Air China Limited (HKG: 00753) has issued a profit warning announcement. Based on preliminary calculations by the company's finance department, it is anticipated that the company will incur a loss for the first half of 2026. The net loss attributable to shareholders of the listed company is estimated to be between approximately RMB 2.1 billion and RMB 2.6 billion. The net loss attributable to shareholders after deducting non-recurring gains and losses is projected to be between approximately RMB 2.3 billion and RMB 3.1 billion.

For the same period last year, the company reported a total loss of RMB 27.89 billion, with a net loss attributable to shareholders of RMB 1.806 billion.

During the first half of 2026, the Chinese economy maintained overall stable operation, and the aviation market continued its steady growth trajectory, starting off positively. The company seized development opportunities, focusing on areas such as safety in production, profitability enhancement, cost control, service quality, and digital-intelligent transformation, making every effort to improve quality and efficiency. It dynamically optimized production organization, effectively expanded its input scale, scientifically managed volume-price relationships to steadily improve revenue quality, and strictly controlled costs and expenses while actively promoting cost reduction and efficiency gains.

In the first half, the company's overall operating performance was characterized by increased investment, production, and revenue, achieving substantial profitability in the first quarter. However, due to the impact of geopolitical conflicts in the Middle East, jet fuel prices remained elevated, significantly squeezing airline profit margins. Consequently, the company expects its operating performance for the first half of 2026 to show a loss.