The carrier CHINA SOUTH AIR (HKEX: 01055) has issued a forecast indicating an expected net loss attributable to shareholders for the first half of 2026 in the range of approximately 3.473 billion yuan to 3.973 billion yuan.

The company also anticipates a net loss after excluding non-recurring gains and losses for the same period to be between approximately 4.480 billion yuan and 4.980 billion yuan.

During the first half of 2026, the domestic economy maintained steady growth, and the civil aviation market demonstrated robust development, with sustained demand for travel and tourism among the public.

The airline's total transport turnover continued to grow, leading to an expansion in revenue scale.

In the first quarter, the company capitalized on opportunities presented by the peak travel season and market recovery, continuously optimizing its route network and passenger-cargo layout, which resulted in a significant year-on-year improvement in overall performance.

However, from March onwards, the aviation fuel price experienced severe volatility due to international geopolitical developments, placing immense pressure across the entire industry.

The company's fuel costs for the first half surged significantly compared to the same period last year.

In response to this sudden external shock, the company has adhered to its principles of strengthening systems, enhancing capabilities, and intelligent risk control to maintain a baseline of safe operations.

It has also responded swiftly, formulated specialized countermeasures, dynamically adjusted capacity, strengthened passenger and cargo sales, implemented lean cost control, enhanced industrial collaboration, and deepened the construction of its strategic management system.

These multi-faceted measures are aimed at comprehensively increasing revenue, reducing expenditure, and minimizing the overall impact.

Nevertheless, due to the influence of objective factors such as the complex international situation, the company expects its operating performance for the first half of 2026 to record a loss.