China Airlines (2610) Q4 2023 earnings summary

Executive summary

• FY2023 revenue rose to NT$184.817bn from NT$150.722bn; operating profit reached NT$10.157bn vs NT$2.585bn, and net profit was NT$7.471bn vs NT$2.245bn.

• Passenger revenue increased to NT$115.723bn from NT$25.482bn, while cargo revenue declined to NT$57.146bn from NT$116.250bn.

• Operating cash flow was NT$55.846bn; year-end cash and equivalents were NT$30.392bn, down from NT$34.980bn.

Financial highlights

• Gross profit was NT$23.831bn vs NT$11.370bn; operating costs were 87% of revenue vs 92%.

• Profit before tax was NT$9.305bn vs NT$2.661bn; income tax expense was NT$1.834bn vs NT$415m.

• Net profit attributable to owners was NT$6.819bn vs NT$2.860bn; basic EPS was NT$1.13 vs NT$0.48.

• Other comprehensive loss was NT$903m, compared with NT$3.044bn in 2022; total comprehensive income was NT$6.568bn vs a loss of NT$799m.

Outlook and guidance

• Revised useful lives for eight B747-400F freighters and two 80C2 engines take effect May 1, 2024; estimated 2024 depreciation expense increase is NT$679m.

• Deliveries planned for 2024–2026 include eleven A321neo aircraft; three remaining 777F aircraft are expected in 2023–2024, with seven of ten delivered by year-end 2023.

• Twenty-four 787-9/787-10 aircraft are scheduled for delivery from 2025–2028; three ATR72-600 aircraft are expected in 2023–2024 and three more in 2025.