Shanghai Juneyao Airlines Co., Ltd. (Juneyao Airlines) announced on July 11 that it expects to see a 58.46% to 72.30% year-on-year decrease in its net profit attributable to shareholders in the first half of this year, with a shift from profit to loss in the second quarter.
In a press release titled “Performance Forecast Announcement for the First Half of 2026,” Juneyao Airlines stated that it anticipates a net profit attributable to the company’s shareholders of 140 to 210 million yuan for the first half of 2026, representing a decrease of 295.49 to 365.49 million yuan compared to the same period last year, a year-on-year decline of 58.46% to 72.30%. The forecast also indicates an expected net profit excluding non-recurring gains and losses of 59 to 88.5 million yuan, with a year-on-year decrease of 319.1 to 348.6 million yuan, a drop of 78.29% to 85.53%.
The company attributed the losses to the impact of changes in the international energy market, with a significant increase in jet fuel prices in the second quarter directly raising the core operating costs of the company, leading to a loss in the second quarter and subsequently affecting the overall performance.
However, Juneyao Airlines reported a profit in the first quarter of this year. According to the quarterly report for 2026 released on April 30, the airline achieved a revenue of 5.98 billion yuan, a year-on-year increase of 4.51%, and a net profit attributable to shareholders of 441 million yuan, a growth of 27.69%.
According to reports by The Paper, calculations show that Juneyao Airlines is expected to swing to a net loss ranging from 301 to 231 million yuan in the second quarter compared to the same period last year.
In mid-March this year, due to the impact of geopolitical conflicts in the Middle East, international oil prices and aviation fuel costs surged. Aviation fuel accounts for more than 30% of airlines’ operating costs, and the significant fluctuation in international oil prices will have a major impact on fuel prices and fuel surcharge revenue for airlines, affecting their business performance.
Willie Walsh, director general of the International Air Transport Association, stated that disruptions in route operations and rising fuel costs caused by the Middle East war have worsened the prospects for airlines. The rapid increase in aviation fuel prices by 70% is affecting the profitability of all airlines.
As of the market close on July 10, Juneyao Airlines’ stock was trading at 10.28 yuan per share, up 1.18%. However, the airline’s stock price has fallen by nearly 30% since the beginning of the year.