China Southern Airlines Company (1055) H1 2026 earnings summary

Executive summary

• Operating revenue for H1 2026 rose 9.72% year-over-year to RMB94,679 million, driven by growth in both passenger and cargo segments.

• Net loss attributable to equity shareholders widened to RMB3,699 million from RMB1,534 million in H1 2025.

• Passenger traffic volume was 83.17 million, with international routes showing strong growth.

• Cargo and mail revenue surged 18.65% year-over-year, reflecting robust demand.

Financial highlights

• Operating expenses increased 17.01% year-over-year to RMB99,327 million, mainly due to higher fuel costs.

• Net cash generated from operating activities decreased 10.48% to RMB10,450 million.

• Total assets reached RMB363,925 million, up 3.96% from year-end 2025.

• Debt ratio rose to 85.85% from 84.22% at year-end 2025.

• No interim dividend was declared for H1 2026.

Outlook and guidance

• The company plans to enhance safety management, operational effectiveness, brand management, and digital transformation in H2 2026.

• Strategic focus includes expanding international routes, optimizing fleet structure, digital transformation, and cost control.

• Proceeds from a proposed A Share Issuance (up to RMB15 billion) will be used for fleet expansion and working capital.