China Airlines (2610) Q1 2025 earnings summary

Executive summary

• Operating revenue in Q1 2025 rose 8.5% year-over-year to TWD 52.77 billion, with net income after tax up 36.7% to TWD 4.66 billion.

• Gross margin improved to 18% from 16% year-over-year, and basic EPS rose to NT$0.69 from NT$0.51.

• Cargo revenue surged 27.5% year-over-year, offsetting a slight 1% decline in passenger revenue.

• The company continued fleet modernization, with significant aircraft purchase commitments and ongoing asset sales.

• Cash dividends of NT$0.79587 per share for 2024 were proposed, pending shareholder approval.

Financial highlights

• Net operating income increased 46.8% year-over-year to TWD 5.65 billion.

• Operating costs increased 5.1% year-over-year to NT$43.15 billion, while gross profit rose 26.6% to NT$9.62 billion.

• Profit before tax was NT$5.80 billion, up 36.4% year-over-year; net profit attributable to owners was NT$4.19 billion.

• Operating revenue is up 19% compared to Q1 2023 and 22% above pre-pandemic Q1 2019 levels.

• Total fuel cost decreased 3.8% year-over-year due to a 10.9% drop in average jet fuel prices.

Outlook and guidance

• Global air travel growth slowed to single digits in Q1 2025, with capacity and traffic increases well below 2024 levels.

• IMF revised down 2025 global and major economy growth forecasts due to trade tariffs and macroeconomic uncertainty.

• Tariff policies and economic slowdown may impact demand, costs, and supply chain dynamics; ongoing monitoring and flexible response planned.

• The company is assessing the impact of new IFRS standards effective from 2026 and 2027, with no material effect expected from current adoptions.

• Ongoing fleet expansion and modernization are expected to support future growth, with major aircraft deliveries scheduled through 2029.