China's top airlines are cautious about their outlook due to rising fuel costs and ongoing concerns over the Middle East crisis. The country's aviation industry is already dealing with oversupply and overproduction in the domestic market. China Eastern recorded a 22.7% rise in international passenger traffic in 2025, while China Southern posted a 19.6% rise and Air China's international traffic was up 15%. All three airlines attributed their focus on the international market to a renewed focus on international growth. However, analysts warned that holiday demand could be threatened by sharply higher fuel costs. As of December 31, 2025, China Eastern held outstanding jet fuel hedge positions of 500,000 barrels, set to expire in 2026.