2025 ANNUAL RESULTS
Summary by AI BETAClose X
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.
中國國際航空股份有限公司
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China with limited liability)
(Stock Code: 00753)
2025 ANNUAL RESULTS
|
FINANCIAL HIGHLIGHTS
• During the Reporting Period, the Group recorded a revenue of RMB171,485 million. The net loss attributable to equity shareholders of the Company was RMB1,788 million.
• As considered and approved by the 14th meeting of the seventh session of the Board of the Company, the Company proposed not to make profit distribution for the year of 2025. |
2025 ANNUAL RESULTS
The Board hereby announces the audited consolidated financial results of the Group for the year ended 31 December 2025, which have been prepared in accordance with IFRS Accounting Standards, together with the corresponding comparative figures for the year ended 31 December 2024 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
|
2025 |
2024 |
||||||
|
|
NOTE |
RMB'000 |
RMB'000 |
||||||
|
|
|
|
|
||||||
|
Revenue |
3 |
171,484,646 |
166,698,880 |
||||||
|
Other income and gains |
5 |
5,269,298 |
7,319,912 |
||||||
|
|
|
|
|
||||||
|
|
|
176,753,944 |
174,018,792 |
||||||
|
|
|
|
|
||||||
|
Operating expenses |
|
|
|
||||||
|
Jet fuel costs |
|
(50,041,444) |
(53,720,436) |
||||||
|
Employee compensation costs |
|
(37,047,474) |
(34,268,745) |
||||||
|
Depreciation and amortisation |
|
(30,717,739) |
(29,102,968) |
||||||
|
Take-off, landing and depot charges |
|
(21,967,914) |
(20,915,459) |
||||||
|
Aircraft maintenance, repair and overhaul costs |
|
(14,813,651) |
(12,848,288) |
||||||
|
Air catering charges |
|
(4,505,386) |
(4,165,874) |
||||||
|
Aircraft and engine lease expense |
|
(764,843) |
(358,885) |
||||||
|
Other lease expenses |
|
(724,421) |
(598,621) |
||||||
|
Other flight operation expenses |
|
(9,158,771) |
(9,119,619) |
||||||
|
Selling and marketing expenses |
|
(4,918,115) |
(4,695,760) |
||||||
|
General and administrative expenses |
|
(1,922,452) |
(1,872,201) |
||||||
|
Impairment loss recognised on non-current assets |
|
(96,292) |
(143,240) |
||||||
|
Net impairment loss reversed under expected credit loss model |
|
18,911 |
9,507 |
||||||
|
Impairment loss recognised on goodwill |
|
(483,552) |
- |
||||||
|
|
|
|
|
||||||
|
|
|
(177,143,143) |
(171,800,589) |
||||||
|
|
|
|
|
||||||
|
(Loss)/Profit from operations |
6 |
(389,199) |
2,218,203 |
||||||
|
Finance income |
|
568,911 |
521,356 |
||||||
|
Finance costs |
7 |
(5,553,051) |
(6,398,748) |
||||||
|
Share of results of associates |
|
3,135,745 |
2,610,723 |
||||||
|
Share of results of joint ventures |
|
289,927 |
209,121 |
||||||
|
Exchange differences |
|
327,561 |
(759,523) |
||||||
|
|
|
|
|
||||||
|
Loss before taxation |
|
(1,620,106) |
(1,598,868) |
||||||
|
Income tax expense |
8 |
(1,922,270) |
(846,474) |
||||||
|
|
|
|
|
||||||
|
Loss for the year |
|
(3,542,376) |
(2,445,342) |
||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
Attributable to: |
|
|
|
||||||
|
- Equity shareholders of the Company |
|
(1,787,943) |
(232,557) |
||||||
|
- Non-controlling interests |
|
(1,754,433) |
(2,212,785) |
||||||
|
|
|
|
|
||||||
|
|
|
(3,542,376) |
(2,445,342) |
||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
Loss per share |
|
|
|
||||||
|
- Basic and diluted (RMB)
|
9 |
RMB(0.11) |
RMB(0.01) |
||||||
|
|
|
|
|
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Loss for the year |
(3,542,376) |
(2,445,342) |
||||||
|
|
|
|
||||||
|
Other comprehensive income for the year |
|
|
||||||
|
Items that will not be reclassified to profit or loss: |
|
|
||||||
|
- Change in fair value of investments in equity instruments at fair value through other comprehensive income |
(50,780) |
(79,126) |
||||||
|
- Remeasurement of net defined benefit liability |
954 |
(15,130) |
||||||
|
- Share of other comprehensive income of an associate |
34,324 |
(31,632) |
||||||
|
- Related tax |
12,695 |
19,782 |
||||||
|
|
|
|
||||||
|
Items that are or may be reclassified subsequently to profit or loss: |
|
|
||||||
|
- Change in fair value of investments in debt instruments at fair value through other comprehensive income |
(18,160) |
27,772 |
||||||
|
- Impairment loss reversed on investments in debt instruments at fair value through other comprehensive income |
1,114 |
394 |
||||||
|
- Share of other comprehensive income of associates and joint ventures |
(250,132) |
(28,272) |
||||||
|
- Exchange differences on translation of foreign operations |
(567,236) |
434,021 |
||||||
|
- Related tax |
4,261 |
(7,042) |
||||||
|
|
|
|
||||||
|
Other comprehensive income for the year (net of tax) |
(832,960) |
320,767 |
||||||
|
|
|
|
||||||
|
Total comprehensive income for the year |
(4,375,336) |
(2,124,575) |
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Attributable to: |
|
|
||||||
|
- Equity shareholders of the Company |
(2,576,314) |
114,293 |
||||||
|
- Non-controlling interests |
(1,799,022) |
(2,238,868) |
||||||
|
|
|
|
||||||
|
|
(4,375,336) |
(2,124,575) |
||||||
|
|
|
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2025
|
|
|
31 December |
31 December |
||||||
|
|
|
2025 |
2024 |
||||||
|
|
NOTE |
RMB'000 |
RMB'000 |
||||||
|
|
|
|
|
||||||
|
Non-current assets |
|
|
|
||||||
|
Property, plant and equipment |
|
127,360,692 |
122,180,871 |
||||||
|
Right-of-use assets |
|
121,670,850 |
118,832,142 |
||||||
|
Investment properties |
|
659,519 |
693,059 |
||||||
|
Intangible assets |
|
105,612 |
106,563 |
||||||
|
Goodwill |
|
3,612,180 |
4,095,732 |
||||||
|
Interests in associates |
|
15,787,587 |
14,632,923 |
||||||
|
Interests in joint ventures |
|
2,644,892 |
2,423,853 |
||||||
|
Advance payments for aircraft and flight equipment |
|
20,185,779 |
24,689,737 |
||||||
|
Deposits for aircraft under leases |
|
488,745 |
526,004 |
||||||
|
Equity instruments at fair value through other comprehensive income |
|
1,924,573 |
1,791,273 |
||||||
|
Debt instruments at fair value through other comprehensive income |
|
1,093,435 |
1,426,851 |
||||||
|
Deferred tax assets |
|
11,367,646 |
12,959,766 |
||||||
|
Other non-current assets |
|
1,305,636 |
704,196 |
||||||
|
|
|
|
|
||||||
|
|
|
308,207,146 |
305,062,970 |
||||||
|
|
|
|
|
||||||
|
Current assets |
|
|
|
||||||
|
Inventories |
|
4,809,698 |
4,224,992 |
||||||
|
Accounts receivable |
11 |
3,480,157 |
3,670,252 |
||||||
|
Bills receivable |
|
12,516 |
7,785 |
||||||
|
Prepayments, deposits and other receivables |
|
4,866,352 |
5,223,257 |
||||||
|
Financial assets at fair value through profit or loss |
|
151,633 |
37,559 |
||||||
|
Time deposits and restricted deposits |
|
1,564,056 |
1,428,429 |
||||||
|
Cash and cash equivalents |
|
14,295,268 |
21,039,472 |
||||||
|
Assets held for sale |
|
- |
94,829 |
||||||
|
Other current assets |
|
5,623,629 |
4,960,628 |
||||||
|
|
|
|
|
||||||
|
|
|
34,803,309 |
40,687,203 |
||||||
|
|
|
|
|
||||||
|
Total assets |
|
343,010,455 |
345,750,173 |
||||||
|
|
|
|
|
||||||
|
|
|
31 December |
31 December |
||||||
|
|
|
2025 |
2024 |
||||||
|
|
NOTES |
RMB'000 |
RMB'000 |
||||||
|
|
|
|
|
||||||
|
Current liabilities |
|
|
|
||||||
|
Air traffic liabilities |
|
(11,221,885) |
(11,098,740) |
||||||
|
Accounts payable |
12 |
(18,716,316) |
(18,869,784) |
||||||
|
Bills payable |
|
(1,500,000) |
- |
||||||
|
Contract liabilities |
|
(1,720,744) |
(1,171,172) |
||||||
|
Dividends payable |
|
(103,367) |
(98,000) |
||||||
|
Other payables and accruals |
|
(16,671,365) |
(13,437,502) |
||||||
|
Advance |
|
(73,656) |
(36,270) |
||||||
|
Current taxation |
|
(109,089) |
(130,653) |
||||||
|
Lease liabilities |
|
(17,548,753) |
(17,464,654) |
||||||
|
Interest-bearing borrowings |
|
(47,210,707) |
(74,544,705) |
||||||
|
Provision for return condition checks |
|
(2,416,213) |
(758,575) |
||||||
|
|
|
|
|
||||||
|
|
|
(117,292,095) |
(137,610,055) |
||||||
|
|
|
|
|
||||||
|
Net current liabilities |
|
(82,488,786) |
(96,922,852) |
||||||
|
|
|
|
|
||||||
|
Total assets less current liabilities |
|
225,718,360 |
208,140,118 |
||||||
|
|
|
|
|
||||||
|
Non-current liabilities |
|
|
|
||||||
|
Lease liabilities |
|
(61,452,171) |
(59,134,187) |
||||||
|
Interest-bearing borrowings |
|
(100,607,906) |
(84,836,960) |
||||||
|
Provision for return condition checks |
|
(20,149,949) |
(19,228,054) |
||||||
|
Provision for early retirement benefit obligations |
|
(262) |
(359) |
||||||
|
Contract liabilities |
|
(2,873,684) |
(2,565,188) |
||||||
|
Defined benefit obligations |
|
(168,765) |
(186,700) |
||||||
|
Deferred income |
|
(401,549) |
(406,943) |
||||||
|
Deferred tax liabilities |
|
(137,992) |
(128,016) |
||||||
|
Other non-current liabilities |
|
(731,358) |
(727,741) |
||||||
|
|
|
|
|
||||||
|
|
|
(186,523,636) |
(167,214,148) |
||||||
|
|
|
|
|
||||||
|
NET ASSETS |
|
39,194,724 |
40,925,970 |
||||||
|
|
|
|
|
||||||
|
|
|
|
|
||||||
|
CAPITAL AND RESERVES |
|
|
|
||||||
|
Issued capital |
|
17,448,421 |
17,448,421 |
||||||
|
Reserves |
|
25,066,365 |
27,679,751 |
||||||
|
|
|
|
|
||||||
|
Total equity attributable to equity shareholders of the Company |
|
42,514,786 |
45,128,172 |
||||||
|
Non-controlling interests |
|
(3,320,062) |
(4,202,202) |
||||||
|
|
|
|
|
||||||
|
TOTAL EQUITY |
|
39,194,724 |
40,925,970 |
||||||
|
|
|
|
|
NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
1. BASIS OF PREPARATION
As at 31 December 2025, the Group's current liabilities exceeded its current assets by approximately RMB82,489 million. Considering the Group's expected operating cash flows and the Company's unutilised bank facilities as at 31 December 2025, the Directors believe that the Group has sufficient financial resources to finance its operation and to meet its financial obligations as and when they fall due within the next twelve months from the end of the reporting period. Accordingly, the consolidated financial statements have been prepared on a going concern basis.
The Group's financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board ("IASB") and the disclosure requirements of the Hong Kong Companies Ordinance. These financial statements also comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.
The IASB has issued certain new or amended IFRS Accounting Standards that are first effective or available for early adoption for the current accounting period of the Group. Note 2 provides information on any changes in accounting policies resulting from initial application of these developments to the extent that they are relevant to the Group for the current accounting period reflected in these financial statements.
2. CHANGES IN ACCOUNTING POLICIES
The Group has applied amendments to IAS 21, The effects of changes in foreign exchange rates - Lack of exchangeability issued by the IASB to these financial statements for the current accounting period. The amendments do not have a material impact on these financial statements as the Group has not entered into any foreign currency transactions in which the foreign currency is not exchangeable into another currency.
3. REVENUE
Disaggregation of revenue
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Revenue from contracts with customers |
|
|
||||||
|
Airline operations |
|
|
||||||
|
Passenger |
154,855,779 |
151,788,672 |
||||||
|
Cargo and mail |
7,778,380 |
7,413,855 |
||||||
|
Others |
2,290,763 |
1,876,406 |
||||||
|
|
|
|
||||||
|
|
164,924,922 |
161,078,933 |
||||||
|
|
|
|
||||||
|
Other operations |
|
|
||||||
|
Aircraft engineering income |
6,012,036 |
5,179,776 |
||||||
|
Others |
152,360 |
132,016 |
||||||
|
|
|
|
||||||
|
|
6,164,396 |
5,311,792 |
||||||
|
|
|
|
||||||
|
Sub-total |
171,089,318 |
166,390,725 |
||||||
|
|
|
|
||||||
|
Rental income (included in revenue of airline operations segment) |
395,328 |
308,155 |
||||||
|
|
|
|
||||||
|
Total revenue |
171,484,646 |
166,698,880 |
||||||
|
|
|
|
Performance obligations for contracts with customers
Passenger revenue is recognised when transportation services are provided. Besides, the Group recognises the expected breakage amount as passenger revenue in proportion to the pattern of rights exercised by the passenger (or flown revenue) based on historical experience. Ticket sales for transportation not yet provided are recorded in air traffic liabilities.
The Group operates frequent-flyer programme and provides free services or products to the customers according to the miles they earn. The Group allocates the transaction price to each performance obligation on a relative stand-alone selling price basis. The amount allocated to the miles earned by the frequent-flyer programme members is recorded in contract liabilities and deferred until the miles are redeemed when the Group fulfils its obligations to supply services or products or when the miles expire. During the year, the Group recognised revenue of RMB1,166 million (2024: RMB1,351 million) which was included in contract liabilities in relation to frequent-flyer programme at the beginning of the year.
Cargo and mail revenue is recognised when contract services are provided.
Revenue from other airline-related services is recognised when the related performance obligations are satisfied.
Sale of goods is recognised when control of the goods has transferred to the customer, being at the point the goods are delivered to the customer.
Transaction price allocated to the remaining performance obligation for contracts with customers
The customer loyalty points in frequent-flyer programme have a three-year term and these points can be redeemed anytime at customers' discretion during the valid period.
4. SEGMENT INFORMATION
The Group's businesses are structured and managed, according to the nature of its operations and the services it provides. The Group has the following reportable operating segments:
(a) the "airline operations" segment which mainly comprises the provision of air passenger and air cargo services; and
(b) the "other operations" segment which comprises the provision of aircraft engineering and other airline-related services.
Inter-segment sales and transfers are transacted with reference to the then prevailing market prices.
The Company's chief operating decision maker monitors the results, assets and liabilities of the Group based on the financial results prepared in accordance with the Accounting Standards for Business Enterprises issued by the Ministry of Finance of the PRC ("CASs"). As such, the segment information is presented in accordance with CAS with reconciliation to financial information presented in IFRS Accounting Standards.
Year ended 31 December 2025
|
|
Airline operations |
Other operations |
Elimination |
Total |
|||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
|||||||||
|
|
|
|
|
|
|||||||||
|
Revenue |
|
|
|
|
|||||||||
|
Sales to external customers |
165,320,250 |
6,164,396 |
- |
171,484,646 |
|||||||||
|
Inter-segment sales |
273,944 |
9,582,483 |
(9,856,427) |
- |
|||||||||
|
|
|
|
|
|
|||||||||
|
Segment revenue under CASs and IFRS Accounting Standards |
165,594,194 |
15,746,879 |
(9,856,427) |
171,484,646 |
|||||||||
|
|
|
|
|
|
|||||||||
|
Segment results before taxation (Loss)/profit before taxation for reportable segments under CASs |
(2,484,013) |
926,783 |
(39,477) |
(1,596,707) |
|||||||||
|
|
|
|
|
|
|||||||||
|
|
|
|
|
||||||||||
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
(23,399) |
|||||||||
|
|
|
|
|
|
|||||||||
|
Loss before taxation for the year under IFRS Accounting Standards
|
|
|
|
(1,620,106) |
|||||||||
|
|
|
|
|
|
|||||||||
Year ended 31 December 2024
|
|
Airline operations |
Other operations |
Elimination |
Total |
||||||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Revenue |
|
|
|
|
||||||||||||
|
Sales to external customers |
161,387,088 |
5,311,792 |
- |
166,698,880 |
||||||||||||
|
Inter-segment sales |
229,651 |
9,268,619 |
(9,498,270) |
- |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Segment revenue under CASs and IFRS Accounting Standards |
161,616,739 |
14,580,411 |
(9,498,270) |
166,698,880 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Segment results before taxation (Loss)/profit before taxation for reportable segments under CASs |
(2,239,127) |
795,124 |
(161,195) |
(1,605,198) |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
6,330 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Loss before taxation for the year under IFRS Accounting Standards |
|
|
|
(1,598,868) |
||||||||||||
|
|
|
|
|
|
As at 31 December 2025 and 2024
|
|
Airline operations |
Other operations |
Elimination |
Total |
||||||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Segment assets |
|
|
|
|
||||||||||||
|
Segment assets as at 31 December 2025 under CASs |
331,428,979 |
34,473,118 |
(22,854,853) |
343,047,244 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
(36,789) |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Total assets as at 31 December 2025 under IFRS Accounting Standards |
|
|
|
343,010,455 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Segment assets as at 31 December 2024 under CASs |
335,387,462 |
35,068,041 |
(24,686,091) |
345,769,412 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Effect of differences between IFRS Accounting Standards and CASs |
|
|
|
(19,239) |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Total assets as at 31 December 2024 under IFRS Accounting Standards
|
|
|
|
345,750,173 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
|
Airline operations |
Other operations |
Elimination |
Total |
||||||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||||||||||
|
|
|
|
|
|
||||||||||||
|
Segment liabilities |
|
|
|
|
||||||||||||
|
Segment liabilities under CASs and IFRS Accounting Standards |
|
|
|
|
||||||||||||
|
As at 31 December 2025 |
300,925,989 |
25,209,071 |
(22,319,329) |
303,815,731 |
||||||||||||
|
As at 31 December 2024 |
301,829,477 |
27,135,795 |
(24,141,069) |
304,824,203 |
||||||||||||
|
|
|
|
|
|
Year ended 31 December 2025
|
|
Airline operations |
Other operations |
Elimination |
Total |
Effect of differences between IFRS Accounting Standards and CASs |
Amounts under IFRS Accounting Standards |
||||||||||||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Other segment information |
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Share of profit of associates and joint ventures |
3,038,666 |
387,006 |
- |
3,425,672 |
- |
3,425,672 |
||||||||||||||||||
|
Net impairment losses (recognised)/ reversed on financial assets |
2,458 |
(38,972) |
55,425 |
18,911 |
- |
18,911 |
||||||||||||||||||
|
Net impairment losses (recognised)/ reversed on non-financial assets |
(591,487) |
5,407 |
- |
(586,080) |
- |
(586,080) |
||||||||||||||||||
|
Depreciation and amortisation |
(30,455,837) |
(437,594) |
170,703 |
(30,722,728) |
4,989 |
(30,717,739) |
||||||||||||||||||
|
Income tax expense |
(1,702,387) |
(227,097) |
1,365 |
(1,928,119) |
5,849 |
(1,922,270) |
||||||||||||||||||
|
Interests in associates and joint ventures |
15,393,010 |
2,995,984 |
(96,434) |
18,292,560 |
139,919 |
18,432,479 |
||||||||||||||||||
|
Additions to non-current assets |
38,170,770 |
1,002,365 |
(216,742) |
38,956,393 |
- |
38,956,393 |
||||||||||||||||||
|
|
|
|
|
|
|
|
Year ended 31 December 2024
|
|
Airline operations |
Other operations |
Elimination |
Total |
Effect of Differences between IFRS Accounting Standards and CASs |
Amounts under IFRS Accounting Standards |
||||||||||||||||||
|
|
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
RMB'000 |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Other segment information |
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Share of profit of associates and joint ventures |
2,535,142 |
284,702 |
- |
2,819,844 |
- |
2,819,844 |
||||||||||||||||||
|
Net impairment losses (recognised)/ reversed on financial assets |
11,792 |
(27,985) |
25,700 |
9,507 |
- |
9,507 |
||||||||||||||||||
|
Impairment losses recognised on non-financial assets |
(145,588) |
(10,412) |
- |
(156,000) |
- |
(156,000) |
||||||||||||||||||
|
Depreciation and amortisation |
(28,827,562) |
(448,312) |
166,617 |
(29,109,257) |
6,289 |
(29,102,968) |
||||||||||||||||||
|
Income tax expense |
(656,490) |
(211,035) |
22,633 |
(844,892) |
(1,582) |
(846,474) |
||||||||||||||||||
|
Interests in associates and joint ventures |
14,310,136 |
2,693,530 |
(86,809) |
16,916,857 |
139,919 |
17,056,776 |
||||||||||||||||||
|
Additions to non-current assets |
34,264,696 |
401,343 |
(442,547) |
34,223,492 |
- |
34,223,492 |
||||||||||||||||||
|
|
|
|
|
|
|
|
Geographical information
The following table presents the Group's consolidated revenue to external customers by geographical location for the years ended 31 December 2025 and 2024, respectively:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Chinese Mainland |
117,457,528 |
118,491,369 |
||||||
|
Hong Kong SAR, Macau SAR and Taiwan, China |
5,373,638 |
5,118,889 |
||||||
|
International |
48,653,480 |
43,088,622 |
||||||
|
|
|
|
||||||
|
|
171,484,646 |
166,698,880 |
||||||
|
|
|
|
In determining the Group's geographical information, revenue is based on the origin and destination of each flight. Assets, which principally consist of aircraft and ground equipment, supporting the Group's worldwide transportation network, are mainly registered/located in Chinese Mainland. According to the business demand, the Group flexibly allocates aircraft to match the need of the route network. An analysis of the assets of the Group by geographical distribution has therefore not been presented.
There was no individual customer that contributed 10% or more of the Group's revenue during the year ended 31 December 2025 (2024: Nil).
5. OTHER INCOME AND GAINS
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Co-operation routes income and subsidy income |
4,518,005 |
4,295,552 |
||||||
|
Dividend income |
16,578 |
36,740 |
||||||
|
Gains/(losses) on disposal of: |
|
|
||||||
|
- Property, plant and equipment and right-of-use assets |
131,431 |
1,029,912 |
||||||
|
- Asset held for sale |
4,325 |
(17,527) |
||||||
|
Change in fair value of financial assets at FVTPL |
2,413 |
54 |
||||||
|
Others |
596,546 |
1,975,181 |
||||||
|
|
|
|
||||||
|
|
5,269,298 |
7,319,912 |
||||||
|
|
|
|
6. (LOSS)/PROFIT FROM OPERATIONS
The Group's (loss)/profit from operations is arrived at after charging:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Depreciation of property, plant and equipment |
14,910,278 |
13,439,898 |
||||||
|
Depreciation of right-of-use assets |
15,773,927 |
15,629,518 |
||||||
|
Depreciation of investment properties |
33,531 |
33,535 |
||||||
|
Amortisation of intangible assets |
3 |
17 |
||||||
|
|
|
|
||||||
|
Total depreciation and amortisation |
30,717,739 |
29,102,968 |
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Impairment losses recognised on property, plant and equipment |
96,292 |
143,240 |
||||||
|
Impairment losses recognised on goodwill |
483,552 |
- |
||||||
|
Inventories provision |
6,236 |
12,760 |
||||||
|
Auditors' remuneration: |
|
|
||||||
|
- Audit related services |
18,333 |
21,847 |
||||||
|
- Other services |
75 |
1,540 |
||||||
|
|
|
|
7. FINANCE COSTS
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Interest on interest-bearing borrowings |
3,711,041 |
4,025,619 |
||||||
|
Interest on lease liabilities |
2,144,357 |
2,683,519 |
||||||
|
Imputed interest expenses on defined benefit obligations |
3,241 |
5,147 |
||||||
|
|
|
|
||||||
|
|
5,858,639 |
6,714,285 |
||||||
|
Less: Interest capitalised (Note) |
(305,588) |
(315,537) |
||||||
|
|
|
|
||||||
|
|
5,553,051 |
6,398,748 |
||||||
|
|
|
|
Note: The interest capitalisation rates ranged from 1.95% to 2.80% per annum (2024: 2.40% to 4.00% per annum) relating to the costs of related borrowings during the year.
8. INCOME TAX EXPENSE
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Current income tax |
|
|
||||||
|
- Provision for the year |
293,042 |
247,162 |
||||||
|
- Under provision in respect of prior years |
1,496 |
879 |
||||||
|
Deferred tax |
1,627,732 |
598,433 |
||||||
|
|
|
|
||||||
|
|
1,922,270 |
846,474 |
||||||
|
|
|
|
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and Implementation Regulation of the EIT Law, except for certain branches and subsidiaries of the Group which are taxed at a preferential rate of 15% (2024: 15%), all group companies located in Chinese Mainland are subject to an income tax rate of 25% during the year (2024: 25%). Subsidiaries in Hong Kong SAR, China and Macau SAR are taxed at profits tax rate of 16.5% (2024: 16.5%) and 12% (2024: 12%), respectively.
The taxation for the year can be reconciled to the loss before taxation per consolidated statement of profit or loss as follows:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Loss before taxation |
(1,620,106) |
(1,598,868) |
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Tax at the applicable tax rate of 25% |
(405,026) |
(399,717) |
||||||
|
Preferential tax rates on income of group entities |
76,543 |
111,747 |
||||||
|
Tax effect of share of results of associates and joint ventures |
(856,418) |
(713,367) |
||||||
|
Tax effect of non-deductible expenses |
277,265 |
190,830 |
||||||
|
Tax effect of non-taxable income |
(18,696) |
(16,259) |
||||||
|
Tax effect of deductible temporary differences and tax losses not recognised |
2,847,106 |
1,948,635 |
||||||
|
Under provision in respect of prior years |
1,496 |
879 |
||||||
|
Others |
- |
(276,274) |
||||||
|
|
|
|
||||||
|
Income tax expense |
1,922,270 |
846,474 |
||||||
|
|
|
|
9. LOSS PER SHARE
The calculation of the basic and diluted loss per share attributable to equity shareholders of the Company is based on the following data:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Loss |
|
|
||||||
|
|
|
|
||||||
|
Loss for the purpose of basic and diluted loss per share |
(1,787,943) |
(232,557) |
||||||
|
|
|
|
|
|
2025 |
2024 |
||||||
|
|
'000 |
'000 |
||||||
|
|
|
|
||||||
|
Number of shares |
|
|
||||||
|
|
|
|
||||||
|
Issued ordinary shares at 1 January |
17,448,421 |
16,200,793 |
||||||
|
Effect of reciprocal shareholding |
(779,089) |
(789,854) |
||||||
|
Effect of share issued in 2024 |
- |
453,621 |
||||||
|
Weighted-average number of ordinary shares for the purpose of basic and diluted loss per share |
16,669,332 |
15,864,560 |
||||||
|
|
|
|
The number of ordinary shares for the purpose of basic and diluted loss per share is calculated based on the number of ordinary shares in issue during the year, as adjusted to reflect the reciprocal shareholding with Cathay Pacific.
As at 31 December 2025, the potential ordinary shares (convertible bonds) of the Group's associate, Cathay Pacific, assuming their conversion into ordinary shares, would reduce the loss per share and have an anti-dilutive effect. As potential ordinary shares that are anti-dilutive are excluded from the calculation of diluted loss per share, the basic and diluted loss per share of the Company are the same in both years.
10. DIVIDENDS
No dividend was paid or proposed for ordinary shareholders of the Company during the years ended 31 December 2024 and 2025, nor has any dividend been proposed since the end of both reporting periods.
11. ACCOUNTS RECEIVABLE
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Accounts receivable |
3,646,894 |
3,834,983 |
||||||
|
Less: Allowance for expected credit losses |
(166,737) |
(164,731) |
||||||
|
|
|
|
||||||
|
|
3,480,157 |
3,670,252 |
||||||
|
|
|
|
The ageing analysis of the accounts receivable as at the end of the reporting period, based on the transaction date, net of allowance for expected credit losses, was as follows:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Within 30 days |
2,877,838 |
2,963,962 |
||||||
|
31 to 60 days |
101,849 |
147,934 |
||||||
|
61 to 90 days |
245,924 |
139,120 |
||||||
|
Over 90 days |
254,546 |
419,236 |
||||||
|
|
|
|
||||||
|
|
3,480,157 |
3,670,252 |
||||||
|
|
|
|
12. ACCOUNTS PAYABLE
The ageing analysis of the accounts payable, based on the transaction date, as at the end of the reporting period was as follows:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Within 30 days |
7,839,031 |
8,354,764 |
||||||
|
31 to 60 days |
1,968,175 |
2,009,755 |
||||||
|
61 to 90 days |
4,171,265 |
4,806,725 |
||||||
|
Over 90 days |
4,737,845 |
3,698,540 |
||||||
|
|
|
|
||||||
|
|
18,716,316 |
18,869,784 |
||||||
|
|
|
|
The accounts payable are non-interest-bearing and have normal credit terms up to 90 days.
CONSOLIDATED BALANCE SHEET
At 31 DECEMBER 2025
(Prepared under the CASs)
|
|
31 December |
31 December |
||||||
|
ASSETS |
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Current Assets |
|
|
||||||
|
Cash and bank |
15,859,324 |
22,467,901 |
||||||
|
Financial assets at fair value through profit or loss |
151,633 |
37,559 |
||||||
|
Bills receivable |
12,516 |
7,785 |
||||||
|
Accounts receivable |
3,480,157 |
3,670,252 |
||||||
|
Prepayments |
590,827 |
462,245 |
||||||
|
Other receivables |
4,275,525 |
4,761,012 |
||||||
|
Inventories |
4,809,698 |
4,224,992 |
||||||
|
Assets held for sale |
- |
94,829 |
||||||
|
Other current assets |
5,623,629 |
4,960,628 |
||||||
|
|
|
|
||||||
|
Total current assets |
34,803,309 |
40,687,203 |
||||||
|
|
|
|
||||||
|
Non-current assets |
|
|
||||||
|
Debt instruments at fair value through other comprehensive income |
1,093,435 |
1,426,851 |
||||||
|
Long-term receivables |
735,200 |
910,872 |
||||||
|
Long-term equity investments |
18,292,560 |
16,916,857 |
||||||
|
Equity instruments at fair value through other comprehensive income |
1,926,616 |
1,793,316 |
||||||
|
Investment properties |
291,001 |
305,917 |
||||||
|
Fixed assets |
112,844,370 |
109,655,401 |
||||||
|
Right-of-use assets |
116,551,531 |
114,042,465 |
||||||
|
Construction in progress |
34,331,014 |
36,767,279 |
||||||
|
Intangible assets |
6,194,476 |
5,937,851 |
||||||
|
Goodwill |
3,614,390 |
4,097,942 |
||||||
|
Long-term deferred expenses |
325,628 |
314,274 |
||||||
|
Deferred tax assets |
11,310,161 |
12,908,130 |
||||||
|
Other non-current assets |
733,553 |
5,054 |
||||||
|
|
|
|
||||||
|
Total Non-current assets |
308,243,935 |
305,082,209 |
||||||
|
|
|
|
||||||
|
Total assets |
343,047,244 |
345,769,412 |
||||||
|
|
|
|
|
|
31 December |
31 December |
||||||
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Current liabilities |
|
|
||||||
|
Short-term loans |
6,560,932 |
16,876,294 |
||||||
|
Short-term bonds payable |
11,051,420 |
3,010,847 |
||||||
|
Bills payable |
1,500,000 |
- |
||||||
|
Accounts payable |
20,856,695 |
19,538,712 |
||||||
|
Air traffic liabilities |
11,221,885 |
11,098,740 |
||||||
|
Advance |
73,656 |
36,270 |
||||||
|
Contract liabilities |
1,720,744 |
1,171,172 |
||||||
|
Employee compensations payable |
4,178,271 |
3,441,130 |
||||||
|
Taxes payable |
683,576 |
655,407 |
||||||
|
Other payables |
13,420,424 |
11,075,198 |
||||||
|
Non-current liabilities repayable within one year |
46,024,492 |
70,706,285 |
||||||
|
|
|
|
||||||
|
Total Current Liabilities |
117,292,095 |
137,610,055 |
||||||
|
|
|
|
||||||
|
Non-current liabilities |
|
|
||||||
|
Long-term loans |
60,858,057 |
77,836,960 |
||||||
|
Corporate bonds |
32,000,000 |
6,000,000 |
||||||
|
Long-term payables |
24,293,835 |
16,785,219 |
||||||
|
Lease liabilities |
61,452,171 |
59,134,187 |
||||||
|
Defined benefit obligations |
168,765 |
186,700 |
||||||
|
Accrued liabilities |
4,337,583 |
4,170,935 |
||||||
|
Deferred income |
401,549 |
406,943 |
||||||
|
Deferred tax liabilities |
137,992 |
128,016 |
||||||
|
Other non-current liabilities |
2,873,684 |
2,565,188 |
||||||
|
|
|
|
||||||
|
Total non-current liabilities |
186,523,636 |
167,214,148 |
||||||
|
|
|
|
||||||
|
Total liabilities |
303,815,731 |
304,824,203 |
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
Shareholders' equity |
|
|
||||||
|
Issued capital |
17,448,421 |
17,448,421 |
||||||
|
Capital reserve |
46,113,911 |
46,150,983 |
||||||
|
Other comprehensive income |
(265,919) |
550,334 |
||||||
|
Reserve funds |
11,564,287 |
11,564,287 |
||||||
|
Accumulated losses |
(32,486,631) |
(30,744,120) |
||||||
|
General reserve |
177,506 |
177,506 |
||||||
|
|
|
|
||||||
|
Equity attributable to shareholders of the Company |
42,551,575 |
45,147,411 |
||||||
|
Non-controlling interests |
(3,320,062) |
(4,202,202) |
||||||
|
|
|
|
||||||
|
Total shareholders' equity |
39,231,513 |
40,945,209 |
||||||
|
|
|
|
||||||
|
Total liabilities and shareholders' equity |
343,047,244 |
345,769,412 |
||||||
|
|
|
|
EFFECTS OF DIFFERENCES BETWEEN IFRS ACCOUNTING STANDARDS AND CASs
The effects of differences between the consolidated financial statements of the Group prepared under IFRS Accounting Standards and CASs are as follows:
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Net loss attributable to shareholders of the Company under CASs |
(1,770,393) |
(237,305) |
||||||
|
Deferred taxation |
5,849 |
(1,582) |
||||||
|
Differences in value of fixed assets and certain non-current assets |
(23,399) |
10,628 |
||||||
|
|
|
|
||||||
|
Net loss attributable to shareholders of the Company under IFRS Accounting Standards |
(1,787,943) |
(232,557) |
||||||
|
|
|
|
|
|
31 December |
31 December |
||||||
|
|
2025 |
2024 |
||||||
|
|
RMB'000 |
RMB'000 |
||||||
|
|
|
|
||||||
|
Equity attributable to shareholders of the Company under CASs |
42,551,575 |
45,147,411 |
||||||
|
Deferred taxation |
57,485 |
51,636 |
||||||
|
Differences in value of fixed assets and certain non-current assets |
(234,193) |
(210,794) |
||||||
|
Unrealised profit on share transactions with an associate |
139,919 |
139,919 |
||||||
|
|
|
|
||||||
|
Equity attributable to shareholders of the Company under IFRS Accounting Standards |
42,514,786 |
45,128,172 |
||||||
|
|
|
|
SUMMARY OF OPERATING DATA
The following is the operating data summary of the Company, Shenzhen Airlines (including Kunming Airlines), Shandong Airlines, Air Macau, Beijing Airlines, Dalian Airlines and Air China Inner Mongolia.
|
|
Current year |
Previous year |
Increase/ (decrease) |
|
|
|
|
|
|
Capacity |
|
|
|
|
ASK (million) |
367,641.22 |
356,103.62 |
3.24% |
|
International |
107,065.14 |
95,626.32 |
11.96% |
|
Chinese Mainland |
250,315.08 |
250,051.04 |
0.11% |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
10,261.00 |
10,426.25 |
(1.58%) |
|
|
|
|
|
|
AFTK (million) |
12,934.82 |
12,629.76 |
2.42% |
|
International |
6,275.77 |
5,593.32 |
12.20% |
|
Chinese Mainland |
6,415.24 |
6,764.65 |
(5.17%) |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
243.81 |
271.79 |
(10.29%) |
|
|
|
|
|
|
ATK (million) |
46,060.88 |
44,726.10 |
2.98% |
|
|
|
|
|
|
Traffic |
|
|
|
|
RPK (million) |
301,015.56 |
284,349.95 |
5.86% |
|
International |
83,742.89 |
72,918.97 |
14.84% |
|
Chinese Mainland |
209,605.32 |
203,880.63 |
2.81% |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
7,667.35 |
7,550.35 |
1.55% |
|
|
|
|
|
|
RFTK (million) |
5,051.12 |
4,732.69 |
6.73% |
|
International |
3,302.01 |
3,001.96 |
10.00% |
|
Chinese Mainland |
1,684.85 |
1,663.75 |
1.27% |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
64.26 |
66.98 |
(4.06%) |
|
|
|
|
|
|
Passengers carried (thousand) |
160,596.53 |
155,315.51 |
3.40% |
|
International |
18,817.99 |
16,317.71 |
15.31% |
|
Chinese Mainland |
136,880.24 |
134,256.06 |
1.95% |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
4,898.30 |
4,741.74 |
3.30% |
|
|
|
|
|
|
Cargo and mail carried (tonnes) |
1,537,855.39 |
1,480,085.34 |
3.90% |
|
|
|
|
|
|
Kilometres flown (million) |
1,909.34 |
1,856.98 |
2.82% |
|
|
|
|
|
|
Block hours (thousand) |
3,013.26 |
2,950.89 |
2.11% |
|
|
|
|
|
|
|
Current year |
Previous year |
Increase/ (decrease) |
|
|
|
|
|
|
Number of flights |
1,037,949 |
1,024,492 |
1.31% |
|
International |
116,299 |
102,399 |
13.57% |
|
Chinese Mainland |
885,006 |
886,944 |
(0.22%) |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
36,644 |
35,149 |
4.25% |
|
|
|
|
|
|
RTK (million) |
31,568.50 |
29,743.08 |
6.14% |
|
|
|
|
|
|
Load factor |
|
|
|
|
Passenger load factor (RPK/ASK) |
81.88% |
79.85% |
2.03 ppt |
|
International |
78.22% |
76.25% |
1.96 ppt |
|
Chinese Mainland |
83.74% |
81.54% |
2.20 ppt |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
74.72% |
72.42% |
2.31 ppt |
|
|
|
|
|
|
Cargo and mail load factor (RFTK/AFTK) |
39.05% |
37.47% |
1.58 ppt |
|
International |
52.62% |
53.67% |
(1.06 ppt) |
|
Chinese Mainland |
26.26% |
24.59% |
1.67 ppt |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
26.36% |
24.64% |
1.71 ppt |
|
|
|
|
|
|
Overall load factor (RTK/ATK) |
68.54% |
66.50% |
2.04 ppt |
|
|
|
|
|
|
Utilisation |
|
|
|
|
Daily utilisation of aircraft (block hours per day per aircraft) |
8.89 |
8.90 |
(0.02 hours) |
|
|
|
|
|
|
Yield |
|
|
|
|
Yield per RPK (RMB) |
0.5144 |
0.5338 |
(3.63%) |
|
International |
0.5095 |
0.5127 |
(0.62%) |
|
Chinese Mainland |
0.5107 |
0.5371 |
(4.92%) |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
0.6718 |
0.6488 |
3.54% |
|
|
|
|
|
|
Yield per RFTK (RMB) |
1.5399 |
1.5665 |
(1.70%) |
|
International |
1.8124 |
1.8999 |
(4.60%) |
|
Chinese Mainland |
0.9324 |
0.8959 |
4.08% |
|
Hong Kong SAR, Macau SAR and Taiwan, China |
3.4680 |
3.2855 |
5.56% |
|
|
|
|
|
|
Unit cost |
|
|
|
|
Operating expenses per ASK (RMB) |
0.4818 |
0.4824 |
(0.12%) |
|
Operating expenses per ATK (RMB) |
3.8458 |
3.8412 |
0.12% |
DEVELOPMENT OF FLEET
During the year of 2025, the Group introduced a total of 45 aircraft, including 25 A320 series aircraft, 12 B737 series aircraft, six C919 aircraft and two C909 aircraft, and phased out a total of 11 aircraft, including four A330 series aircraft, one B747 series aircraft, five A320 series aircraft and one business jet.
As at the end of the Reporting Period, the Group had a total of 964 aircraft with an average age of 10.36 years, of which the Company operated a fleet of 533 aircraft in total, with an average age of 9.85 years. The Company introduced 37 aircraft and phased out 8 aircraft.
Details of the fleet of the Group are set out in the table below:
|
|
31 December 2025 |
|||||||||||||||||||
|
|
Sub-total |
Self-owned |
Finance leases |
Operating leases |
Average age (year) |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Airbus |
449 |
195 |
136 |
118 |
10.07 |
|||||||||||||||
|
A320 |
369 |
165 |
112 |
92 |
10.18 |
|||||||||||||||
|
A330 |
50 |
20 |
4 |
26 |
12.50 |
|||||||||||||||
|
A350 |
30 |
10 |
20 |
- |
4.63 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Boeing |
468 |
193 |
101 |
174 |
11.40 |
|||||||||||||||
|
B737 |
417 |
157 |
94 |
166 |
11.39 |
|||||||||||||||
|
B747 |
9 |
7 |
2 |
- |
14.75 |
|||||||||||||||
|
B777 |
28 |
19 |
3 |
6 |
11.71 |
|||||||||||||||
|
B787 |
14 |
10 |
2 |
2 |
8.86 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
COMAC |
44 |
29 |
15 |
- |
2.25 |
|||||||||||||||
|
C909 |
35 |
23 |
12 |
- |
2.70 |
|||||||||||||||
|
C919 |
9 |
6 |
3 |
- |
0.53 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Business jets |
3 |
1 |
- |
2 |
9.81 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
964 |
418 |
252 |
294 |
10.36 |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
Introduction Plan |
Phase-out Plan |
||||||||||||||||||||||
|
|
2026 |
2027 |
2028 |
2026 |
2027 |
2028 |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Airbus |
18 |
30 |
20 |
15 |
7 |
8 |
||||||||||||||||||
|
A320 |
18 |
30 |
20 |
14 |
7 |
8 |
||||||||||||||||||
|
A330 |
- |
- |
- |
1 |
- |
- |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Boeing |
12 |
21 |
35 |
5 |
5 |
3 |
||||||||||||||||||
|
B737 |
10 |
12 |
31 |
5 |
5 |
3 |
||||||||||||||||||
|
B787 |
2 |
9 |
4 |
- |
- |
- |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
COMAC |
10 |
10 |
15 |
- |
- |
- |
||||||||||||||||||
|
C919 |
10 |
10 |
15 |
- |
- |
- |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Total |
40 |
61 |
70 |
20 |
12 |
11 |
||||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||||||
Note: Please refer to the actual operation for the introduction and phase-out of the Group's fleet in the future.
2025 REVIEW
The year 2025 marked the conclusion of the 14th Five-Year Plan and also served as a year of planning and laying the groundwork for the 15th Five-Year Plan. Throughout the year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Group thoroughly implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC) and the plenary sessions of the 20th CPC Central Committee, as well as the work deployments of the CPC Central Committee and the State Council. Steadfastly fulfilling the responsibilities and mission of a national flag carrier, the Group has taken a coordinated approach to its core tasks of ensuring operational safety, enhancing operating performance and passenger services, and strengthening Party building. Positive outcomes have been secured in all aspects, bringing the 14th Five-Year Plan to a successful conclusion.
Ensuring safety first for stable and secure operations. The Group has always prioritized safety as its primary political mission and top priority, taking concrete actions to ensure "Two Absolute Safeties (兩個絕對安全)". The Group advanced the three-year action plan for fundamental improvements, deepened the development of its safety operation system, and steadily improved the quality and efficiency of its safety management. By closely monitoring the complex operational environment and key links in production organization, the Group focused on strengthening its risk identification and control capabilities, with its risk prevention and control system continuously upgraded. Work safety responsibilities were enforced for all employees, a long-term mechanism for improving work practices was established, and the safety foundation was continuously strengthened. In 2025, the Group achieved 3.01 million safe flight hours, while successfully accomplishing critical missions such as the Shanghai Cooperation Organization Summit, the Asian Winter Games, the World Games and earthquake relief and rescue in Myanmar, staying committed to fulfilling its responsibilities as a central enterprise.
Seeking progress while maintaining stability, with operating quality continuing to improve. The Group further advanced initiatives to improve quality and enhance efficiency, and its principal business operations continued to improve. The Group steadfastly advanced its hub network strategy and made dedicated efforts to increase the scale of effective capacity deployment, achieving 367,600 million available seat kilometres for the year, representing a year-on-year increase of 3.24%. Actively responding to "involution-style" competition, the Group dynamically monitored market trends and balanced capacity and pricing in a scientific manner, thereby consistently consolidating its strengths in core markets and on main routes. The Group upgraded its value-added aviation products to continuously increase the value of such products, achieving a year-on-year increase of over 40% in sales revenue. The integration of passenger and cargo operations was further deepened, with capacity dynamically aligned with cargo transportation demand, resulting in a year-on-year increase of 4.92% in bellyhold operating revenue. The Group comprehensively upgraded its cost control system, focusing on key areas such as jet fuel, take-off and landing and aircraft, striving to enhance the precision of cost management.
Adhering to a people-oriented approach, with service quality and efficiency continuing to improve. With a focus on its goal of serving passengers with credibility, convenience, comfort and choice, the Group expanded the supply of high-quality aviation services to enhance passengers' sense of fulfillment and satisfaction. The Group promoted a comprehensive transformation towards a "customer-centric" service model, established a database of comprehensive evaluation indicators covering the entire passenger service process and continuously improved the service system. An "aviation+" ecosystem was developed, with vigorous promotion of through-check-in services and air-rail intermodal products, continuously expanding the value of aviation services. Flight regularity was enhanced and post-irregular flight handling services was optimized to improve the seamlessness of the entire service process. In 2025, the number of members of the "PhoenixMiles" frequent flyer programme exceeded 100 million with passenger satisfaction reaching 88.1 points.
Fulfilling the responsibilities of a central enterprise and serving the Nation's Priorities. The Group has been fulfilling its mission and responsibilities of serving national development, and stimulating endogenous momentum through comprehensively deepening reform. The Group fully supported high-standard opening-up with 12 international routes opened or resumed in 2025, expanding the coverage of the Group's route network to six continents. Actively contributing to the Belt and Road initiative, the Company is operating 74 routes covering 32 countries under the Belt and Road Initiative. The Group fully supported the development of China's domestically produced civil aircraft. A total of 35 C909 and nine C919 aircraft were introduced and commenced safe operation while engaging in the research and development of the C929 aircraft. The Group actively fulfilled its social responsibilities and integrated targeted assistance work into its entire industrial chain, receiving the highest grade of "Good" in the Evaluation of Targeted Poverty Alleviation Performance Among Centrally-administered State-owned Units for eight consecutive years. The Group actively expanded its international influence, participating deeply in the governance of international organizations such as Star Alliance and IATA, expanding in-depth cooperation with the international aviation industry and promoting the inclusion of Renminbi as a settlement currency in IATA clearing.
Strengthening Party building and leadership to enhance corporate governance effectiveness. The Group adheres to the principle of "Two Consistencies (兩個一以貫之)", continuously improving the integration of Party leadership into its corporate governance. The Group promoted the deep integration of Party building with production and operation, and hosted a series of themed publicity events titled "Air China C919 Retraces the Glorious Northward Flight of the 'Two Airlines Uprising'" (重飛'兩航起義'北飛光輝航程), effectively enhancing the power of ideological guidance. The Group strictly implemented the "First Agenda (第一議題)" system, consolidated and deepened the achievements of rectification following the central inspections, thoroughly implemented the spirit of the central Party leadership's eight-point decision on improving conduct, advanced the normalization and long-term effectiveness of work style development, and took coordinated steps to ensure that officials do not have the audacity, opportunity, or desire to become corrupt. The Group continuously fostered a clean and upright political ecosystem, safeguarding the building of a world-class enterprise.
The year 2026 marks the opening year of the 15th Five-Year Plan and a critical juncture for building on the past and paving the way for the future. The Group will thoroughly pursue initiatives to "improve quality, enhance efficiency and optimize structure", accelerating the transformation from a quantitative expansion model to a quality- and efficiency-oriented model, to achieve effective improvement in quality and reasonable growth in quantity, and effectively strengthen its core functions and core competitiveness. By upholding fundamental principles and breaking new ground, working diligently and delivering solid results, the Group will stride forward in its journey of building a world-class enterprise with courage and determination, making new and greater contributions to Chinese modernization.
BUSINESS OVERVIEW
Safe Operation
In 2025, the Group firmly upheld the base line of safe development and maintained stable and secure operations. The Group refined the four major systems of "safety management, flight training, aircraft maintenance, and production and operations" as well as the accountability system for work safety for all employees, leveraging technology to enhance its safe transportation capacity. The Group strengthened process control and risk prevention, ensured solid flight operation support during critical periods such as the thunderstorm season and winter operations, intensified hidden hazard identification, supervision and inspection, and paid close attention to the health of personnel in key positions. The Group made solid progress in the three-year action plan for fundamental improvements in operation safety, improved emergency response capabilities for lithium battery incidents in the fleet, and developed emergency measures to address contingencies such as overseas terrorist attacks and riots. The Group provided high-quality support for C919 aircraft operations, ensuring dynamic alignment between flight operations and support capabilities. The Group optimized resource allocation and improved safety efficiency to steadily implement the integrated operation of Air China Inner Mongolia.
During the Reporting Period, the Group recorded 3.01 million safe flight hours, and successfully completed the themed event of "Air China C919 Retraces the Glorious Northward Flight of the 'Two Airlines Uprising'" and fulfilled major transportation support missions of special charter flights, including the Shanghai Cooperation Organization Summit and evacuation and rescue missions for overseas Chinese, thereby consistently maintaining an overall stable and safe operational environment.
Enhancing Operating Performance
In 2025, the Group seized market opportunities and pursued the overarching goal of enhancing operating performance while ensuring safe operations. The Group improved fleet efficiency through meticulous production organization, stabilized yield quality by strengthening capacity and pricing management, and advanced cost reduction and expenditure control through rigorous cost controls. As a result, the Group's operational performance continued to improve, achieving a year-on-year increase in revenue by RMB 4.786 billion.
Focusing on the annual strategic production and operational targets, the Group optimized production organization to ensure effective capacity deployment. Guided by the principle of revenue maximization, the Group refined yield management while simultaneously enhancing marketing organization capabilities. The Group strengthened product innovation, expanded ancillary revenue streams and achieved significant results in enhancing overall operating performance. The Group improved aircraft utilization, actively exploring the international market and continuously refining the Group's capacity deployment structure. The Group deepened capacity synergy among Air China family carriers to strengthen competitiveness of its main routes. In response to market changes, the Group continuously enriched its premium cabin products, explored incremental passenger traffic from connecting flights, upgraded the yield management of Air China family carriers, and implemented refined management and control to balance capacity and pricing. The Group refined marketing products to actively generate revenue and increase profit. The Group deepened platform partnerships to proactively innovate products tailored to characteristics of its customer groups. The Group advanced the transformation of the "PhoenixMiles" frequent flyer program, continuously optimizing the benefits of frequent flyers. The Group comprehensively optimized mobile service systems to enhance sales and service capabilities of direct sales channels. The Group expanded ancillary revenue streams by optimizing flagship products, strengthening development of new products, and continuously promoting the synergistic development of ancillary businesses among Air China family carriers.
The Group strictly controlled costs in line with the requirements of "intensification, coordination and refinement". The Group optimised the matching of aircraft types with routes and market demand to manage operating costs, improved resource utilization efficiency and refined support cost management. The Group strengthened fund coordination, optimised the debt structure and reduced financial expenses. The Group increased labor productivity at all levels while appropriately managing labor cost, thereby effectively expanding profitability potential.
Products and Services
In 2025, focusing on passenger needs, the Group continuously improved its service standards and quality, cultivated high-quality service and product brands and accelerated service digitalization and upgrading, thereby providing passengers with a better aviation service experience and contributing to the high-quality development of civil aviation services.
The Group focused on addressing passengers' concerns by optimizing key service standards, particularly for services for passengers requiring special assistance and service compensation and reimbursement, thereby enhancing the overall passenger experience. To strengthen its service and product brand, the Group newly launched the "Zichen (紫宸)" premium lounge, with a series of "Smart Enjoyment (智享)" services introduced in the "Zixuan (紫軒)" and "Zichen (紫宸)" branded lounges. Brand awareness was further strengthened through themed activities during holidays such as the Mid-Autumn Festival and the National Day, as well as "Phoenix Pavilion (鳳庭薈)" cultural exhibitions. The integration and upgrade of express route products were completed, which now covered 13 routes. The "Air China Express Routes" service brand was selected among the second batch of creative achievements under the SASAC's Central Enterprise Brand Leadership Action. Cross-sector integration was strengthened, creating the in-flight customized coffee product "Coffee On-the-Go (隨行咖啡棒)", launching a new version of the safety instruction video, and producing and launching a new boarding/disembarkation music titled "Beyond the Horizon (遠方的遠方)". Through partnerships with well-known automobile companies, the Group achieved reciprocal cross-sector benefits. Collaboration was also undertaken with renowned cultural tourism, sports and art IPs to create themed products, catering to the diverse needs of passengers. Service system platforms, such as the end-to-end passenger service information notification system and the global ground flight support platform, were fully deployed. The in-flight catering reservation service was made available to passengers on all domestic routes with catering services. The iterative upgrading of basic service management systems such as the passenger service compensation system and the service knowledge database system continued. These initiatives continued to enhance the Group's digital service capabilities.
Digital Transformation and Technological Innovation
In 2025, the Group accelerated its digital transformation, which is value-oriented and customer-centric, thereby injecting strong and new digital and intelligent momentum into high-quality development. In terms of safe operation, the Group accelerated the global deployment of the ground operations support platform, achieving full coverage across all branches and 114 global staffed stations. Through the rollout of this advanced platform, the Group rapidly enhanced the overall standard of its ground support services. The smart flight-digital task sheet system was launched, creating an integrated digital application for flight crews. This "people-first, empowered by digitalization and intelligence" approach improved the operational efficiency and duty experience of frontline flight crews. The Group advanced the development of a digital aviation safety platform, strengthening safety risk prevention and control, and continuously reinforcing the dual foundation of safety and efficiency. In terms of marketing services, the Group continued to empower the transformation of marketing models and enhancement of service quality. The second phase of the business model innovation system established Air China's new retail system. The promotion of the passenger in-flight catering reservation management system was accelerated, enhancing passenger experience and promoting refined management for cost reduction. In terms of management and synergy, the Group intensified group-wide coordination and digital empowerment, pushing forward with development of platforms in respect of human resources, finance and internal control. This enabled refined management, cost reduction and efficiency enhancement, while meeting regulatory and compliance requirements.
In 2025, the Group drove development through innovation, promoting in-depth integration of technology with the industry. The Group deepened industry-academia-research-application collaboration, partnering with universities to develop a joint laboratory for intelligent aircraft operation, maintenance and support. Innovative achievements accumulated rapidly. The global ground flight support platform was awarded the First Prize for Science and Technology by the China Communications and Transportation Association; the passenger service unit project for A320 series aircraft received the "Technology Breakthrough Award" at the 8th China Aviation Maintenance Red Crown Awards. The Group fostered a culture of innovation and hosted an AI Innovation Application Competition that attracted 239 teams from 63 universities, research institutes and internal units nationwide.
Risk Prevention and Control
In 2025, the Group continued to deepen its integrated collaboration mechanism of "upholding the rule of law, reinforcing internal controls, preventing risks and promoting compliance". The Group accelerated the implementation of whole-process, full-chain and full-coverage risk prevention and control efforts, comprehensively strengthening risk management and control for safe operations and business risk prevention. The Board assumes overall responsibility for risk management. The Audit and Risk Management Committee (the Supervision Committee) is responsible for guiding, supervising and evaluating risk management-related work. The management is responsible for organizing, developing and implementing various requirements. The Company specifically adopted a prudent risk appetite. Centered on the principle of "zero tolerance for potential safety hazards, uninterrupted fund flows and reasonable risk exposure", the Company established the "three lines of defense" for risk management. All business departments, serving as the first line of defense, are responsible for effectively identifying and controlling risks, bearing primary responsibility for risks arising from their businesses and operational processes. Functions such as legal, compliance, finance, quality, safety and human resources act as the second line of defense, providing risk management and control policies, methodologies and tools, and organizing risk monitoring as well as internal control and compliance management. The internal audit function acts as the third line of defense, conducting independent evaluation of risk management and control outcomes, and bearing responsibilities for risk assessment and supervision.
According to the "Implementation Rules for Risk Assessment and Reporting", the Group refined its risk management framework and ensured effective execution of the Company's responsibilities for risk identification and control. The Group persistently strengthened the forward-looking research on various risks, including those related to the economic environment, market conditions, industrial policies and industry development trends. An annual forecast and assessment of major business risks was conducted. The Company identified key risk areas, achieving effective monitoring and closed-loop management of risks. According to the "Risk Grading Standards and Risk Incident Reporting Mechanism", the Group standardized the reporting of daily operational risks. During the Reporting Period, the Company further deepened risk management for significant matters by formulating the "Risk Management Measures for Significant Matters", strengthening risk control at source, process monitoring and outcome control, thereby enhancing the effectiveness of risk management for significant matters.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS
The following discussion and analysis are based on the Group's consolidated financial statements and the notes thereto prepared in accordance with the IFRS Accounting Standards and are designed to assist the readers in further understanding the information provided in this announcement so as to better understand the financial conditions and results of operations of the Group as a whole.
REVENUE
During the Reporting Period, the Group's revenue was RMB171,485 million, representing an increase of RMB4,786 million or 2.87% as compared with last year. Among these, air traffic revenue was RMB162,634 million, representing an increase of RMB3,431 million or 2.16% as compared with last year; other operating revenue was RMB8,851 million, representing a year-on-year increase of RMB1,355 million or 18.08%.
REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
|
|
2025 |
2024 |
|
|||||||||||||||||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Chinese Mainland |
117,457,528 |
68.50% |
118,491,369 |
71.08% |
(0.87%) |
|||||||||||||||
|
International |
48,653,480 |
28.37% |
43,088,622 |
25.85% |
12.91% |
|||||||||||||||
|
Hong Kong SAR, Macau SAR and Taiwan, China |
5,373,638 |
3.13% |
5,118,889 |
3.07% |
4.98% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
171,484,646 |
100.00% |
166,698,880 |
100.00% |
2.87% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
AIR PASSENGER REVENUE
During the Reporting Period, the Group recorded an air passenger revenue of RMB154,856 million, representing an increase of RMB3,067 million over the previous year. Among the air passenger revenue, the increase of capacity contributed an increase of RMB4,918 million in the revenue, and the increase of passenger load factor led to an increase of RMB3,978 million in the revenue, while the decrease of passenger yield resulted in a decrease in revenue of RMB5,829 million. The Group's capacity, passenger load factor and yield per RPK in 2025 are as follows:
|
|
2025 |
2024 |
Change |
|
|
|
|
|
|
ASK (million) |
367,641.22 |
356,103.62 |
3.24% |
|
Passenger load factor |
81.88% |
79.85% |
2.03 ppt |
|
Yield per RPK (RMB) |
0.5144 |
0.5338 |
(3.63%) |
AIR PASSENGER REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
|
|
2025 |
2024 |
|
|||||||||||||||||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Chinese Mainland |
107,036,024 |
69.12% |
109,504,532 |
72.14% |
(2.25%) |
|||||||||||||||
|
International |
42,668,978 |
27.55% |
37,385,320 |
24.63% |
14.13% |
|||||||||||||||
|
Hong Kong SAR, Macau SAR and Taiwan, China |
5,150,777 |
3.33% |
4,898,820 |
3.23% |
5.14% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
154,855,779 |
100.00% |
151,788,672 |
100.00% |
2.02% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
AIR CARGO AND MAIL REVENUE
During the Reporting Period, the Group's air cargo and mail revenue was RMB7,778 million, representing an increase of RMB364 million as compared with last year. Among them, the increase of capacity contributed an increase of RMB179 million in the revenue, while the increase of cargo and mail load factor resulted in an increase in revenue of RMB319 million, and the decrease of yield of cargo and mail resulted in a decrease of RMB134 million in the revenue. The capacity, cargo and mail load factor and yield per RFTK in 2025 are as follows:
|
|
2025 |
2024 |
Change |
|
|
|
|
|
|
Available freight tonne kilometres (million) |
12,934.82 |
12,629.76 |
2.42% |
|
Cargo and mail load factor |
39.05% |
37.47% |
1.58 ppt |
|
Yield per RFTK (RMB) |
1.5399 |
1.5665 |
(1.70%) |
AIR CARGO AND MAIL REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
|
|
2025 |
2024 |
|
|||||||||||||||||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Chinese Mainland |
1,571,017 |
20.20% |
1,490,484 |
20.10% |
5.40% |
|||||||||||||||
|
International |
5,984,503 |
76.94% |
5,703,302 |
76.93% |
4.93% |
|||||||||||||||
|
Hong Kong SAR, Macau SAR and Taiwan, China |
222,860 |
2.86% |
220,069 |
2.97% |
1.27% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
7,778,380 |
100.00% |
7,413,855 |
100.00% |
4.92% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
OPERATING EXPENSES
During the Reporting Period, the Group's operating expenses were RMB177,143 million, representing an increase of 3.11% from RMB171,801 million of last year. The breakdown of the operating expenses is set out below:
|
|
2025 |
2024 |
|
|||||||||||||||||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Jet fuel costs |
50,041,444 |
28.25% |
53,720,436 |
31.27% |
(6.85%) |
|||||||||||||||
|
Take-off, landing and depot charges |
21,967,914 |
12.40% |
20,915,459 |
12.18% |
5.03% |
|||||||||||||||
|
Depreciation and amortisation |
30,717,739 |
17.34% |
29,102,968 |
16.94% |
5.55% |
|||||||||||||||
|
Aircraft maintenance, repair and overhaul costs |
14,813,651 |
8.36% |
12,848,288 |
7.48% |
15.30% |
|||||||||||||||
|
Employee compensation costs |
37,047,474 |
20.91% |
34,268,745 |
19.95% |
8.11% |
|||||||||||||||
|
Air catering charges |
4,505,386 |
2.54% |
4,165,874 |
2.42% |
8.15% |
|||||||||||||||
|
Selling and marketing expenses |
4,918,115 |
2.78% |
4,695,760 |
2.73% |
4.74% |
|||||||||||||||
|
General and administrative expenses |
1,922,452 |
1.09% |
1,872,201 |
1.09% |
2.68% |
|||||||||||||||
|
Others |
11,208,968 |
6.33% |
10,210,858 |
5.94% |
9.77% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
177,143,143 |
100.00% |
171,800,589 |
100.00% |
3.11% |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
• Jet fuel costs decreased by RMB3,679 million on a year-on-year basis, mainly due to the combined effect of the decrease in the prices of jet fuel and increase in the consumption of jet fuel.
• Take-off, landing and depot charges increased by RMB1,052 million on a year-on-year basis, mainly due to the year-on-year increase in the number of take-offs and landings.
• Depreciation and amortisation expenses increased by RMB1,615 million on a year-on-year basis, mainly due to the expansion of fleet as well as the year-on-year increase in flying hours.
• Aircraft maintenance, repair and overhaul costs increased by RMB1,965 million on a year-on-year basis, mainly due to the year-on-year increase in flying hours and the increase in business volume of the subsidiaries engaged in repair business.
• Employee compensation costs increased by RMB2,779 million on a year-on-year basis, mainly due to the year-on-year increase in flight hour fees.
• Air catering charges increased by RMB340 million on a year-on-year basis, mainly due to the increase in the number of passengers.
• Selling and marketing expenses increased by RMB222 million on a year-on-year basis, mainly due to the increase in booking fees resulting from the increase in the number of passengers.
• Other operating expenses mainly included aircraft and engine operating lease expenses, civil aviation development fund and non-above-mentioned ordinary expenses arising from the core air traffic business, which increased by RMB998 million on a year-on-year basis, mainly due to the increase in the investment in production and operation.
FINANCE INCOME, FINANCE COSTS AND NET EXCHANGE LOSSES
During the Reporting Period, the Group recorded a finance income of RMB569 million, representing a year-on-year increase of RMB48 million or 9.12%; and incurred finance costs (excluding the capitalised portion) of RMB5,553 million, representing a year-on-year decrease of RMB846 million or 13.22%. During the Reporting Period, the Group recorded net exchange gains of RMB328 million contrasting with net exchange losses of RMB760 million for last year.
SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
During the Reporting Period, the net gain from the Group's share of results of its associates and joint ventures was RMB3,426 million, representing an increase of RMB606 million from the previous year. Among which, during the Reporting Period, the Group recognised a gain on investment of Cathay Pacific of RMB2,998 million, representing a year-on-year increase of RMB499 million.
MATERIAL ACQUISITIONS AND DISPOSALS
The Company did not make any material acquisitions and disposals of subsidiaries, associates or joint ventures during the Reporting Period.
ASSETS STRUCTURE ANALYSIS
As at the end of the Reporting Period, the total assets of the Group were RMB343,010 million, representing a decrease of 0.79% from that of 31 December 2024, among which current assets accounted for RMB34,803 million or 10.15% of the total assets, while non-current assets accounted for RMB308,207 million or 89.85% of the total assets.
Among the current assets, cash and cash equivalents were RMB14,295 million, accounting for 41.07% of the current assets and representing a decrease of 32.05% from that as at 31 December 2024, which was mainly due to flexible adjustment of funds according to the capital arrangements.
Among the non-current assets, the aggregated book value of property, plant and equipment and right-of-use assets as at the end of the Reporting Period amounted to RMB249,032 million, accounting for 80.80% of the non-current assets and representing an increase of 3.33% from that as at 31 December 2024.
ASSET MORTGAGE/PLEDGE
As of 31 December 2025, the Group, pursuant to certain bank loans and finance leasing agreements, had secured aircraft and buildings with an aggregated book value of approximately RMB4,539 million (RMB3,826 million as at 31 December 2024) and land use rights with book value of approximately RMB23 million (RMB23 million as at 31 December 2024). Meanwhile, the Group had monetary capital with restricted ownership of approximately RMB1,564 million (approximately RMB1,428 million as at 31 December 2024), which were mainly statutory reserves deposited in the People's Bank of China, pledged bank deposits, security deposits and time deposits with a maturity of more than three months.
CAPITAL EXPENDITURE
In 2025, the Group's capital expenditure totalled RMB23,754 million, of which the total investment in aircraft was RMB16,310 million, mainly including procurement of aircraft and engines, aircraft modifications, flight simulators, etc. The cash component for the long-term investments amounted to RMB4,830 million, including capital injection projects for Shenzhen Airlines, Air Macau, Air China Inner Mongolia and Sichuan Airlines. Other capital expenditure investment amounted to RMB2,614 million, mainly including infrastructure construction, IT system construction, ground equipment procurement, etc.
EQUITY INVESTMENT
As at the end of the Reporting Period, the Group's equity investment in its associates amounted to RMB15,788 million, representing an increase of 7.89% from that of 31 December 2024, mainly due to the effect of recognising the share of gains of associates and other comprehensive income during the year. Among this, the balance of the equity investment of the Group in Cathay Pacific amounted to RMB15,353 million.
As at the end of the Reporting Period, the Group's equity investment in its joint ventures was RMB2,645 million, representing an increase of 9.12% from that as at 31 December 2024, mainly due to new investments made and recognition of the share of investment gains of joint ventures during the Reporting Period.
DEBT STRUCTURE ANALYSIS
At the end of the Reporting Period, the Group's total liabilities were RMB303,816 million, representing a decrease of 0.33% from that as at 31 December 2024. Among them, current liabilities amounted to RMB117,292 million, accounting for 38.61% of the total liabilities; and non-current liabilities amounted to RMB186,524 million, accounting for 61.39% of the total liabilities.
Among the current liabilities, interest-bearing debts (including interest-bearing borrowings and lease liabilities) amounted to RMB66,260 million, representing a decrease of 27.99% from that as at 31 December 2024. Among the non-current liabilities, interest-bearing debts (including interest-bearing borrowings and lease liabilities) amounted to RMB162,060 million, representing an increase of 12.56% from that as at 31 December 2024.
Details of interest-bearing debts of the Group categorised by currency are set out below:
|
|
31 December 2025 |
31 December 2024 |
|
|||||||||||||||||
|
(in RMB'000) |
Amount |
Percentage |
Amount |
Percentage |
Change |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
RMB |
204,117,822 |
89.40% |
205,662,318 |
87.15% |
(0.75%) |
|||||||||||||||
|
US dollars |
23,835,123 |
10.44% |
29,874,295 |
12.66% |
(20.22%) |
|||||||||||||||
|
Others |
366,592 |
0.16% |
443,893 |
0.19% |
(17.41%) |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
|
Total |
228,319,537 |
100.00% |
235,980,506 |
100.00% |
(3.25%) |
|||||||||||||||
|
|
|
|
|
|
|
|||||||||||||||
CAPITAL COMMITMENTS
The Group's capital commitments, which mainly consisted of the expenditure in the next few years for purchasing certain number of aircraft and related equipment, increased by 14.44% from RMB95,175 million as at 31 December 2024 to RMB108,917 million as at 31 December 2025. The investment commitments mainly represented the investment agreements entered into, amounted to RMB237 million as at 31 December 2025, as compared to RMB313 million as at 31 December 2024. The Company plans to finance the above payments by internal and external resources.
GEARING RATIO
As at the end of the Reporting Period, the Group's gearing ratio (total liabilities divided by total assets) was 88.57%, representing an increase of 0.41 percentage points from that of 31 December 2024.
WORKING CAPITAL AND ITS SOURCES
At the end of the Reporting Period, the Group's net current liabilities (current liabilities minus current assets) were RMB82,489 million, representing a decrease of RMB14,434 million from that as at 31 December 2024. Based on the structure of current assets and current liabilities, the Group's current ratio (current assets divided by current liabilities) was 0.30, remaining unchanged as compared to that as at 31 December 2024.
The Group meets its working capital needs mainly through its operating activities and external financing activities. During the Reporting Period, the Group's net cash inflow from operating activities was RMB36,374 million, representing an increase of RMB8,390 million from that in 2024, mainly due to the impact of the year-on-year increase in sales revenue. Net cash outflow from investing activities was RMB15,082 million, representing a decrease of RMB2,781 million from that of 2024, mainly due to the year-on-year decrease in advance payments for aircraft and flight equipment. Net cash outflow arising from financing activities amounted to RMB27,980 million, representing an increase of RMB23,984 million from that of 2024, mainly due to the year-on-year increase in repayment of borrowings and bonds.
The Group has obtained bank facilities granted by several banks in China, which are sufficient to meet the demands on working capital and future capital commitments.
OPERATIONAL PLAN
The Company has identified the following key priorities for 2026: (1) to firmly secure the base line of safe development, ensuring high-quality development with a high level of safety; (2) to enhance its value creation capability and continue the campaign to enhance operating performance through quality and efficiency enhancement; (3) to continue advancing deepened reform and stimulate vitality and momentum through innovation-driven development; (4) to continuously optimize the service system, creating a leading brand with credibility, convenience, comfort and choice; and (5) to comprehensively strengthen the Party's leadership and lead high-quality development with high-quality Party building.
OUTLOOK FOR FUTURE
Company Development Strategy
The Group adheres to the development goal of "accelerating the development into a world-class aviation transportation group with global competitiveness". Upholding the four strategic directions of "hub network, balanced passenger-cargo development, cost leadership, and brand strategy", the Group will focus on key areas such as enhancing safety management, optimizing market layout, adjusting resource structure, upgrading products and services, driving digital innovation development, and promoting green and low-carbon development to advance its operations.
Safety management will reach a new level. With the refinement of the safety management system, flight training system, aircraft maintenance system, and operational management system, the safety control mechanism will be further improved, the efficiency of safety management continuously enhanced, and the implementation of responsibilities more clearly defined, maintaining a high-level safety operation.
Optimized market layout will create new advantages. By persistently serving national strategies and major decisions and deployments, and under the new development pattern of domestic and international dual circulation, the Group will optimize the layout of its base markets, highlight strengths and priorities, and consolidate new advantages for development. The core network structure of the "four-corner rhombus and four-pole clusters" will be further refined, and network synergy within the Air China family carriers will be continuously deepened.
Resource structure adjustment will present a new outlook. The alignment of core resources with market characteristics will be enhanced, establishing long-term advantages in fleet development. The efficiency of flight crew and human resources allocation will be optimized, and the alignment of maintenance and investment layouts with the development layout of the principal business will be continuously strengthened.
Product and service upgrades will achieve a new level. Product and service quality will see significant improvement, with service features becoming more distinctive. An efficient and well-connected standards system will be established, enabling smoother full-process service support and more efficient service synergy across all business segments.
Digital innovation and development will enter a new stage. A sound technological innovation management system and mechanism will be in place, with the core role of innovation in the Group's development gradually strengthening. The effectiveness of innovation-driven development will become more prominent, digital transformation will achieve new breakthroughs, and the development of digital platform will make key progress.
Green and low-carbon development will demonstrate new accomplishments. The energy conservation and environmental protection management system will operate more efficiently. Pollution and carbon reduction measures will be more effective, pollution prevention achievements more substantial, carbon emissions and carbon asset management more professionalized, and participation in social welfare activities more extensive.
POTENTIAL RISKS
1. Risks of External Environment
Market Fluctuation
As China's economy maintained steady growth and residents' income increased steadily, the likelihood of fluctuations in the domestic market was relatively low. With the accelerated changes in the international landscape, external risks, challenges and uncertainties increased significantly, and certain international markets were exposed to some degree of volatility risk. Based on the characteristics of the new development stage, the Group will fully, precisely and comprehensively implement the new development philosophy, coordinate development and safety, and take the initiative to contribute to and integrate with the new development paradigm. Seizing the development opportunities in the industry, the Group will further develop its domestic route network and actively expand into emerging international markets, in a bid to proactively adapt to the rapidly changing market environment.
Oil Price Fluctuation
Jet fuel is one of the main operating costs of the Group. The performance of the Group is affected to a certain extent by fluctuations in jet fuel prices. During the Reporting Period, with other variables remaining unchanged, if the average price of the jet fuel rises or falls by 5%, the Group's jet fuel costs will rise or fall by approximately RMB2.502 billion. The collection of fuel surcharges has relieved the Company's jet fuel cost pressure to a certain extent.
Exchange Rate Fluctuation
Certain assets and liabilities of the Group are denominated in US dollar. Certain international income and expenses of the Group are also denominated in currencies other than RMB. Assuming that the risk variables other than the exchange rate stay unchanged, the appreciation or depreciation of RMB against US dollar by 1% due to the changes in the exchange rate will result in the increase or decrease in the Group's net profit and shareholders' equity as at 31 December 2025 by RMB140 million.
2. Risks of Competition
Industry competition
During the Reporting Period, the Company still faced considerable competitive pressure within the industry. In respect of the domestic market, as there was no significant reduction in the number of market participants, against the backdrop of intensified competition from high-speed railway and changes in passenger structure, homogeneous competition still existed. In respect of the international market, the new routes of domestic airlines were mainly concentrated in destinations such as Central Asia, Western Asia and Europe, resulting in intensified competition in certain regions within a short period of time. Adhering to its hub network strategy, the Company will spare no efforts in building international aviation hubs in Beijing and Chengdu, realising differentiated development from other market competitors. Main routes and express routes will be launched centering on hubs as well as principal bases and markets with a view to strengthening core market competitiveness with high-quality products, services and travel experiences.
Alternative competition
With the increasing density of China's high-speed railway network, passengers on existing short-and medium-haul routes have gradually shifted to high-speed rail, which posed challenges to the civil aviation industry. At the same time, the extensive transport network of high-speed rail has also provided civil aviation with more punctual and efficient feeder traffic for medium- and long-haul routes, while more and more passengers chose the air-rail intermodal transport. Looking forward, leveraging the enhanced cooperation and competition between civil aviation and high-speed railway with complementary advantages, the integrated development of the air-rail intermodal transport will accelerate the construction of a modern comprehensive transportation system.
SHARE CAPITAL STRUCTURE
As at the end of the Reporting Period, the Company had a total share capital of RMB17,448,421,000, divided into 17,448,421,000 shares with par value of RMB1.00 each. The following table sets out the share capital structure of the Company as at the end of the Reporting Period:
|
Type of shares |
Number of shares |
Percentage of the total share capital |
||||||
|
|
|
|
||||||
|
A Shares |
12,492,810,328 |
71.60% |
||||||
|
H Shares |
4,955,610,672 |
28.40% |
||||||
|
|
|
|
||||||
|
Total |
17,448,421,000 |
100.00% |
||||||
|
|
|
|
PURCHASES, SALES OR REDEMPTION OF LISTED SECURITIES
During the Reporting Period, neither the Company nor any of its subsidiaries purchased, sold or redeemed any listed securities of the Company (including the sales of treasury shares (as defined in the Listing Rules)) (the term "securities" has the meaning ascribed to it under Paragraph 1 of Appendix D2 to the Listing Rules).
CORPORATE GOVERNANCE
Compliance with the Corporate Governance Code
The Company has always been committed to maintaining and enhancing the level of its corporate governance so as to ensure greater accountability and transparency of the Group and deliver long-term return to its shareholders. The Company has complied with the code provisions in Part 2 of the Corporate Governance Code in Appendix C1 to the Listing Rules throughout the Reporting Period.
Compliance with the Model Code
The Company has adopted and formulated a code of conduct on terms no less stringent than the required standards of the Model Code. After making specific enquiries, the Company confirmed that each Director has complied with the required standards of the Model Code and the Company's code of conduct throughout the Reporting Period; and each Supervisor has complied with the required standards of the Model Code and the Company's code of conduct from the beginning of the Reporting Period until 24 June 2025, the date on which the Supervisory Committee was abolished by the Company.
DIVIDENDS
According to the audited financial statements of the Company prepared in accordance with the CASs and the IFRS Accounting Standards, the Company recorded negative profits available for distribution to shareholders in 2025. As considered and approved by the 14th meeting of the seventh session of the Board of the Company, the Company proposed not to make profit distribution for the year of 2025.
ANNUAL SHAREHOLDERS' MEETING ("AGM") AND CLOSURE OF REGISTER OF MEMBERS
The Company proposed to hold the AGM on Thursday, 28 May 2026. The register of members of H Shares will be closed from Friday, 22 May 2026 to Thursday, 28 May 2026 (both days inclusive), during which period no transfer of shares will be effected. In order to qualify for attendance and voting at the AGM, the holders of H Shares must return all the transfer documents to the Company's H Shares registrar in Hong Kong, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wan Chai, Hong Kong by 4:30 p.m. on Thursday, 21 May 2026. The holders of H Shares whose names appear on the register of members of the Company at the close of business on Thursday, 21 May 2026 are entitled to attend and vote at the AGM.
ANNUAL REPORT
The annual report for the year ended 31 December 2025 containing all information required by Appendix D2 to the Listing Rules will be published on the HKEXnews website of the Hong Kong Stock Exchange (www.hkexnews.hk) as well as the website of the Company (www.airchina.com.cn) in due course.
FORWARD-LOOKING STATEMENT
The Company would like to remind readers of this announcement that the operations of the air transport industry are largely influenced by global political and economic developments. Unexpected and unforeseeable events may have a material impact on the Company's business or the industry as a whole. The Company's 2025 annual results announcement contains, inter alia, certain forward-looking statements, such as those regarding the global and Chinese economies and aviation markets. These forward-looking statements are subject to certain uncertainties and risks.
THE AUDIT AND RISK MANAGEMENT COMMITTEE (THE SUPERVISION COMMITTEE)
The 2025 annual results of the Company have been reviewed by the Audit and Risk Management Committee (the Supervision Committee) of the Board.
GLOSSARY OF TECHNICAL TERMS
Capacity Measurements
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"available tonne kilometres" or "ATK(s)" |
the number of tonnes of capacity available for transportation multiplied by the kilometres flown |
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"available seat kilometres" or "ASK(s)" |
the number of seats available for sale multiplied by the kilometres flown |
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"available freight tonne kilometres" or "AFTK(s)" |
the number of tonnes of capacity available for the carriage of cargo and mail multiplied by the kilometres flown |
Traffic Measurements
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"passenger traffic" |
measured in RPK, unless otherwise specified |
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"revenue passenger kilometres" or "RPK(s)" |
the number of revenue passengers carried multiplied by the kilometres flown |
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"cargo and mail traffic" |
measured in RFTK, unless otherwise specified |
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"revenue freight tonne kilometres" or "RFTK(s)" |
the revenue cargo and mail load in tonnes multiplied by the kilometres flown |
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"revenue tonne kilometres" or "RTK(s)" |
the revenue load (passenger and cargo) in tonnes multiplied by the kilometres flown |
Load Factors
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"overall load factor" |
RTK expressed as a percentage of ATK |
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"passenger load factor" |
RPK expressed as a percentage of ASK |
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"cargo and mail load factor" |
RFTK expressed as a percentage of AFTK |
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"Block hours" |
the total time from the removal of wheel chocks before the aircraft begins to move until the placement of wheel chocks after the aircraft has landed and come to a complete stop |
Yield Measurements
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"passenger yield"/"yield per RPK" |
revenues from passenger operations divided by RPKs |
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"cargo yield"/"yield per RFTK" |
revenues from cargo operations divided by RFTKs |
DEFINITIONS
In this announcement, unless the context otherwise requires, the following terms shall have the following meanings:
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"Airbus" |
Airbus S.A.S., a company established in Toulouse, France |
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"Air China Cargo" |
Air China Cargo Co., Ltd., a non-wholly owned subsidiary of CNAHC |
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"Air China Inner Mongolia" |
Air China Inner Mongolia Co., Ltd., a non-wholly owned subsidiary of the Company |
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"Air Macau" |
Air Macau Company Limited, a non-wholly owned subsidiary of the Company |
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"Ameco" |
Aircraft Maintenance and Engineering Corporation, a non-wholly owned subsidiary of the Company |
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"Articles of Association" |
the articles of association of the Company, as amended from time to time |
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"A Share(s)" |
ordinary share(s) in the share capital of the Company, with a nominal value of RMB1.00 each, which are subscribed for and traded in Renminbi and listed on Shanghai Stock Exchange |
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"Beijing Airlines" |
Beijing Airlines Company Limited, a non-wholly owned subsidiary of the Company |
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"Board" |
the board of directors of the Company |
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"Boeing" |
The Boeing Company |
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"CAAC" |
Civil Aviation Administration of China |
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"CASs" |
China Accounting Standards for Business Enterprises |
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"Cathay Pacific" |
Cathay Pacific Airways Limited, an associate of the Company |
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"CNACG" |
China National Aviation Corporation (Group) Limited, a wholly-owned subsidiary of CNAHC |
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"CNAHC" |
China National Aviation Holding Corporation Limited |
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"COMAC" |
Commercial Aircraft Corporation of China, Ltd. |
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"Company", "We", or "Air China" |
Air China Limited, a company incorporated in the PRC, whose H Shares are listed on the Hong Kong Stock Exchange as its primary listing venue and on the Official List of the UK Listing Authority as its secondary listing venue, and whose A Shares are listed on the Shanghai Stock Exchange |
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"CSRC" |
China Securities Regulatory Commission |
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"Dalian Airlines" |
Dalian Airlines Company Limited, a non-wholly owned subsidiary of the Company |
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"Director(s)" |
the director(s) of the Company |
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"Group" |
the Company and its subsidiaries |
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"Hong Kong" |
the Hong Kong Special Administrative Region of the People's Republic of China |
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"Hong Kong Stock Exchange" |
The Stock Exchange of Hong Kong Limited |
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"H Share(s)" |
ordinary share(s) in the share capital of the Company, with a nominal value of RMB1.00 each, which are listed on the Hong Kong Stock Exchange as primary listing venue and have been admitted into the Official List of the UK Listing Authority as secondary listing venue |
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"IFRS Accounting Standards" |
IFRS Accounting Standards as issued by the International Accounting Standards Board |
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"Kunming Airlines" |
Kunming Airlines Company Limited, a subsidiary of Shenzhen Airlines |
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"Listing Rules" |
The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited |
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"Model Code" |
the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules |
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"Reporting Period" |
the period from 1 January 2025 to 31 December 2025 |
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"RMB" |
Renminbi, the lawful currency of the PRC |
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"SASAC" |
State-owned Assets Supervision and Administration Commission of the State Council |
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"SFO" |
The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) |
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"Shandong Airlines" |
Shandong Airlines Co., Ltd., a non-wholly owned subsidiary of the Company |
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"Shenzhen Airlines" |
Shenzhen Airlines Company Limited, a non-wholly owned subsidiary of the Company |
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"Supervisor(s)" |
the supervisor(s) of the Company, and the Company has abolished the supervisory committee on 24 June 2025 |
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"US dollars" |
United States dollars, the lawful currency of the United States |
By Order of the Board Air China Limited
Xiao Feng
Company Secretary
Beijing, the PRC, 26 March 2026
As at the date of this announcement, the directors of the Company are Mr. Liu Tiexiang, Mr. Qu Guangji, Mr. Cui Xiaofeng, Mr. Patrick Healy, Mr. Xiao Peng, Mr. Xu Niansha*, Mr. He Yun*, Ms. Winnie Tam Wan-chi* and Mr. Gao Chunlei*.
* Independent non-executive director of the Company
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