China Southern Airlines Company (1055) H1 2025 earnings summary

Executive summary

• Operating revenue for 1H 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 shareholders was RMB -1,534 million, a 45.54% improvement year-over-year, though some sources note it widened from RMB1,054 million in H1 2024.

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

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

Financial highlights

• Operating expenses totaled RMB84,884 million, up 0.90% year-over-year; depreciation and amortisation increased 7.16% due to fleet expansion.

• EBITDA was RMB18,319 million, an increase of RMB1,117 million year-over-year.

• Passenger yield declined 6.12% to RMB0.46; cargo yield fell 2.09% and yield per RTK dropped 5.59% to RMB4.39.

• Total assets reached RMB336,775 million, up 2.06% from year-end 2024; debt ratio increased to 84.56%.

• Basic and diluted loss per share was RMB0.08.

Outlook and guidance

• Focus on safety, operational efficiency, digital transformation, and cost control in H2 2025.

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

• Management expects continued global economic uncertainty but aims to leverage high-quality development to counter external risks.