China Airlines (2610) Q3 2025 earnings summary

Executive summary

• Revenue for Q1–Q3 2025 reached NT$155 billion, up 2.7% year-over-year, with operating net profit at NT$15.8 billion (+18.1%) and EPS at NT$1.81 (+5.8%).

• Net income after tax was NT$12.25 billion (+8% YoY), with total assets at NT$337.94 billion and equity attributable to owners at NT$94.3 billion as of September 30, 2025.

• Passenger revenue declined 3.9% YoY, while cargo revenue surged 13.7% YoY, driven by strong demand for AI and semiconductor shipments.

• The auditors issued a qualified review opinion due to some non-significant subsidiaries and equity-method investments not being reviewed, but found no material misstatements.

• Ongoing fleet modernization and network expansion, including new routes to Phoenix and increased frequencies to Europe and Asia.

Financial highlights

• Operating revenue: NT$154.98 billion (+2.7% YoY); net operating income: NT$15.76 billion (+18.1% YoY).

• Net income after tax: NT$12.25 billion (+8% YoY); EPS: NT$1.81 basic and NT$1.78 diluted (+5.8% YoY).

• Cargo revenue: NT$48.71 billion (+13.7% YoY); passenger revenue: NT$93.39 billion (–3.9% YoY); ancillary revenue for Q1–Q3 2025 was NT$1.94 billion, up 10% YoY.

• Gross profit margin for the nine months was 82%, consistent with the prior year.

• Cash and cash equivalents at period end were NT$48.12 billion, down from NT$51.21 billion a year earlier.

Outlook and guidance

• Global and Asia-Pacific GDP growth expected to support steady air travel demand through 2027, with passenger traffic projected to grow 3.6–4.2% annually.

• Cargo market outlook remains positive, with continued demand for AI, semiconductors, e-commerce, and cold chain logistics.

• Brent crude oil prices forecasted to average US$52–$63 per barrel in 2026, supporting manageable fuel costs.

• The Group is actively expanding its fleet, with significant aircraft purchase commitments for A321neo, B787-9/10, B777-9, B777-8F, and A350-1000 models, with deliveries scheduled through 2031.

• Ongoing assessment of new IFRS standards, including IFRS 18, with expected adoption in 2028.