China Airlines (2610) investor relations material

Executive summary

• Q1 2026 saw strong financial and operational performance, with revenue and net income both rising year-over-year, driven by robust passenger and cargo demand despite geopolitical disruptions.

• Passenger and cargo segments both contributed to growth, with notable increases in load factor and export volumes, especially in high-tech sectors.

• Continued fleet renewal and digital innovation enhanced service quality and operational efficiency.

Financial highlights

• Operating revenue for Q1 2026 was NT$57 billion, up 8% year-over-year; net operating income reached NT$6.4 billion, up 13.9%.

• Net income after tax was NT$5.85 billion, a 25.6% increase year-over-year; EPS rose 23.2% to NT$0.85.

• Passenger revenue grew 9.1% and cargo revenue increased 5.2% year-over-year.

• March passenger revenue surged 26% year-over-year, with cargo up 7%.

Outlook and guidance

• Passenger and cargo demand expected to remain resilient, with growth supported by new fleet deliveries and expanded network capacity.

• Risks include potential jet fuel cost increases and fare pressure due to Middle East disruptions.

• Cargo growth projected to continue, driven by AI, semiconductor, and electronics exports.