Juneyao Airlines (603885) investor relations material

Executive summary

• Revenue for the first half of 2026 reached RMB 12.08 billion, up 9.16% year-over-year, but net profit attributable to shareholders dropped 70.27% to RMB 150 million due to a sharp increase in jet fuel costs driven by international oil price volatility.

• Operating cash flow improved 39.31% year-over-year to RMB 4.33 billion, reflecting stronger cash collection from sales.

• The company maintained a robust operational scale, operating 130 aircraft with an average age of 8.51 years, and continued to optimize its route network in both domestic and international markets.

Financial highlights

• Operating income: RMB 12.08 billion (+9.16% YoY); net profit attributable to shareholders: RMB 150 million (-70.27% YoY); operating cash flow: RMB 4.33 billion (+39.31% YoY).

• Gross margin and profitability declined sharply due to a 40.10% increase in jet fuel costs, which accounted for RMB 4.49 billion of main business costs.

• Basic and diluted EPS: RMB 0.07 (down 69.57% YoY); ROE: 1.41% (down 4.13 percentage points YoY).

• Net assets attributable to shareholders fell 28.85% to RMB 8.64 billion at period end.

Outlook and guidance

• The company expects continued cost pressure from volatile international oil prices and macroeconomic uncertainties.

• Management will focus on cost control, digital transformation, and network optimization to enhance resilience and profitability.