China Airlines (2610) Q2 2025 earnings summary

Executive summary

• Achieved NT$104.1 billion in revenue and NT$8.9 billion net profit in H1 2025, with net profit attributable to parent up 23% YoY and EPS up 22% YoY.

• Operating revenue for the six months ended June 30, 2025, was up 5% year-over-year, with net profit up 25% from the prior year period.

• Gross margin remained stable at 82%, while operating profit margin improved to 11% from 8% YoY.

• Passenger revenue slightly declined YoY, but cargo revenue surged 18.8% YoY, driven by strong demand for AI and semiconductor shipments.

• North America passenger routes grew 13%, and cargo capacity, volume, and yield all increased, with key markets in North America, Europe, and Southeast Asia.

Financial highlights

• Operating revenue up 5.2% YoY; net operating income up 42.2% YoY; net income after tax up 24.6% YoY.

• Operating revenue for Q2 2025 was NT$51.3 billion, up 2% YoY; gross profit for the quarter was NT$9.6 billion.

• Net profit for Q2 2025 was NT$4.25 billion, up 14% from Q2 2024.

• Book value per share increased to NT$15.22; debt ratio decreased by 9ppt since 2019.

• Fuel costs dropped 8.9% YoY due to lower prices, despite a 4.4% increase in consumption.

Outlook and guidance

• IATA forecasts 2025 global air passenger traffic to grow 5.8%, with Asia-Pacific as the main driver.

• Global air cargo volume expected to rise slightly by 0.5% in 2025, with ongoing demand for high-tech exports.

• The company continues to invest in fleet renewal, with significant aircraft purchase commitments extending through 2031.

• U.S. tariff policy introduces risks and opportunities, including cost volatility and supply chain shifts.

• Ongoing assessment of IFRS amendments and new standards, with no material impact expected in the near term.