China Airlines (2610) Q4 2025 earnings summary

Executive summary

• 2025 revenue reached NT$209.1 billion, with net operating income of NT$20.8 billion and EPS of NT$2.42, reflecting steady growth year-over-year.

• Consolidated financial statements for 2025 and 2024 were audited with an unmodified opinion, confirming fair presentation in accordance with IFRS and local regulations.

• Passenger revenue declined 2.4% YoY, while cargo revenue grew 10.1%, driven by strong demand in North America and China.

• Premium cabin sales and stable cargo revenue contributed to a more balanced revenue mix and improved earnings quality.

• Key audit matter identified was international passenger revenue recognition due to complex workflows and risk of premature revenue recognition.

Financial highlights

• Operating revenue increased 2.6% YoY to NT$209.1 billion; net income after tax rose 4.4% to NT$16.17 billion.

• Gross profit margin improved to 18% in 2025 from 17% in 2024.

• Basic EPS for 2025 was NT$2.42, up from NT$2.38 in 2024.

• Cash and cash equivalents at year-end 2025 were NT$57.6 billion, down from NT$66.6 billion in 2024.

• Total assets increased to NT$354.8 billion at year-end 2025, up from NT$327.4 billion.

Outlook and guidance

• Global passenger demand is expected to grow 4.9% YoY in 2026, with Asia-Pacific leading growth.

• The Group is expanding its fleet with significant aircraft purchase commitments, including Boeing 787-9, 787-10, 777-9, 777-8F, and Airbus A321neo, A350-1000, and A350-900 models, with deliveries scheduled through 2033.

• Strong appetite for overseas travel and business recovery projected to drive record passenger volumes in 2026.

• Global air cargo volume forecasted to rise 2.4% YoY in 2026, with continued focus on high-value and e-commerce shipments.

• Ongoing capital expenditures and prepayments for aircraft signal continued growth and modernization.