Why China's airlines suffer more from the Iran war than global rivals

Key points

• MAY 16: China Southern Airlines aircraft are seen parked at Zhengzhou Xinzheng International Airport on May 16, 2026, in Zhengzhou, Henan Province, China.
• China's biggest airline stocks have suffered more than others since the war in Iran began, as a combination of factors weighs them down.
• The country's carriers are caught in a pincer of higher fuel costs and a price-wary domestic market being eroded by high-speed rail.
• Jet fuel prices soared after the U.S. and Israel launched attacks on Iran in February.
• And while many global peers are hedged against swings in fuel prices, Chinese airlines hedge little of their fuel purchases, making them vulnerable to a harder hit from the prolonged rise in oil prices.