CAF News & Analysis

China Airlines (CAF) Face 30% Stock Drop Amid Iran Conflict

Chinese airline stocks, including Air China and China Southern Airlines, have declined about 30% since the onset of the Iran war in February. Analysts from HSBC project a combined net loss of 22 billion yuan ($3.2 billion) for the 'Big Three' airlines in 2026, reversing previous profits. During the week ending May 14, domestic passenger flights in China decreased by 12.7% year-on-year, with cancellation rates soaring to nearly 30%. Jet fuel prices spiked from $93 to a record $242 per barrel, now stabilizing around $163, leading to increased surcharges on fares.