China Southern Airlines Company (1055) H2 2024 earnings summary

Executive summary

• Net loss attributable to equity shareholders narrowed to RMB1,769 million in 2024 from RMB4,140 million in 2023, reflecting improved operational performance despite ongoing challenges.

• Total operating revenue rose 8.94% year-over-year to RMB174,224 million, driven by strong recovery in passenger and cargo demand.

• Passenger load factor increased by 6.28 percentage points to 84.38%, while yield per RPK declined by 12.73% to RMB0.48.

• The company maintained its leading safety record, achieving 3.148 million safe flight hours and multiple industry awards.

Financial highlights

• Operating profit increased to RMB8,327 million in 2024 from RMB5,557 million in 2023.

• Operating expenses rose 8.02% to RMB171,806 million, with flight operation expenses up 8.13% due to higher jet fuel costs and increased flight volume.

• Cash and cash equivalents at year-end were RMB12,984 million, up from RMB9,531 million.

• Net cash inflow from operating activities was RMB25,764 million; net cash outflow from investing and financing activities totaled RMB22,317 million.

• Debt ratio remained stable at 83.99%.

Outlook and guidance

• The company expects continued global economic uncertainty in 2025 but anticipates stable growth in China, with a focus on safety, operational efficiency, and digital transformation.

• Plans include enhancing market operation capability, improving service quality, expanding strategic initiatives, and deepening reforms.