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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 […]

Kansas City, United States: An Alaska Airlines Boeing 737 MAX 9 operating a scheduled flight from Seattle to Kansas City landed safely at Kansas City International Airport (MCI) late on July 15 after the flight crew reported seeing flames from one of the aircraft's engines during the approach, prompting an Alert 3 emergency response from airport rescue and firefighting personnel. No injuries were immediately reported, and the situation was brought under control within minutes. According to FlightAware data, the aircraft departed Seattle-Tacoma International Airport at 8:31 p.m. CDT and arrived at Kansas City International Airport at 11:54 p.m., approximately five minutes ahead of schedule. The aircraft involved was a Boeing 737 MAX 9. Shortly before midnight, Kansas City Fire Department Airport Rescue and Fire Fighting (ARFF) units were dispatched after an Alert 3 was declared for the arriving Alaska Airlines flight. Emergency radio transmissions captured by Broadcastify indicated dispatchers instructed ARFF-1 and supporting units to respond immediately. Within two minutes of arriving at the gate, ARFF personnel reported that the aircraft was parked safely and that no visible fire or smoke was evident. Police officers were already at the scene as emergency crews began assessing the aircraft. A subsequent radio update on July 16 stated that the aircraft had experienced an engine fire involving the No. 2 engine, but responders found that the fire had already gone out upon arrival. According to the radio traffic, the pilot had reported seeing flames, after which the aircraft was evacuated as a precaution while firefighters investigated the situation. Responders advised that the engine fire was extinguished and that everything was under control. The emergency details were obtained from Kansas City Fire Department ARFF radio traffic recorded by Broadcastify. The Federal Aviation Administration (FAA) is expected to investigate the reported engine event, while Alaska Airlines is expected to inspect the aircraft before it returns to service.

Incidents

Alaska Airlines Lands Safely In Kansas City After Reported Mid-Air Engine Fire Scare

Aviation Today News Desk / July 17, 2026

Kansas City, United States: An Alaska Airlines Boeing 737 MAX 9 operating a scheduled flight from Seattle to Kansas City

Airlines

Aer Lingus To Cut Up To 500 Jobs And Trim Flight Network In Major Cost Restructuring

Aviation Today News Desk / July 17, 2026

Dublin, Ireland: Aer Lingus has unveiled a sweeping restructuring programme that could place up to 500 jobs at risk as

Mirabel, Canada: Airbus Canada and Pratt & Whitney have declared that the technical issues that disrupted the Airbus A220 programme for several years are nearing resolution, with both companies expecting no A220 aircraft to remain grounded due to geared turbofan (GTF) engine problems by the end of 2026. The update was shared during a media briefing at Airbus Canada's A220 final assembly facility in Mirabel, Québec, where company executives outlined the programme's improving operational outlook. According to reporting by Leeham News & Analysis, only around 2% to 3% of grounded A220 aircraft are now out of service because of GTF engine-related issues, a sharp improvement from previous years when engine durability problems forced airlines to ground significant portions of their fleets. Guillaume Chevasson, Head of the A220 Programme and Chief Executive of Airbus Canada, said the programme had turned a corner after years of supply chain disruptions and engine-related operational challenges. "The AOG (Aircraft on Ground) crisis is over," Chevasson said during the briefing, adding that technical issues affecting the A220 fleet were now "close to zero." He noted that Airbus' collaboration with Pratt & Whitney had strengthened considerably, describing the relationship as being at a "very good level." According to Chevasson, the PW1500G geared turbofan engine is now performing as intended and has reached reliability levels approaching those of the Airbus A320 family. He added that the engine has matured sufficiently for intensive, high-cycle operations typical of regional and short-haul routes. A series of design improvements incorporated into the latest engine standard has significantly enhanced reliability, helping reduce operational disruptions for airlines. Chevasson also said the A220 programme's supply chain, which has been affected by global industrial disruptions in recent years, is showing clear signs of stabilisation. He highlighted the integration of Airbus' Belfast wing manufacturing facility formerly owned by Spirit AeroSystems as another milestone in strengthening programme stability. Bringing the facility under Airbus ownership has provided greater industrial control and improved production resilience, he said. Beyond the current programme recovery, Airbus is also advancing work on a stretched A220 variant, commonly referred to as the A220-500. While no formal launch decision has been taken, Chevasson confirmed that studies have been accelerated and Airbus is working closely with airline customers to develop what he described as a "simple" and "low-risk" aircraft that could be brought to market quickly. The latest update marks a significant milestone for the A220 programme, which has faced years of challenges linked to Pratt & Whitney GTF engine family. The PW1500G powering the A220, along with the PW1100G used on the A320neo family, has been affected by durability issues and inspections stemming from manufacturing defects in powdered metal components, leading to widespread aircraft groundings and maintenance backlogs across the aviation industry. Pratt & Whitney has been expanding maintenance, repair and overhaul (MRO) capacity and implementing design improvements to accelerate engine repairs and reduce turnaround times. Airbus has also repeatedly stated that engine availability and supply chain constraints have been among the primary factors limiting A220 production in recent years. The latest comments from Airbus Canada indicate those efforts are beginning to deliver tangible results, with technical issues now largely resolved and the programme entering a more stable phase as manufacturers work toward eliminating engine-related A220 groundings before the end of 2026.

MRO

Airbus, Pratt Say A220 GTF Groundings To End By 2026 As Engine Reliability Improves

Aviation Today News Desk / July 16, 2026

Mirabel, Canada: Airbus Canada and Pratt & Whitney have declared that the technical issues that disrupted the Airbus A220 programme

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

Incidents

Air Peace A320 Suffers Engine Damage After Ground Vehicle Collision At Lagos Airport

Aviation Today News Desk / July 16, 2026

Lagos, Nigeria: An Air Peace Airbus A320 sustained significant engine damage after being struck by a baggage conveyor belt vehicle

New Delhi, India: More than a year after the crash of Air India Flight AI171 near Ahmedabad claimed 260 lives, India's Aircraft Accident Investigation Bureau (AAIB) has informed the Supreme Court that the investigation is entering its final stages, with the draft final investigation report expected to be ready in October 2026 after the completion of technical analysis and mandatory international consultations. In a detailed affidavit filed jointly by the Ministry of Civil Aviation and the AAIB, the Centre said the investigation activities are expected to be completed within approximately six weeks, subject to the resolution of a few remaining external dependencies. Once the analysis phase is concluded, investigators will prepare the draft final report before circulating it to participating States under international aviation rules. Air India Flight AI171, a Boeing 787-8 Dreamliner operating from Ahmedabad to London Gatwick, crashed shortly after takeoff on June 12, 2025, striking a residential area near the airport. The accident killed 241 of the 242 people on board, along with 19 people on the ground, taking the total death toll to 260. It became one of India's deadliest aviation disasters in decades. Under ICAO Annex 13, accident investigations are intended solely to improve aviation safety and prevent future accidents, not to determine civil or criminal liability. The AAIB reiterated before the Supreme Court that it is India's sole statutory authority for investigating aircraft accidents and argued there is no legal basis for a court-monitored or parallel investigation, opposing petitions seeking an independent probe. The matter is scheduled to be heard by the Supreme Court on July 17. The affidavit states that 49 of the 66 mandatory investigative procedures applicable to a major international accident have already been completed. These include preservation of evidence, recovery and examination of the flight recorders, technical analysis of aircraft systems, participation of accredited international representatives and consultations with stakeholders. The remaining work primarily involves completing technical analysis and fulfilling international procedural requirements before the draft report can be finalized. The AAIB explained that the final report could not be completed within one year because of the investigation's complexity and the involvement of multiple international agencies. In accordance with ICAO rules, when an investigation cannot be completed within 12 months, the investigating authority must issue an interim statement describing the progress made. Accordingly, the AAIB released an interim statement around the first anniversary of the accident rather than a final report. Earlier in the investigation, the AAIB's preliminary findings revealed that both engine fuel control switches moved from the RUN position to CUT OFF within seconds of takeoff, causing both engines to lose thrust. Cockpit voice recordings captured one pilot asking why the switches had been moved, while the other responded that he had not done so. The switches were subsequently returned to the RUN position, but the aircraft was unable to regain sufficient thrust before crashing. Those findings answered some questions while leaving investigators with significant unresolved issues regarding how the switches moved and whether any mechanical, human or other factors were involved. According to the latest affidavit, investigators are still completing analysis of the remaining technical evidence before reaching final conclusions. Once the draft report is prepared, it must be circulated to the participating States under ICAO Annex 13, including the U.S. National Transportation Safety Board (NTSB) as the accredited representative for the State of Design and Manufacture of the Boeing 787. Those States are entitled to provide "significant and substantiated comments," a consultation process that the Centre said could take 30 to 60 days, depending on the complexity of the responses received. Only after those comments are considered can the AAIB finalize and publish its investigation report. The AAIB also defended maintaining strict confidentiality over sensitive investigative material, including cockpit voice recorder recordings and transcripts, witness statements, air traffic control communications, medical records and draft report contents. It said these protections are mandated by both Indian law and ICAO standards to preserve the integrity of safety investigations.

Investigation

AAIB Says Air India AI171 Crash Investigation To Reach Draft Report Stage In October

Aviation Today News Desk / July 15, 2026

New Delhi, India: More than a year after the crash of Air India Flight AI171 near Ahmedabad claimed 260 lives,

Incidents

Tokyo Court Sentences ANA Captain To Prison For Sexually Assaulting Flight Attendant

Aviation Today News Desk / July 15, 2026

Tokyo, Japan: An All Nippon Airways (ANA) captain has been sentenced to prison by a Japanese court after being found

Airlines

Qantas Named The World’s Most Punctual Airline In A Strong Operational Turnaround

Aviation Today News Desk / July 14, 2026

Sydney, Australia: Qantas has been ranked the world’s most punctual major airline for June 2026, achieving its best operational reliability

Shannon, Ireland: United Airlines Flight UA509, a Boeing 767-400ER operating from Rome Fiumicino Airport (FCO), Italy, to Newark Liberty International Airport (EWR), New Jersey, was forced to divert to Shannon Airport (SNN), Ireland, on July 11 after the flight crew reported right-engine vibrations and an unusual odor in the cabin while crossing the North Atlantic. The aircraft was carrying 227 passengers and crew, and all landed safely with no injuries. The aircraft, registered N76065, departed Rome at 1:36 p.m. local time for the scheduled transatlantic service to Newark. Approximately three hours into the flight, while cruising at FL340 (34,000 feet) over the Atlantic and around 400 kilometres south of Ireland about 550 kilometres from Shannon Airport the pilots detected abnormal vibrations from the aircraft's right General Electric CF6 engine. The crew also reported a noticeable smell inside the cabin, prompting them to discontinue the oceanic crossing and request an immediate diversion to Shannon, one of the primary diversion airports for North Atlantic flights. According to reports, the affected engine remained operational but was reduced to idle thrust as a precaution. Air traffic controllers cleared the aircraft to divert, after which the crew descended from cruise altitude to facilitate the approach into Shannon. Because of the amount of fuel still onboard, the pilots advised they would be conducting an overweight landing, a procedure in which an aircraft lands above its normal maximum landing weight when an immediate landing is considered the safest course of action. At Shannon Airport, emergency procedures were activated before the aircraft's arrival. Airport authorities alerted their fire and rescue service after the crew requested emergency vehicles to be positioned alongside the runway. The Boeing 767 landed safely on Runway 06 at approximately 3:57 p.m. local time after more than four hours in the air. Fire and rescue vehicles escorted the aircraft along the runway before it stopped briefly on a taxiway, where firefighters carried out a visual inspection of the right engine. Given the overweight landing, emergency personnel also examined the aircraft's undercarriage and landing gear to ensure there was no overheating caused by the heavier-than-normal touchdown. Following the inspections, the aircraft taxied under its own power to the terminal while accompanied by emergency vehicles. United Airlines confirmed that the diversion was carried out "to address an issue with one engine." The airline said all 227 occupants disembarked safely without injury. Passengers were provided with hotel accommodation, compensation where applicable, and were rebooked on the next available flights to their destinations. Flight tracking data showed the aircraft remained on the ground in Shannon following the incident while maintenance personnel conducted inspections to determine the cause of the reported engine vibrations and cabin odor. The remainder of Flight UA509 to Newark was cancelled. As of the latest available updates, aviation authorities had not released findings on the cause of the technical issue, and the aircraft continued to undergo maintenance evaluation before returning to service.

Incidents

United Boeing 767 Diverts To Shannon After Engine Vibrations On Rome-Newark Flight

Aviation Today News Desk / July 14, 2026

Shannon, Ireland: United Airlines Flight UA509, a Boeing 767-400ER operating from Rome Fiumicino Airport (FCO), Italy, to Newark Liberty International

aviation news

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

Alaska Airlines Lands Safely In Kansas City After Reported Mid-Air Engine Fire Scare

Aer Lingus To Cut Up To 500 Jobs And Trim Flight Network In Major Cost Restructuring

Airbus, Pratt Say A220 GTF Groundings To End By 2026 As Engine Reliability Improves

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

Air Peace A320 Suffers Engine Damage After Ground Vehicle Collision At Lagos Airport

AAIB Says Air India AI171 Crash Investigation To Reach Draft Report Stage In October

Tokyo Court Sentences ANA Captain To Prison For Sexually Assaulting Flight Attendant

Qantas Named The World’s Most Punctual Airline In A Strong Operational Turnaround

United Boeing 767 Diverts To Shannon After Engine Vibrations On Rome-Newark Flight

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