China Eastern Airlines (600115) Q4 2023 earnings summary

Executive summary

• 2023 revenue rose 145.6% YoY to RMB 119.17 billion; the net loss narrowed by RMB 29.188 billion to RMB 8.168 billion as operations recovered.

• Q3 was the first profitable quarter after COVID-19, with net profit attributable to equity holders of RMB 3.642 billion; Q4 returned to a deficit.

• Total transportation turnover increased 104.6% YoY and recovered to 90.5% of 2019; international routes and business travel continued to recover.

Financial highlights

• Revenue reached RMB 119.17 billion, up 145.6% YoY; EBITDA was RMB 22.83 billion, an increase of RMB 35.0 billion YoY.

• Net loss attributable to equity holders was RMB 8.168 billion, a YoY reduction in losses of RMB 29.188 billion.

• Q4 deficit was attributed mainly to weaker-than-expected business travel demand in the off-season and the recovery of international flights.

• Total operating costs were RMB 121.09 billion, 2.52% above 2019; excluding fuel, and excluding fuel plus depreciation and amortization, unit costs improved significantly YoY.

Outlook and guidance

• 2024 priorities include safeguarding operational safety, improving business efficiency, strengthening service brands, advancing digital transformation, and preventing and resolving major risks.

• Fleet plan for 2024: 56 aircraft to be introduced and 15 retired; 2025 plan: 47 introduced and 36 retired. Plans may change with market conditions and capacity planning.

• Prospects include recovering public and business travel demand, international flight resumption, visa-free travel expansion, and hub development; the outlook remains subject to changing assumptions and actual results may differ.