Air China (753) Q4 2024 earnings summary

Executive summary

• Revenue increased 18.14% year-over-year to RMB 166,699 million, driven by strong recovery in passenger and cargo demand, with international passenger revenue surging 74.63%.

• Net loss attributable to equity shareholders narrowed sharply to RMB 233 million from RMB 1,038 million, with EPS improving to -0.01 from -0.07.

• Passenger numbers increased 23.8% year-over-year, with international traffic up 142.4%.

• Fleet size reached 930 aircraft, with 36 new additions, 11 retirements, and an average fleet age of 9.9 years.

• No dividend proposed for 2024 due to negative distributable profits.

Financial highlights

• Operating expenses rose 18% year-over-year, mainly due to higher jet fuel, labor, and maintenance costs.

• Operating profit declined 23.23% year-over-year to RMB 2,218 million.

• Cash and cash equivalents increased 40% year-over-year to RMB 21,039 million.

• Finance costs decreased 7.8% to RMB 6,399 million; net exchange losses reduced to RMB 760 million.

• Gearing ratio at 88.2%, with current ratio at 0.30 and net current liabilities of RMB 96,923 million.

Outlook and guidance

• Focus for 2025 includes safety, profitability, service upgrades, digital transformation, and green development.

• Strategic priorities: hub network optimization, cost leadership, product/service upgrades, and digital innovation.

• Market recovery expected to continue, with emphasis on international expansion and efficiency.