China Southern Airlines Company (1055) H1 2025 earnings summary

Executive summary

• Operating revenue for H1 2025 rose 1.77% year-over-year to RMB86,291 million, with traffic revenue up 2.06% and passenger revenue up 1.82% due to increased passenger numbers.

• Net loss attributable to equity shareholders widened to RMB1,534 million from RMB1,054 million in H1 2024, with basic and diluted loss per share at RMB0.08.

• Cash generated from operating activities decreased 9.45% to RMB11,674 million.

• The company maintained industry-leading safety, achieving 1.599 million hours of safe flight and was awarded "Best Airline of the Year" for the eighth consecutive year.

Financial highlights

• Operating expenses increased 0.90% to RMB84,884 million, with depreciation and amortisation up 7.16% due to fleet expansion.

• Total assets reached RMB336,775 million, up 2.06% from year-end 2024, and total liabilities increased 2.75% to RMB284,770 million.

• Debt ratio increased to 84.56%, and current ratio declined to 26.51%.

• Cash and cash equivalents at period end were RMB12,692 million, down 2.25% from year-end 2024.

• Net exchange loss narrowed to RMB116 million from RMB456 million year-over-year.

Outlook and guidance

• The company will focus on safety, operational efficiency, digital transformation, cost control, and high-quality development in H2 2025.

• Plans include expanding logistics, enhancing hub competitiveness, promoting large-scale operation of domestically produced aircraft, and advancing digital and AI-driven initiatives.

• Management expects continued global economic uncertainty but aims to leverage strengths to counter external risks.