Air China Reports Improved Metrics Despite Operating Loss

Air China Limited shows a narrower net loss and rising revenues in fiscal 2024, reflecting improved operational performance. However, a decline in profit from operations raises cautious notes among investors.

Date: 24-04-2025

AI Rating: 7

Net Income and Earnings Per Share (EPS): Air China reported a narrowed net loss attributable to equity shareholders, amounting to RMB 232.56 million, a significant improvement from the previous year's loss of RMB 1.04 billion. The EPS also improved, moving from a loss of RMB 0.07 to a loss of RMB 0.01, representing a positive trend towards profitability.

Revenue Growth: The company achieved a revenue increase from RMB 141.10 billion to RMB 166.70 billion year-over-year, which is a 17.93% growth, reflecting strong demand and operational recovery.

Profit Margins: Although EBITDAR rose from RMB 30.84 billion to RMB 32.28 billion, indicating improved operational efficiency, profit from operations declined from RMB 2.89 billion to RMB 2.22 billion, suggesting pressures on operating margins that need addressing.

Capacity and Passenger Growth: Air China's passenger traffic and capacity metrics displayed substantial advancements, with a 23.80% increase in the number of passengers carried and a 21.74% rise in capacity measured in available seat kilometers (ASK). This suggests that the demand for air travel is robust, aligning with industry-wide recovery trends.

Investors should note the mixed signals here: while revenue growth and reductions in net loss are positive indicators, the decline in profit from operations and the pressures evident on profit margins call for a careful analysis of future profitability and operational efficiency. Overall, Air China appears to be on a recovery path, yet it faces challenges that could impact stock performance in the near term.

Stocks: AIRC.L AIRYY.PK