Air China (753) investor relations material

Executive summary

• Revenue rose 10.54% year-over-year to RMB89.27 billion for the six months ended 30 June 2026, driven by growth in both passenger and cargo segments, but ended with a net loss of RMB3.43 billion, widening from RMB2.71 billion a year earlier.

• Passenger traffic and load factor improved, with 79.7 million passengers carried (up 3.35%) and passenger load factor up 4.02 ppt to 84.74%.

• Operating expenses increased 12.38% year-over-year, mainly due to a 34.69% surge in jet fuel costs and expanded fleet operations.

• The company issued new shares, raising RMB20 billion to repay debt and replenish working capital.

• SOE reform initiatives received Grade A in SASAC assessment, with digital and intelligent transformation underway.

Financial highlights

• Revenue: RMB89.27 billion (+10.54% YoY); air passenger revenue: RMB80.33 billion (+9.75% YoY); air cargo and mail revenue: RMB4.35 billion (+21.46% YoY).

• EBITDA: RMB12.74 billion (down 3.05% YoY); EBITDAR: RMB13.66 billion.

• Net loss: RMB3.43 billion (vs. RMB2.71 billion loss YoY); loss per share: RMB0.13.

• Total assets: RMB352.21 billion; equity attributable to shareholders: RMB59.83 billion.

• No interim dividend declared.

Outlook and guidance

• Domestic market expected to remain robust, but international market faces uncertainties, especially in North America.

• Plans for net fleet increases: 17 aircraft in 2026, 31 in 2027, and 67 in 2028; ongoing investment in new aircraft and route network optimization.

• Ongoing focus on cost control, digital transformation, and service quality improvement.