Air China released its unaudited interim results for the six months ended 30 June 2026, showing a 10.54% year-on-year revenue increase to RMB 89.27 billion. The gain was offset by a sharp rise in operating expenses, leading to a net loss attributable to shareholders of RMB 2.29 billion, wider than the RMB 1.80 billion loss a year earlier. Basic and diluted loss per share deepened to RMB 0.13 (H1 2025: RMB 0.11).
Revenue drivers • Passenger revenue rose 9.75% to RMB 80.33 billion, supported by a 6.82% jump in revenue passenger kilometres (RPK) and a 4.02-percentage-point increase in passenger load factor to 84.74%. • Passenger yield improved 2.74% to RMB 0.5247 per kilometre. • Cargo and mail revenue advanced 21.46% to RMB 4.35 billion, with yield per revenue freight tonne kilometre up 17.06% to RMB 1.7387. • International routes contributed 29.22% of total revenue, advancing 18.87% year-on-year to RMB 26.08 billion; Mainland China remained the largest market at 67.50% of revenue.
Cost pressures and profitability • Operating expenses climbed 12.38% to RMB 95.60 billion, outpacing revenue growth. Jet fuel costs surged 34.69% to RMB 32.77 billion, representing 34.27% of total costs. • Depreciation and amortisation increased 6.53% to RMB 15.81 billion, reflecting fleet expansion. • Operating loss widened to RMB 3.07 billion (H1 2025: RMB 1.70 billion). • Finance costs eased 16.68% to RMB 2.41 billion, while net exchange gains rose to RMB 0.65 billion (H1 2025: RMB 0.18 billion). • Contributions from associates and joint ventures totalled RMB 1.53 billion, up 15.5%, including RMB 1.20 billion from Cathay Pacific.
Balance-sheet and cash flow • Total assets increased 2.68% since December 2025 to RMB 352.21 billion; equity rose to RMB 56.78 billion. • Gearing ratio moderated to 83.88% (end-2025: 88.57%). • Net current liabilities stood at RMB 79.03 billion; current ratio improved slightly to 0.33. • Operating activities generated RMB 11.23 billion in cash (-24.28% y/y). Capital expenditure reached RMB 12.08 billion, mainly for aircraft and engines. • Interest-bearing debt declined 5.66% to RMB 215.40 billion, 89.53% of which is RMB-denominated.
Fleet and operations • Fleet expanded to 972 aircraft (average age 10.60 years) after taking delivery of 17 aircraft—11 A320 family, four B737, and two C919—and retiring nine. • Available seat kilometres (ASK) grew 1.75%, while daily aircraft utilisation slipped to 8.59 hours from 8.76. • The carrier transported 79.70 million passengers (+3.35%) and 0.74 million tonnes of cargo and mail (+0.05%).
Capital commitments and outlook • Outstanding aircraft and equipment commitments total RMB 101.38 billion. • On 17 July 2026 the board approved agreements to acquire 15 Airbus A350-900s for Air China and 40 A320neo family aircraft for subsidiary Shenzhen Airlines, subject to shareholder and regulatory approvals.
Dividend and governance • No interim dividend was declared. • The company stated full compliance with the Hong Kong Corporate Governance Code and reported no material contingent liabilities or significant post-balance-sheet events beyond the planned aircraft purchases.
Risk highlights • A 5% movement in jet fuel prices would change fuel costs by roughly RMB 1.64 billion. • A 1% fluctuation in the RMB/US dollar rate would affect net profit and equity by about RMB 0.15 billion. • Management cited persistent competitive pressures in both domestic and international markets, as well as potential traffic diversion from China’s expanding high-speed rail network.
Air China’s interim results underscore the airline’s recovery in demand but also highlight sensitivity to fuel price volatility and currency movements, factors that continue to weigh on profitability despite revenue growth.