the airline, a majority of employees had already received March salaries, while efforts continued to clear outstanding dues. The carrier maintained that employee payments remained a priority and that all obligations would be honored. As it attempts to navigate the crisis, SpiceJet is actively pursuing funding under India's Emergency Credit Line Guarantee Scheme (ECLGS). The government-backed program allows eligible airlines to access seven-year guaranteed loans of up to ₹1,500 crore ($157.2 million USD). Reports also indicate that SpiceJet has sought additional funding of approximately ₹2,000 crore ($210 million USD) under the scheme as it attempts to strengthen liquidity and support day-to-day operations. The airline said it expects business conditions to normalize over the coming months and described the funding effort as part of broader measures aimed at restoring operational stability. SpiceJet's current financial stress stems from a combination of long-term and recent challenges. The airline was India's second-largest domestic carrier in 2019, commanding roughly 15% of the market. However, its market share has since declined dramatically to approximately 3.4%, placing it fourth among Indian airlines.. The airline has reported annual losses almost every year since 2019, with the exception of FY2024-25, when it posted a small profit largely driven by one-time gains from settlements with aircraft lessors. SpiceJet currently operates an active fleet of approximately 21 aircraft. The carrier declined scheduled flights from 4,494 flights in January 2026 to 3,053 flights in May 2026, according to aviation analytics firm OAG. The airline's financial struggles have also weighed heavily on investor confidence, with its share price reportedly falling around 60% during 2026. At least two aircraft lessors have reportedly issued payment default notices to the airline this year, reflecting continuing concerns about its financial position. Despite the challenges, SpiceJet has taken steps to expand available capacity. The airline recently returned a Boeing 737 MAX aircraft to commercial service and finalized lease arrangements for three Airbus A320 aircraft scheduled to join the fleet in July. Management says the additional aircraft are intended to help meet passenger demand and support operational recovery.

Airlines

SpiceJet Employees Face Months Of Salary Delays As Airline Seeks Emergency Funding

Aviation Today News Desk / June 12, 2026

New Delhi, India: Thousands of aviation employees at SpiceJet, including a significant number of pilots, continue to face salary delays

Cairo, Egypt: Egypt’s Ministry of Civil Aviation has confirmed that EgyptAir companies recorded their highest annual profits in the airline group’s 93-year history during the 2024/2025 fiscal year, following remarks made by Civil Aviation Minister Sameh El Hefny during a recent Senate session. In an official clarification issued after the session, the ministry said several media reports had inaccurately interpreted the minister’s statements regarding the financial performance of EgyptAir Holding Company and its affiliated subsidiaries. Media reports incorrectly described the statement as EgyptAir’s “first-time profit,” while the minister had actually referred to it as the “highest annual profit in the airline’s 93-year history. The ministry clarifies that what Dr. Sameh Al-Hafny confirmed during the session is that "Egypt Airlines has achieved record financial results during the financial year 2024 / 2025 representing the highest annual profits achieved by the company since its establishment, whether in local or foreign currency, which reflects the success of the development plans aimed by the company, and improvement "Operation efficiency, and optimal utilization of resources." The Minister of Civil Aviation also addressed the ongoing efforts of the state to develop and upgrade the civil aviation sector, including improving the efficiency of the Egyptian airports system and increasing its capacity, as well as supporting plans to upgrade the fleet of Egypt Aviation Company, and improving the level of services provided to passengers, in accordance with the best international standards, which strengthens the competitiveness of the sector regionally And internationally. The clarification stressed the need for “accuracy and objectivity when circulating information in order to preserve credibility and professional standards.” During discussions in the Senate, El Hefny highlighted the difficult economic environment facing airlines globally, stating that aviation remains a low-margin industry with average profit margins ranging between “2 percent and 4 percent” due to high operational and fuel costs. The minister also noted that increases in global fuel prices during March and April added nearly USD 53 million in additional operating costs to the sector. Officials said the ministry continues to implement modernization plans across Egypt’s aviation industry, including airport development projects, upgrades to passenger services and fleet expansion initiatives designed to improve operational performance and passenger experience. According to reports citing the minister’s remarks, EgyptAir is also moving forward with plans to add 28 aircraft as part of its broader modernization and growth strategy.

Airlines

EgyptAir Posts Record Annual Profits In 93 Years Despite Global Aviation Cost Pressures

Aviation Today News Desk / May 14, 2026

Cairo, Egypt: Egypt’s Ministry of Civil Aviation has confirmed that EgyptAir companies recorded their highest annual profits in the airline

United States

US Weighs Possible $500M Bailout For Spirit Airlines Amid Crisis, Trump Signals Support

Aviation Today News Desk / April 24, 2026

Washington, United States: The Spirit Airlines bailout debate has intensified after the Trump administration entered advanced negotiations to provide emergency

SpiceJet

SpiceJet Warns Of Collapse Amid $17M Court Battle And Mounting Debt Pressure Crisis

Aviation Today News Desk / April 15, 2026

Gurugram, India: India’s low-cost carrier SpiceJet has told the Delhi High Court that it faces a serious risk of operational

Air India

Air India CEO Campbell Wilson Steps Down Amid Financial, Operational Pressures

Aviation Today News Desk / April 7, 2026

New Delhi, India: Air India has officially announced that its Chief Executive Officer and Managing Director Campbell Wilson has stepped

India

Govt Removes Fare Caps As Airlines Oppose 60% Seats Free Of Selection Charges

Aviation Today News Desk / March 24, 2026

New Delhi, India: A policy push by the government to strengthen passenger rights and enforce fare transparency has triggered sharp

India

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely

Aviation Today News Desk / March 20, 2026

New Delhi, India: India’s aviation sector has incurred cumulative losses of ₹24,819 crore over a three-year period from FY2022–23 to

aviation finance

China’s Big 3 Airlines Face $1.48 Bn Q2 Losses As Fuel Surge Erases First-Quarter Gains

Akasa Air Seeks ₹1,050 Crore To Support Expansion Amid Rising Iran Conflict Costs

EasyJet Rejects Third £4.7 Billion Takeover Bid From US Based Castlelake Firm

SpiceJet Employees Face Months Of Salary Delays As Airline Seeks Emergency Funding

EgyptAir Posts Record Annual Profits In 93 Years Despite Global Aviation Cost Pressures

US Weighs Possible $500M Bailout For Spirit Airlines Amid Crisis, Trump Signals Support

Air India CEO Campbell Wilson Steps Down Amid Financial, Operational Pressures

Govt Removes Fare Caps As Airlines Oppose 60% Seats Free Of Selection Charges

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely

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