REG - Air China Ld - 2024 ANNUAL RESULTS
28/03/2025 15:00
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RNS Number : 7551C Air China Ld 28 March 2025
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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)
2024 ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
• During the Reporting Period, the Group recorded a revenue of
RMB166,699 million. The net loss attributable to equity shareholders of the
Company was RMB233 million.
• As considered and approved by the 2nd meeting of the seventh
session of the Board of the Company, the Company proposed not to make profit
distribution for the year of 2024.
2024 ANNUAL RESULTS
The Board hereby announces the audited consolidated financial results of the
Group for the year ended 31 December 2024, which have been prepared in
accordance with IFRS Accounting Standards, together with the corresponding
comparative figures for the year ended 31 December 2023 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
NOTES RMB'000 RMB'000
Revenue 3 166,698,880 141,100,234
Other income and gains 5 7,319,912 7,401,756
174,018,792 148,501,990
Operating expenses
Jet fuel costs (53,720,436) (46,725,219)
Employee compensation costs (34,268,745) (29,300,310)
Depreciation and amortisation (29,102,968) (27,110,507)
Take-off, landing and depot charges (20,915,459) (15,554,795)
Aircraft maintenance, repair and overhaul costs (12,848,288) (9,921,853)
Air catering charges (4,165,874) (3,002,720)
Aircraft and engine lease expense (358,885) (237,319)
Other lease expenses (598,621) (602,403)
Other flight operation expenses (9,119,619) (7,838,908)
Selling and marketing expenses (4,695,760) (3,423,478)
General and administrative expenses (1,872,201) (1,683,284)
Impairment loss recognised on non-current assets (143,240) (187,054)
Net impairment loss reversed/(recognised) 9,507 (24,617)
under expected credit loss model
(171,800,589) (145,612,467)
Profit from operations 6 2,218,203 2,889,523
Finance income 521,356 605,004
Finance costs 7 (6,398,748) (6,943,087)
Share of results of associates 2,610,723 2,554,412
Share of results of joint ventures 209,121 279,566
Exchange losses, net (759,523) (1,035,197)
Loss before taxation (1,598,868) (1,649,779)
Income tax (expense)/credit 8 (846,474) 88,531
Loss for the year (2,445,342) (1,561,248)
Attributable to:
- Equity shareholders of the Company (232,557) (1,038,411)
- Non-controlling interests (2,212,785) (522,837)
(2,445,342) (1,561,248)
Loss per share
- Basic and diluted 9 RMB(1.47) cents RMB(6.74) cents
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
2024 2023
RMB'000 RMB'000
Loss for the year (2,445,342) (1,561,248)
Other comprehensive (expense)/income for the year
Items that will not be reclassified to profit or loss:
- Fair value (losses)/gains on investments in equity instruments (79,126) 149,253
at fair value through other comprehensive income
- Remeasurement of net defined benefit liability (15,130) (912)
- Share of other comprehensive (expense)/income of (31,632) 43,458
associates and joint ventures
- Income tax credit/(expense) relating to items that 19,782 (37,313)
will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss:
- Fair value gains on investments in debt instruments 27,772 9,138
at fair value through other comprehensive income
- Impairment loss reversed/(recognised) on investments in 394 (6,688)
debt instruments at fair value through other
comprehensive income
- Share of other comprehensive expense of associates (28,272) (472,484)
and joint ventures
- Exchange differences on translation of foreign operations 434,021 250,817
- Income tax relating to items that may be reclassified subsequently to profit (7,042) (613)
or loss
Other comprehensive income/(expense) for the year (net of tax) 320,767 (65,344)
Total comprehensive expense for the year (2,124,575) (1,626,592)
Attributable to:
- Equity shareholders of the Company 114,293 (1,097,758)
- Non-controlling interests (2,238,868) (528,834)
(2,124,575) (1,626,592)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2024
31 December 31 December
2024 2023
NOTE RMB'000 RMB'000
Non-current assets
Property, plant and equipment 122,180,871 117,728,498
Right-of-use assets 118,832,142 120,971,059
Investment properties 693,059 726,594
Intangible assets 106,563 106,580
Goodwill 4,095,732 4,095,732
Interests in associates 14,632,923 12,863,023
Interests in joint ventures 2,423,853 2,413,799
Advance payments for aircraft and flight equipment 24,689,737 26,114,064
Deposits for aircraft under leases 526,004 525,463
Equity instruments at fair value through 1,791,273 1,547,986
other comprehensive income
Debt instruments at fair value through other comprehensive income 1,426,851 1,397,310
Deferred tax assets 12,959,766 13,757,180
Other non-current assets 704,196 696,685
305,062,970 302,943,973
Current assets
Inventories 4,224,992 3,682,821
Accounts receivable 11 3,670,252 3,182,797
Bills receivable 7,785 3,601
Prepayments, deposits and other receivables 5,223,257 5,852,345
Financial assets at fair value through profit or loss 37,559 2,505
Restricted bank deposits 1,428,429 611,692
Cash and cash equivalents 21,039,472 15,016,804
Assets held for sale 94,829 108,527
Other current assets 4,960,628 3,873,629
40,687,203 32,334,721
Total assets 345,750,173 335,278,694
Current liabilities
Air traffic liabilities (11,098,740) (8,366,222)
Accounts payable 12 (18,869,784) (17,954,298)
Bills payable - (500,160)
Dividends payable (98,000) (98,000)
Other payables and accruals (13,437,502) (15,701,546)
Advance (36,270) -
Current taxation (130,653) (76,662)
Lease liabilities (17,464,654) (18,175,349)
Interest-bearing borrowings (74,544,705) (47,271,768)
Provision for return condition checks (758,575) (650,777)
Contract liabilities (1,171,172) (1,522,492)
(137,610,055) (110,317,274)
Net current liabilities (96,922,852) (77,982,553)
Total assets less current liabilities 208,140,118 224,961,420
Non-current liabilities
Lease liabilities (59,134,187) (64,053,967)
Interest-bearing borrowings (84,836,960) (104,759,631)
Provision for return condition checks (19,228,054) (17,196,982)
Provision for early retirement benefit obligations (359) (720)
Long-term payables (727,741) (1,082,301)
Contract liabilities (2,565,188) (1,663,987)
Defined benefit obligations (186,700) (187,810)
Deferred income (406,943) (404,103)
Deferred tax liabilities (128,016) (347,910)
(167,214,148) (189,697,411)
NET ASSETS 40,925,970 35,264,009
CAPITAL AND RESERVES
Issued capital 17,448,421 16,200,793
Treasury shares (3,047,564) (3,047,564)
Reserves 30,727,315 24,052,746
Total equity attributable to equity 45,128,172 37,205,975
shareholders of the Company
Non-controlling interests (4,202,202) (1,941,966)
TOTAL EQUITY 40,925,970 35,264,009
NOTES
FOR THE YEAR ENDED 31 DECEMBER 2024
1. BASIS OF PREPARATION
As at 31 December 2024, the Group's current liabilities exceeded its current
assets by approximately RMB96,923 million. The liquidity of the Group is
primarily dependent on its ability to maintain adequate cash inflows from
operations and sufficient financing to meet its financial obligations as and
when they fall due. Considering the Company's sources of liquidity and the
unutilised bank facilities of RMB144,106 million as at 31 December 2024, the
Directors believe that adequate funding is available to fulfil the Group's
debt obligations and capital expenditure requirements to continue in
operational existence for the foreseeable future when preparing the
consolidated financial statements for the year ended 31 December 2024.
Accordingly, the consolidated financial statements have been prepared on a
basis that the Group will be able to continue as a going concern.
The consolidated financial statements have been prepared in accordance with
IFRS Accounting Standards as issued by the International Accounting Standards
Board ("IASB"). For the purpose of preparation of the consolidated financial
statements, information is considered material if such information is
reasonably expected to influence decisions made by primary users. In addition,
the consolidated financial statements include applicable disclosures required
by the Listing Rules and by the Hong Kong Companies Ordinance ("Companies
Ordinance").
The consolidated financial statements have been prepared on the historical
cost basis, except for certain financial instruments that are measured at fair
values at the end of each reporting period, as explained in the accounting
policies set out below. Historical cost is generally based on the fair value
of the consideration given in exchange for goods and services..
2. APPLICATION OF NEW AND AMENDMENTS TO IFRS Accounting Standards
Amendments to IFRS Accounting Standards that are mandatorily effective for the
current year
In the current year, the Group has applied the following new and amendments to
IFRS Accounting Standards as issued by the IASB for the first time, which are
mandatorily effective for the Group's annual period beginning on 1 January
2024 for the preparation of the consolidated financial statements:
Amendments to IFRS 16 Lease Liability in a Sale and Leaseback
Amendments to IAS 1 Classification of Liabilities as Current or Non-current
Amendments to IAS 1 Non-current Liabilities with Covenants
Amendments to IAS 7 and IFRS 7 Supplier Finance Arrangements
Amendments to IFRS Accounting Standards in issue but not yet effective
The Group has not early applied the following amendments to IFRS Accounting
Standards that have been issued but are not yet effective:
Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of
Financial Instruments(3)
Amendments to IFRS 9 and IFRS 7 Contracts Referencing Nature- dependent Electricity(3)
Amendments to IFRS 10 and IFRS 28 Sale or Contribution of Assets between an Investor
and its Associate or Joint Venture(1)
Amendments to IFRS Annual Improvements to IFRS Accounting
Accounting Standards
Standards - Volume 11(3)
Amendments to IAS 21 Lack of Exchangeability(2)
IFRS 18 Presentation and Disclosure in Financial Statements(4)
(1) Effective for annual periods beginning on or after a date to
be determined.
(2) Effective for annual periods beginning on or 1 January 2025.
(3) Effective for annual periods beginning on or 1 January 2026.
(4) Effective for annual periods beginning on or 1 January 2027.
Except for the new IFRS Accounting Standard mentioned below, the Directors
anticipate that the application of all other amendments to IFRS Accounting
Standards will have no material impact on the consolidated financial
statements in the foreseeable future.
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 Presentation and Disclosure in Financial Statements, which sets out
requirements on presentation and disclosures in financial statements, will
replace IAS 1 Presentation of Financial Statements. This new IFRS Accounting
Standard, while carrying forward many of the requirements in IAS 1, introduces
new requirements to present specified categories and defined subtotals in the
statement of profit or loss; provide disclosures on management-defined
performance measures in the notes to the financial statements and improve
aggregation and disaggregation of information to be disclosed in the financial
statements. In addition, some IAS 1 paragraphs have been moved to IAS 8 and
IFRS 7. Minor amendments to IAS 7 Statement of Cash Flows and IAS 33 Earnings
per Share are also made.
IFRS 18, and amendments to other standards, will be effective for annual
periods beginning on or after 1 January 2027, with early application
permitted. The application of the new standard is expected to affect the
presentation of the statement of profit or loss and disclosures in the future
financial statements. The Group is in the process of assessing the detailed
impact of IFRS 18 on the Group's consolidated financial statements.
3. REVENUE
2024 2023
RMB'000 RMB'000
Revenue from contracts with customers 166,390,725 140,721,730
Rental income (included in revenue of airline operations segment) 308,155 378,504
Total revenue 166,698,880 141,100,234
Disaggregation of revenue from contracts with customers
2024 2023
Segments Airline operations Other operations Airline operations Other
operations
RMB'000 RMB'000 RMB'000 RMB'000
Type of goods or services
Airline operations
Passenger 151,788,672 - 130,516,558 -
Cargo and mail 7,413,855 - 4,164,743 -
Others 1,876,406 - 1,704,339 -
161,078,933 - 136,385,640 -
Other operations
Aircraft engineering income - 5,179,776 - 4,238,926
Others - 132,016 - 97,164
- 5,311,792 - 4,336,090
Total 161,078,933 5,311,792 136,385,640 4,336,090
Geographical markets
Mainland China 112,871,422 5,311,792 108,050,710 4,336,090
Hong Kong Special Administrative Region ("SAR"), Macau SAR 5,118,889 - 4,126,997 -
and Taiwan, China
International 43,088,622 - 24,207,933 -
Total 161,078,933 5,311,792 136,385,640 4,336,090
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 RMB1,351 million (2023: RMB1,455 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 operating businesses are structured and managed separately,
according to the nature of their operations and the services they provide. 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 selling
prices used for sales made to third parties at the then prevailing market
prices.
Operating segments
The following tables present the Group's consolidated revenue and loss before
taxation regarding the Group's operating segments in accordance with the
Accounting Standards for Business Enterprises of the PRC ("CASs") for the
years ended 31 December 2024 and 2023, and the reconciliations of reportable
segment revenue and loss before taxation to the Group's consolidated amounts
under IFRS Accounting Standards:
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) -
Revenue for reportable segments 161,616,739 14,580,411 (9,498,270) 166,698,880
under CASs and IFRS Accounting Standards
Segment (loss)/profit
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 6,330
IFRS Accounting Standards and CASs
Loss before taxation for the year (1,598,868)
under IFRS Accounting Standards
Year ended 31 December 2023
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Revenue
Sales to external customers 136,764,144 4,336,090 - 141,100,234
Inter-segment sales 206,970 7,909,425 (8,116,395) -
Revenue for reportable segments 136,971,114 12,245,515 (8,116,395) 141,100,234
under CASs and IFRS Accounting Standards
Segment (loss)/profit before taxation
(Loss)/profit before taxation for reportable segments under CASs (2,084,670) 475,041 (50,778) (1,660,407)
Effect of differences between 10,628
IFRS Accounting Standards and CASs
Loss before taxation for the year (1,649,779)
under IFRS Accounting Standards
The following tables present the assets, liabilities and other information of
the Group's operating segments under CASs as at 31 December 2024 and 2023 and
the reconciliations of reportable segment assets, segment liabilities and
other segment information to the Group's consolidated amounts under IFRS
Accounting Standards:
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Segment assets
Total assets for reportable segments as at 31 December 2024 under CASs 335,387,462 35,068,041 (24,686,091) 345,769,412
Effect of differences between (19,239)
IFRS Accounting Standards and CASs
Total assets under IFRS Accounting Standards 345,750,173
Total assets for reportable segments as at 31 December 2023 under CASs 323,324,926 30,250,454 (18,272,699) 335,302,681
Effect of differences between (23,987)
IFRS Accounting Standards and CASs
Total assets under IFRS Accounting Standards 335,278,694
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Segment liabilities
Total liabilities for reportable segments as at 31 December 2024 under CASs 301,829,477 27,135,795 (24,141,069) 304,824,203
and IFRS Accounting Standards
Total liabilities for reportable segments as at 31 December 2023 under CASs 294,072,306 23,748,047 (17,805,668) 300,014,685
and IFRS Accounting Standards
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 2,535,142 284,702 - 2,819,844 - 2,819,844
and joint ventures
Net impairment losses reversed/(recognised) on financial assets 11,792 (27,985) 25,700 9,507 - 9,507
Impairment losses recognised 145,588 10,412 - 156,000 - 156,000
on non-financial assets
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 14,310,136 2,693,530 (86,809) 16,916,857 139,919 17,056,776
joint ventures
Additions to non-current assets 34,264,696 401,343 (442,547) 34,223,492 - 34,223,492
Year ended 31 December 2023
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 2,501,992 331,986 - 2,833,978 - 2,833,978
and joint ventures
Net impairment losses (recognised)/reversed on financial assets (18,271) 41,094 (47,440) (24,617) - (24,617)
Impairment losses recognised 192,203 29,900 - 222,103 - 222,103
on non-financial assets
Depreciation and amortisation 26,839,044 437,075 (154,982) 27,121,137 (10,630) 27,110,507
Income tax credit/(expense) 254,127 (170,957) 8,018 91,188 (2,657) 88,531
Interests in associates and 12,559,126 2,656,782 (79,005) 15,136,903 139,919 15,276,822
joint ventures
Additions to non-current assets 25,053,588 346,788 (17,211) 25,383,165 - 25,383,165
Geographical information
The following table presents the Group's consolidated revenue under IFRS
Accounting Standards by geographical location for the years ended 31 December
2024 and 2023, respectively:
Year ended 31 December 2024
Mainland Hong Kong SAR, Macau SAR and Taiwan, China International Total
China
RMB'000 RMB'000 RMB'000 RMB'000
Sales to external customers and total revenue 118,491,369 5,118,889 43,088,622 166,698,880
Year ended 31 December 2023
Mainland Hong Kong SAR, Macau SAR and Taiwan, China International Total
China
RMB'000 RMB'000 RMB'000 RMB'000
Sales to external customers and total revenue 112,765,304 4,126,997 24,207,933 141,100,234
In determining the Group's geographical information, revenue is attributed to
the segments based on the origin or destination of each flight. Assets, which
consist principally of aircraft and ground equipment, supporting the Group's
worldwide transportation network, are mainly registered/located in Mainland
China. According to the business demand, the Group needs to flexibly allocate
different aircraft to match the need of the route network. An analysis of the
assets of the Group by geographical distribution has therefore not been
included.
5. OTHER INCOME AND GAINS
2024 2023
RMB'000 RMB'000
Co-operation routes income and subsidy income 4,295,552 4,450,650
Dividend income 36,740 14,286
Gains/(losses) on disposal of:
- Property, plant and equipment and right-of-use assets 1,029,912 934,614
- Asset held for sale (17,527) 18,519
- Investment properties - (315)
Gain/(loss) arising on financial assets at FVTPL 54 (893)
Others (Note) 1,975,181 1,984,895
7,319,912 7,401,756
Note: These mainly include engines and flight operation remedies.
6. PROFIT FROM OPERATIONS
The Group's profit from operations is arrived at after charging:
2024 2023
RMB'000 RMB'000
Depreciation of property, plant and equipment 13,439,898 11,611,121
Depreciation of right-of-use assets 15,629,518 15,468,124
Depreciation of investment properties 33,535 31,256
Amortisation of intangible assets 17 6
Total depreciation and amortisation 29,102,968 27,110,507
Impairment losses recognised on property, plant and equipment 143,240 184,166
Impairment losses recognised on inventories 12,760 35,049
Impairment losses recognised on interests in associates - 2,888
Auditors' remuneration:
- Audit related services 21,847 19,395
- Other services 1,540 1,088
7. FINANCE COSTS
2024 2023
RMB'000 RMB'000
Interest on interest-bearing borrowings 4,025,619 3,872,746
Interest on lease liabilities 2,683,519 3,328,563
Imputed interest expenses on defined benefit obligations 5,147 6,204
6,714,285 7,207,513
Less: Interest capitalised (Note) (315,537) (264,426)
6,398,748 6,943,087
Note: The interest capitalisation rates ranged from 2.40% to 4.00% per annum
(2023: 2.40% to 4.45% per annum) relating to the costs of related borrowings
during the year.
8. INCOME TAX EXPENSE/(CREDIT)
2024 2023
RMB'000 RMB'000
Current income tax:
- Mainland China 247,162 214,771
- Hong Kong SAR and Macau SAR, China - -
Under provision in respect of prior years 879 13,600
Deferred tax 598,433 (316,902)
846,474 (88,531)
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and
Implementation Regulation of the EIT Law, except for three (2023: three)
branches and five (2023: five) subsidiaries of the Company, and some branches
of two (2023: two) subsidiaries of the Company which are taxed at a
preferential rate of 15% (2023: 15%), all group companies located in Mainland
China are subject to a income tax rate of 25% during the year (2023: 25%).
Subsidiaries in Hong Kong SAR, China are taxed at profits tax rate of 16.5%
(2023: 16.5%) and subsidiaries in Macau SAR, China are taxed at profits tax
rate of 12% (2023: 12%), for each reporting period.
In respect of majority of the Group's overseas airline activities, the Group
has either obtained exemptions from overseas taxation pursuant to the
bilateral aviation agreements between the overseas governments and the PRC
government, or has sustained tax losses in these overseas jurisdictions.
Accordingly, no provision for overseas tax has been made for overseas airlines
activities in the current and prior years.
The taxation for the year can be reconciled to the loss before taxation per
consolidated statement of profit or loss as follows:
2024 2023
RMB'000 RMB'000
Loss before taxation (1,598,868) (1,649,779)
Tax at the applicable tax rate of 25% (399,717) (412,445)
Preferential tax rates on income of group entities 111,747 85,063
Tax effect of share of results of associates and joint ventures (713,367) (703,457)
Tax effect of non-deductible expenses 190,830 139,600
Tax effect of non-taxable income (16,259) (18,395)
Reversal of tax losses recognised as deferred tax assets in prior years 907,589 -
Tax effect of deductible temporary differences and 1,058,113 1,005,444
tax losses not recognised
Utilisation of tax losses and deductible temporary differences (17,067) (197,941)
not recognised in prior years
Under provision in respect of prior years 879 13,600
Reversal of unrealised equity investment income recognised (276,274) -
as deferred tax liabilities in prior years
Income tax expense/(credit) 846,474 (88,531)
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:
2024 2023
RMB'000 RMB'000
Loss
Loss for the purpose of basic and diluted loss per share (232,557) (1,038,411)
2024 2023
'000 '000
Number of shares
Number of ordinary shares for the purpose of 15,864,560 15,401,755
basic and diluted loss per share
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 number of treasury shares held by Cathay
Pacific through reciprocal shareholding.
The Group had no potential dilutive ordinary shares in issue during both
years.
10. DIVIDENDS
No dividend was paid or proposed for ordinary shareholders of the Company
during the years ended 31 December 2023 and 2024, nor has any dividend been
proposed since the end of both reporting periods.
11. ACCOUNTS RECEIVABLE
2024 2023
RMB'000 RMB'000
Accounts receivable 3,834,983 3,357,916
Less: Allowance for expected credit losses (164,731) (175,119)
3,670,252 3,182,797
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:
2024 2023
RMB'000 RMB'000
Within 30 days 2,963,962 2,349,927
31 to 60 days 147,934 265,953
61 to 90 days 139,120 155,337
Over 90 days 419,236 411,580
3,670,252 3,182,797
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:
2024 2023
RMB'000 RMB'000
Within 30 days 8,354,764 7,517,749
31 to 60 days 2,009,755 2,479,368
61 to 90 days 4,806,725 3,411,397
Over 90 days 3,698,540 4,545,784
18,869,784 17,954,298
The accounts payable are non-interest-bearing and have normal credit terms up
to 90 days.
CONSOLIDATED BALANCE SHEET
At 31 DECEMBER 2024
(Prepared under the CASs)
31 December 31 December
ASSETS 2024 2023
RMB'000 RMB'000
Current assets
Cash and bank 22,467,901 15,628,496
Financial assets at fair value through profit or loss 37,559 2,505
Bills receivable 7,785 3,601
Accounts receivable 3,670,252 3,182,797
Accounts receivable 462,245 414,431
Other receivables 4,761,012 5,437,914
Inventories 4,224,992 3,682,821
Assets held for sale 94,829 108,527
Other current assets 4,960,628 3,873,629
Total current assets 40,687,203 22,245,131
Non-current assets
Debt instruments at fair value through other comprehensive income 1,426,851 1,397,310
Long-term receivables 910,872 847,273
Long-term equity investments 16,916,857 15,136,903
Equity instruments at fair value through other comprehensive income 1,793,316 1,550,029
Investment properties 305,917 320,827
Fixed assets 109,655,401 104,970,803
Right-of-use assets 114,042,465 116,342,903
Construction in progress 36,767,279 38,407,989
Intangible assets 5,937,851 5,817,144
Goodwill 4,097,942 4,097,942
Long-term deferred expenses 314,274 286,247
Deferred tax assets 12,908,130 13,703,962
Other non-current assets 5,054 88,628
Total non-current assets 305,082,209 302,967,960
TOTAL assets 345,769,412 335,302,681
31 December 31 December
LIABILITIES AND SHAREHOLDERS' EQUITY 2024 2023
RMB'000 RMB'000
Current liabilities
Short-term loans 16,876,294 21,363,178
Short-term bonds payable 3,010,847 -
Bills payable - 500,160
Accounts payable 19,538,712 18,595,075
Air traffic liabilities 11,098,740 8,366,222
Advance 36,270 -
Contract liabilities 1,171,172 1,522,492
Employee compensations payable 3,441,130 3,088,820
Taxes payable 655,407 571,838
Other payables 11,075,198 16,085,401
Non-current liabilities repayable within one year 70,706,285 40,224,088
Total current liabilities 137,610,055 110,317,274
Non-current liabilities
Long-term loans 77,836,960 80,777,799
Corporate bonds 6,000,000 9,196,832
Long-term payables 16,785,219 28,752,343
Lease liabilities 59,134,187 64,053,967
Defined benefit obligations 186,700 187,810
Accrued liabilities 4,170,935 4,312,660
Deferred income 406,943 404,103
Deferred tax liabilities 128,016 347,910
Other non-current liabilities 2,565,188 1,663,987
Total non-current liabilities 167,214,148 189,697,411
Total liabilities 304,824,203 300,014,685
Shareholders' equity
Issued capital 17,448,421 16,200,793
Capital reserve 46,150,983 39,587,767
Other comprehensive income 550,334 215,566
Reserve funds 11,564,287 11,564,287
Retained earnings (30,744,120) (30,495,138)
General reserve 177,506 153,747
Safety funds - 2,940
Equity attributable to shareholders of the Company 45,147,411 37,229,962
Non-controlling interests (4,202,202) (1,941,966)
Total shareholders' equity 40,945,209 35,287,996
Total liabilities and shareholders' equity 345,769,412 335,302,681
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:
2024 2023
RMB'000 RMB'000
Net loss attributable to shareholders of the Company under CASs (237,305) (1,046,382)
Deferred taxation (1,582) (2,657)
Differences in value of fixed assets and certain non-current assets 6,330 10,628
Net loss attributable to shareholders of the Company under IFRS Accounting (232,557) (1,038,411)
Standards
31 December 31 December
2024 2023
RMB'000 RMB'000
Equity attributable to shareholders of the Company under CASs 45,147,411 37,229,962
Deferred taxation 51,636 53,218
Differences in value of fixed assets and certain non-current assets (210,794) (217,124)
Unrealised profit on the disposal of Hong Kong Dragon Airlines Limited 139,919 139,919
Equity attributable to shareholders of the Company under IFRS Accounting 45,128,172 37,205,975
Standards
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 Previous Increase/
year
year
(decrease)
Capacity
ASK (million) 356,103.62 292,513.16 21.74%
International 95,626.32 47,693.43 100.50%
Mainland China 250,051.04 237,326.42 5.36%
Hong Kong SAR, Macau SAR and Taiwan, China 10,426.25 7,493.31 39.14%
AFTK (million) 12,629.76 9,648.19 30.90%
International 5,593.32 2,939.26 90.30%
Mainland China 6,764.65 6,511.56 3.89%
Hong Kong SAR, Macau SAR and Taiwan, China 271.79 197.37 37.70%
ATK (million) 44,726.10 36,002.19 24.23%
Traffic
RPK (million) 284,349.95 214,172.87 32.77%
International 72,918.97 32,306.61 125.71%
Mainland China 203,880.63 176,788.86 15.32%
Hong Kong SAR, Macau SAR and Taiwan, China 7,550.35 5,077.40 48.71%
RFTK (million) 4,732.69 3,015.54 56.94%
International 3,001.96 1,637.80 83.29%
Mainland China 1,663.75 1,337.20 24.42%
Hong Kong SAR, Macau SAR and Taiwan, China 66.98 40.55 65.20%
Passengers carried (thousand) 155,315.51 125,454.54 23.80%
International 16,317.71 6,730.76 142.43%
Mainland China 134,256.06 115,547.16 16.19%
Hong Kong SAR, Macau SAR and Taiwan, China 4,741.74 3,176.62 49.27%
Cargo and mail carried (tonnes) 1,480,085.34 1,070,372.96 38.28%
Kilometres flown (million) 1,856.98 1,565.96 18.58%
Block hours (thousand) 2,950.89 2,529.46 16.66%
Number of flights 1,024,492 902,517 13.51%
International 102,399 46,956 118.07%
Mainland China 886,944 830,317 6.82%
Hong Kong SAR, Macau SAR and Taiwan, China 35,149 25,244 39.24%
RTK (million) 29,743.08 21,887.15 35.89%
Load factor
Passenger load factor (RPK/ASK) 79.85% 73.22% 6.63 ppt
International 76.25% 67.74% 8.52 ppt
Mainland China 81.54% 74.49% 7.04 ppt
Hong Kong SAR, Macau SAR and Taiwan, China 72.42% 67.76% 4.66 ppt
Cargo and mail load factor (RFTK/AFTK) 37.47% 31.26% 6.21 ppt
International 53.67% 55.72% (2.05 ppt)
Mainland China 24.59% 20.54% 4.06 ppt
Hong Kong SAR, Macau SAR and Taiwan, China 24.64% 20.54% 4.10 ppt
Overall load factor (RTK/ATK) 66.50% 60.79% 5.71 ppt
Utilisation
Daily utilisation of aircraft 8.90 8.14 0.76 hours
(block hours per day per aircraft)
Yield
Yield per RPK (RMB) 0.5338 0.6094 (12.41%)
International 0.5127 0.6627 (22.63%)
Mainland China 0.5371 0.5948 (9.70%)
Hong Kong SAR, Macau SAR and Taiwan, China 0.6488 0.7785 (16.66%)
Yield per RFTK (RMB) 1.5665 1.3811 13.42%
International 1.8999 1.7094 11.14%
Mainland China 0.8959 0.8907 0.58%
Hong Kong SAR, Macau SAR and Taiwan, China 3.2855 4.2950 (23.50%)
Unit cost
Operating expenses per ASK (RMB) 0.4824 0.4978 (3.09%)
Operating expenses per ATK (RMB) 3.8412 4.0445 (5.03%)
DEVELOPMENT OF FLEET
During the year of 2024, the Group introduced a total of 36 aircraft,
including four A320 series aircraft, 19 B737 series aircraft, three C919
aircraft, nine C909 aircraft and one business jet, and phased out a total of
11 aircraft, including three A330 series aircraft, six A320 series aircraft,
one B737 series aircraft and one business jet.
As at the end of 2024, the Group had a total of 930 aircraft with an average
age of 9.90 years, of which the Company operated a fleet of 504 aircraft in
total, with an average age of 9.60 years. The Company introduced 22 aircraft
and phased out 13 aircraft.
Details of the fleet of the Group are set out in the table below:
31 December 2024
Sub-total Self-owned Finance leases Operating leases Average age (year)
Airbus 433 195 119 119 9.70
A320 349 163 94 92 9.90
A330 54 22 5 27 11.79
A350 30 10 20 - 3.63
Boeing 457 186 97 174 10.73
B737 405 149 90 166 10.71
B747 10 8 2 - 15.47
B777 28 17 5 6 10.71
B787 14 12 - 2 7.86
COMAC 36 24 12 - 1.68
C909 33 21 12 - 1.81
C919 3 3 - - 0.17
Business jets 4 1 - 3 9.30
Total 930 406 228 296 9.90
Introduction Plan Phase-out Plan
2025 2026 2027 2025 2026 2027
Airbus 22 32 19 13 13 3
A320 22 32 19 9 13 3
A330 - - - 4 - -
Boeing 13 2 30 4 1 1
B737 13 - 22 4 1 1
B787 - 2 8 - - -
COMAC 12 10 10 - - -
C909 2 - - - - -
C919 10 10 10 - - -
Total 47 44 59 17 14 4
Note: Please refer to the actual operation for the introduction and phase-out
of the Group's fleet in the future.
2024 REVIEW
2024 marked the 75(th) anniversary of the founding of New China and served as
a critical year for achieving the goals and tasks outlined in the "14(th)
Five-Year Plan". Over the past year, under the guidance of Xi Jinping Thought
on Socialism with Chinese Characteristics for a New Era, we thoroughly
implemented the guiding principles of the 20(th) National Congress of the
Communist Party of China (CPC) and the Second and Third Plenary Sessions of
the 20(th) CPC Central Committee as well as the resolutions and deployments of
the CPC Central Committee and the State Council. The Group, focusing on
enhancing core functions and improving core competitiveness, while upholding
the Party's comprehensive leadership, insisting on deepening reforms and
pursuing high-quality development, has achieved new progress in various areas,
including safety, operating performance, service and reform, taking
significant strides toward building a world-class enterprise.
Ensuring stringent safety management for stable and secure operations. The
Group thoroughly implemented General Secretary Xi Jinping's key directives on
safety production and civil aviation, taking concrete actions to ensure "Two
Absolute Safeties (兩個絕對安全)". The Group formulated a dedicated
safety production work plan, steadily advanced the three-year action plan for
fundamental improvements in work safety and carried out comprehensive
self-inspections and corrective measures for major hidden safety hazards, thus
driving the dynamic elimination of hidden safety hazards. The Group continued
to enhance the development of five major systems: safety management, flight
training, aircraft maintenance, operation management, risk identification and
hidden hazard investigation, while further strengthening the safety foundation
and enhancing safety capabilities. Through meticulous production and
operational coordination, the Group strengthened oversight and control over
safety processes, ensuring that flight operations were dynamically aligned
with support capabilities. In 2024, the Group recorded 2.95 million safe
flight hours, representing a year-on-year increase of 17%, and successfully
completed major aviation transport support missions, including major charter
flights, the Paris Olympics, the Forum on China-Africa Cooperation, and the
evacuation of Chinese nationals from Lebanon.
Focusing on enhancing development quality and continuously improving operating
quality and performance. The Group made every effort to strengthen financial
outcomes, achieving quantitative growth and qualitative improvements in
production and operating performance. By "consolidating existing capacity and
expanding incremental capacity", the Group significantly increased its
effective capacity. Over the year, the Group's available seat kilometers (ASK)
reached 356.1 billion, representing a year-on-year increase of 22%. The Group
actively supported national diplomacy initiatives by accelerating the
resumption and opening of new international routes, doubling the Group's
international capacity compared to the previous year. The Group established a
resource management mechanism to maximise aircraft utilization and strived to
enhance aircraft operational usage efficiency, leading to a year-on-year
increase in daily aircraft utilisation rates. The Group intensified marketing
innovation by implementing a quarterly product release mechanism, refining its
inbound tourism product system and organising a series of campaigns
celebrating the 30(th) anniversary of "Phoenix Miles", so as to further
strengthen brand influence. Amid intensifying industry competition, the Group
reinforced yield management and maintained a leading position in yield level.
The Group pursued rigorous income and efficiency management and cost control,
continuously expanded financing channels, and achieved notable results through
refined financial management and oversight.
Fulfilling Our Mission and Responsibility to Serve the Nation's Priorities
with Greater Efficacy. We fully supported the development of domestically
produced civil aircraft, marking a significant milestone in the large-scale
operation of such aircraft. With the C909 and C919 aircraft soaring through
the skies adorned with the national flag, the Group aspired to become the
world's first operator of the C929. In alignment with the national regional
development strategy, the Group actively promoted the construction of hub
networks, increasing capacity concentration in key markets such as
Beijing-Tianjin-Hebei, Chengdu-Chongqing, Guangdong-Hong Kong-Macao and the
Yangtze River Delta. The Group accelerated the development of Beijing Capital
Airport and Chengdu Tianfu International Airport into international hubs,
optimising network structures and improving the quality of hub operation.
Continuing to strengthen its "Belt and Road" route network, the Group expanded
its coverage to 29 countries and operating 65 flight routes. The Group is
dedicated to rural revitalisation, with its targeted assistance efforts
earning the highest rating from the SASAC for seven consecutive years.
Committed to green and low-carbon development, the Group made steady progress
toward achieving carbon peaking, and initiated the routine use of domestically
produced sustainable aviation fuel on designated flights.
Enhancing service excellence with care and dedication. Guided by our
"people-centered" development philosophy, we focused on the objectives of the
"Year of Quality and Efficiency Enhancement for Civil Aviation Services",
striving to deliver high-quality services that meet customer expectations.
Adhering to the principles of "customer-oriented, problem-oriented and
value-oriented" services, the Group concentrated resources on establishing a
customer service centre and further refined its professional service
management system. Key systems, such as full-process passenger service
notification and in-flight meal reservation, were successfully launched,
steadily advancing the digital transformation of services. The Group further
improved its customer service mechanism to better understand customer needs,
design and deliver tailored products, thereby promoting continuous growth in
customer value.
Strengthening Party leadership and Party building to ensure new achievements
in high-quality development. We remain committed to high-quality Party
building as a cornerstone for high-quality development, fully embracing its
responsibilities and missions as a national flag carrier. The Group rigorously
implements the "Two Consistencies (兩個一以貫之)" approach, ensuring the
comprehensive strengthening of Party leadership while enhancing corporate
governance. The Group further optimised organisational structures in key
areas, reinforced the development of a robust cadre talent pipeline, and
continuously improved team vitality. The Group remains steadfast in advancing
comprehensive and strict governance of the Party, fostering a clean and
upright political environment that serves as a solid foundation for promoting
high-quality development and accelerating the construction of a world-class
enterprise.
As 2025 marks the final year of the "14(th) Five-Year Plan" and a pivotal
transition to the "15(th) Five-Year Plan", we will uphold the fundamental
principle of seeking progress while maintaining stability. The Group will
continue to shoulder its political responsibility for operational safety,
strengthen strategic support capabilities, and accelerate the development of
new business models. By pursuing high-quality development and accelerating the
construction of a world-class enterprise with tangible outcomes, the Group
will make new and greater contributions to building a great country and
advancing the grand cause of national rejuvenation!
BUSINESS OVERVIEW
Safe Operation
The Group remained committed to strictly implementing the comprehensive
national security concept and adhering to the political mandate of "Two
Absolute Safeties (兩個絕對安全)". It made every effort to achieve the
objectives of the three-year action plan for fundamentally improving work
safety, with a focus on the "Year of Tackling Hidden Hazards". Rigorous
investigations and rectifications of major hidden safety hazards were carried
out, emphasising immediate corrective actions and ensuring the dynamic
elimination of hidden hazards. The Group continued to strengthen the
development of five key systems: safety management, flight training, aircraft
maintenance, operation management, risk identification and hidden hazard
investigation. To establish a "Holistic Safety (大安全)" framework, the
Group built a long-term safety management mechanism, promoted voluntary
incident reporting and advanced the digital transformation of various business
systems. Meticulous oversight was applied to flight operations, ensuring
smooth seasonal flight adjustments, efficient peak-season scheduling and
comprehensive safety inspections. The Group successfully introduced the C919
aircraft and provided high-quality operational support, ensuring seamless
dynamic alignment between flight operations and support capabilities. Strict
management of dangerous goods air transport was maintained, including the
successful verification of transportation licenses. The Group continued to
strengthen aviation security measures and organised annual security
assessments for international flight routes. It implemented targeted measures
to address disruptive passenger behavior, and successfully passed the CAAC's
aviation security audit.
Air China recorded over 20 million consecutive safe flight hours, and was
awarded the "Two-Star Diamond Award for Flight Safety
(飛行安全鑽石二星獎)" by the CAAC. The Group successfully completed a
number of major aviation transport support missions, including the Spring
Festival travel rush, the Two Sessions, the Paris Olympics, the Forum on
China-Africa Cooperation, and the evacuation of Chinese nationals from
Lebanon. During the Reporting Period, the Group recorded 2.95 million safe
flight hours and safely transported 155 million passengers, maintaining an
overall stable and safe operational environment on an ongoing basis.
Enhancing Operating Performance
In 2024, the global economy maintained overall growth, while China's economy
showed a general recovery and improvement. The recovery process of the civil
aviation market also accelerated. Seizing market opportunities, the Company
focused on improving financial outcomes while ensuring safe operations. Fleet
efficiency was enhanced through meticulous production planning. The Company
strengthened capacity and pricing management to stabilise yield quality,
enforced strict cost controls to drive efficiency and reduce expenses, and
continuously improved operating quality and performance, achieving a
significant year-on-year reduction in losses.
Focusing on its annual production and operational targets, the Group remained
committed to increasing capacity, maintaining pricing and competing for market
share. By actively improving aircraft utilisation, closely monitoring market
trends and seizing opportunities, the Group achieved notable progress in
enhancing financial outcomes. The Group tapped into the potential of
connecting flight markets, targeted key market shares, refined base pricing,
and made precise capacity allocations. The Company continuously optimised
product design and refined marketing controls, enhancing product offerings
such as up-selling strategies and inbound travel packages for foreign
passengers to drive targeted sales. A multi-faceted approach was adopted to
boost flight revenue. The Group strengthened ancillary revenue streams,
implementing refined management of competitive products such as seat selection
services. Upholding a customer-centric approach, the Group deepened engagement
with high-value customers and launched the "Business Travel Prime Zone
(商旅專區)", a one-stop service platform for corporate clients, ensuring
seamless access to exclusive benefits. Furthermore, the Group amplified
marketing innovation, established a quarterly product release mechanism and
organising a series of campaigns to celebrate the 30(th) anniversary of
"Phoenix Miles", further strengthening Air China's brand influence. The Group
deepened the integration of passenger and cargo operations, driving
year-on-year growth in passenger and cargo transportation revenue.
The Group implemented strict cost control measures in line with the
requirements of "intensification, coordination and refinement". The Group
optimised the matching of aircraft types and routes with market demand to
manage operating costs and enhanced precision management of resource
utilization efficiency to ensure effective cost control. The Group
strengthened fund management, optimised its debt structure and reduced
financial expenses. The Group focused on improving labor productivity at all
levels and maintaining a balanced approach to labor cost management, in order
to effectively expanding profitability potential.
Enhancing Service
Guided by a "people-centred" development philosophy, the Group remained
focused on passenger needs, continuously upgrading service standards and
quality. The Group introduced innovative service products, improved the
full-process travel experience, and enhanced service delivery capabilities,
driving a comprehensive upgrade in service quality.
The Group elevated its service quality, systematically enhanced service
standards at all levels, laying a solid foundation for delivering high-quality
service. Focusing on the travel needs of "first-time flyers", the Group
pioneered the industry's first customised service for first-time passengers,
offering comprehensive travel guides, ground instructions and in-flight
assistance to ensure full coverage of their needs. Attention to service
details was emphasized, with the introduction of the "Travel with Care"
series. The in-flight Wi-Fi and Internet platforms were revamped with updated
entertainment content and layouts to meet the diverse needs of passengers. The
Group actively catered to passengers' needs and local culinary cultures, and
launched "Light Dishes on the Clouds (雲饗輕食)", "Sky-high seafood
(萬尺鱘鮮)" and a variety of regional specialty meal sets. On the C919
aircraft, the Group unveiled Air China's exclusive, first-of-its-kind
in-flight seat and cabin interior design, along with dedicated cabin
announcements, in-flight entertainment programs and amenities. The Group
optimised and upgraded Air China Express Routes to eight routes, strengthened
collaboration across the Air China family airlines, and leveraged key
resources to enhance the express route experience.
The Group optimised passenger compensation standards in irregular situations,
improving the overall service experience during irregular flights. The Group
refined voluntary ticket change policies, upgraded the ticket purchase
protection, and continued to improve ticketing services for passengers. The
Group newly introduced full-process luggage tracking services at 12 overseas
terminals, enabling cross-company baggage inquiries among Air China family
airlines. The Group expanded the booking permissions for five special services
within the Air China family on mobile platforms, along with membership
services and convenient functions, thereby enhancing passenger mobile service
experience. A full-process service information notification system was
launched, ensuring that passengers receive more comprehensive and accurate
information. The Group introduced an in-flight meal reservation management
system, enabling personalised meal selections for passengers. The Group
established a service expert team, selecting 157 specialists to provide core
support for future standard upgrades, quality improvements, and other service
enhancement initiatives.
Digital Transformation
To comprehensively advance digital transformation, the Group optimised the
organisational framework for digital transformation and enhanced its
operational mechanisms. Focusing on three key business areas, namely safety
operations, marketing services and management collaboration, the Group
continuously improved safety performance, precision marketing capabilities,
the end-to-end travel experience for passengers and the efficiency of
management collaboration. In addition, the Group promoted the integration of
"technology, business and management", leveraging the full potential of data
to drive efficiency and enhance quality.
In terms of safety operations, the Group accelerated promotion and deepened
the application of its global ground flight support platform, which enabled
visualised flight monitoring and support, intelligent flight scheduling and
mobile frontline operations, significantly enhancing flight ground support
capabilities. The Group also expedited the development of the operation
monitoring platform, optimising the process for end-to-end operational
monitoring and special situation handling. In the realm of marketing services,
the Group adopted a customer-centric approach, leveraging digital technology
to drive innovation in marketing models, business models and service quality
improvements. With the second phase of business model innovation, the Group
comprehensively upgraded the user-friendliness, convenience and smoothness of
its website sales and services, creating a one-stop digital air travel
platform to strengthen precision marketing and diversified product management
capabilities. The Group launched an in-flight meal reservation management
system, offering new services to passengers. Starting in September 2024, the
system undergoes trial operations on six routes, including Beijing-Sanya and
Beijing-Chongqing, providing passengers with personalised services such as
ordering, selecting or cancelling meals. The Group advanced the development of
intelligent customer service systems to improve the efficiency of passenger
services. In the area of management collaboration, the Group vigorously
promoted digital transformation in human resources, financial management and
internal controls, enhancing the effectiveness of internal management process.
Risk Prevention and Control
The Group continued to refine its integrated collaboration mechanism of
"upholding the rule of law, reinforcing internal controls, preventing risks
and promoting compliance". The risk prevention and control system was further
improved, enabling the Group to proactively and prudently address various
risks through comprehensive measures, ensuring that risks in all aspects
remain controllable and within manageable limits.
The Group solidified its risk assessment mechanism, enhancing the foresight
and predictability of risk forecasting. The Group conducted in-depth analysis
of major operating risks on an annual basis and implemented comprehensive
measures to address them. The Group improved the precision of risk
quantification, and actively built a monitoring and early-warning system for
material operating risks, employing tiered and rolling monitoring with
closed-loop management for key risk factors. The mechanism for evaluating
risks in major decision-making has been strengthened, continuously improving
the quality of evaluations and proactively preventing and mitigating risks.
Risk assessment was deeply integrated into corporate reforms, core tasks and
major project management. The Group refined its risk prevention and control
collaboration mechanism, with the Audit and Risk Management Committee (the
Supervision Committee) regularly reviewing reports on risk management,
internal controls and compliance. Senior management actively supervised key
risk control efforts, ensuring a prudent and sound response to various risks.
The Group continued to establish and improve the three lines of defense in
risk control and compliance management, reinforcing the responsibility
mechanism for risk prevention and control. Strict tiered and layered risk
management is enforced, with risk mitigation responsibilities clearly assigned
to specific roles and individuals, enhancing the Group's ability to manage
risks throughout the entire process.
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 RMB166,699 million,
representing an increase of RMB25,599 million or 18.14% as compared with last
year. Among which, air traffic revenue was RMB159,203 million, representing an
increase of RMB24,521 million or 18.21% as compared with last year; other
operating revenue was RMB7,496 million, representing a year-on-year increase
of RMB1,077 million or 16.79%.
REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2024 2023
(in RMB'000) Amount Percentage Amount Percentage Change
Mainland China 118,491,369 71.08% 112,765,304 79.92% 5.08%
International 43,088,622 25.85% 24,207,933 17.16% 77.99%
Hong Kong SAR, Macau SAR and Taiwan, China 5,118,889 3.07% 4,126,997 2.92% 24.03%
Total 166,698,880 100.00% 141,100,234 100.00% 18.14%
AIR PASSENGER REVENUE
During the Reporting Period, the Group recorded an air passenger revenue of
RMB151,789 million, representing an increase of RMB21,272 million over the
previous year. Among the air passenger revenue, the increase of capacity
contributed an increase of RMB28,373 million in the revenue, and the increase
of passenger load factor led to an increase of RMB14,392 million in the
revenue, while the decrease of passenger yield resulted in a decrease in
revenue of RMB21,493 million. The Group's capacity, passenger load factor and
yield per RPK in 2024 are as follows:
2024 2023 Change
ASK (million) 356,103.62 292,513.16 21.74%
Passenger load factor (%) 79.85 73.22 6.63 ppt
Yield per RPK (RMB) 0.5338 0.6094 (12.41%)
AIR PASSENGER REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2024 2023
(in RMB'000) Amount Percentage Amount Percentage Change
Mainland China 109,504,532 72.14% 105,155,385 80.57% 4.14%
International 37,385,320 24.63% 21,408,328 16.40% 74.63%
Hong Kong SAR, Macau SAR and Taiwan, China 4,898,820 3.23% 3,952,845 3.03% 23.93%
Total 151,788,672 100.00% 130,516,558 100.00% 16.30%
AIR CARGO AND MAIL REVENUE
During the Reporting Period, the Group's air cargo and mail revenue was
RMB7,414 million, representing an increase of RMB3,249 million as compared
with last year. Among them, the increase of capacity contributed an increase
of RMB1,287 million in the revenue, while the increase of cargo and mail load
factor resulted in an increase in revenue of RMB1,085 million, and the
increase of yield of cargo and mail resulted in an increase of RMB877 million
in the revenue. The capacity, cargo and mail load factor and yield per RFTK in
2024 are as follows:
2024 2023 Change
Available freight tonne kilometres (million) 12,629.76 9,648.19 30.90%
Cargo and mail load factor (%) 37.47% 31.26% 6.21 ppt
Yield per RFTK (RMB) 1.5665 1.3811 13.42%
AIR CARGO AND MAIL REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2024 2023
(in RMB'000) Amount Percentage Amount Percentage Change
Mainland China 1,490,484 20.10% 1,190,986 28.60% 25.15%
International 5,703,302 76.93% 2,799,606 67.22% 103.72%
Hong Kong SAR, Macau SAR and Taiwan, China 220,069 2.97% 174,151 4.18% 26.37%
Total 7,413,855 100.00% 4,164,743 100.00% 78.01%
OPERATING EXPENSES
During the Reporting Period, the Group's operating expenses were RMB171,801
million, representing an increase of 17.98% from RMB145,612 million of last
year. The breakdown of the operating expenses is set out below:
2024 2023
(in RMB'000) Amount Percentage Amount Percentage Change
Jet fuel costs 53,720,436 31.27% 46,725,219 32.09% 14.97%
Take-off, landing and depot charges 20,915,459 12.18% 15,554,795 10.68% 34.46%
Depreciation and amortisation 29,102,968 16.94% 27,110,507 18.62% 7.35%
Aircraft maintenance, repair and overhaul costs 12,848,288 7.48% 9,921,853 6.81% 29.49%
Employee compensation costs 34,268,745 19.95% 29,300,310 20.12% 16.96%
Air catering charges 4,165,874 2.42% 3,002,720 2.06% 38.74%
Selling and marketing expenses 4,695,760 2.73% 3,423,478 2.35% 37.16%
General and administrative expense 1,872,201 1.09% 1,683,284 1.16% 11.22%
Others 10,210,858 5.94% 8,890,301 6.11% 14.85%
Total 171,800,589 100.00% 145,612,467 100.00% 17.98%
• Jet fuel costs increased by RMB6,995 million on a
year-on-year basis, mainly due to the combined effect of the increase in the
consumption of jet fuel and decrease in the prices of jet fuel.
• Take-off, landing and depot charges increased by RMB5,361
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 RMB1,992
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
RMB2,926 million on a year-on-year basis, mainly due to the year-on-year
increase in flying hours.
• Employee compensation costs increased by RMB4,968 million on
a year-on-year basis, mainly due to the inclusion of Shandong Aviation Group
Corporation in the consolidated financial statements since 21 March 2023 and
the year-on-year increase in flight hour fees.
• Air catering charges increased by RMB1,163 million on a
year-on-year basis, mainly due to the increase in the number of passengers.
• Selling and marketing expenses increased by RMB1,272 million
on a year-on-year basis, mainly due to the increase in handling fees for
agency services and booking fees resulting from the increase in the sales
volumes and the number of passengers.
• General and administrative expenses increased by RMB189
million on a year-on-year basis, mainly due to the effect of the inclusion of
Shandong Aviation Group Corporation in the consolidated financial statements
since 21 March 2023.
• 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 RMB1,321 million on a year-on-year basis, mainly
due to the inclusion of Shandong Aviation Group Corporation in the
consolidated financial statements since 21 March 2023 and 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 RMB521
million, representing a year-on-year decrease of RMB84 million or 13.83%; and
incurred finance costs (excluding the capitalised portion) of RMB6,399
million, representing a year-on-year decrease of RMB544 million or 7.84%.
During the Reporting Period, the Group recorded net exchange losses of RMB760
million, which was decreased by RMB276 million on a year-on-year basis.
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 RMB2,820 million, representing a
decrease of RMB14 million from the previous year. Among which, during the
Reporting Period, the Group recognised a gain on investment of Cathay Pacific
of RMB2,499 million, representing a year-on-year increase of RMB67 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 was
RMB345,750 million, representing an increase of 3.12% from that of 31 December
2023, among which current assets accounted for RMB40,687 million or 11.77% of
the total assets, while non-current assets accounted for RMB305,063 million or
88.23% of the total assets.
Among the current assets, cash and cash equivalents were RMB21,039 million,
accounting for 51.71% of the current assets and representing an increase of
40.11% from that as at 31 December 2023, which was mainly attributable to the
non-public issuance of shares by the Company, and the flexible adjustment of
its funds according to its 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 RMB241,013 million, accounting for 79.00% of the non-current
assets and representing an increase of 0.97% from that as at 31 December 2023.
ASSET MORTGAGE/PLEDGE
As of 31 December 2024, the Group, pursuant to certain bank loans and finance
leasing agreements, had secured aircraft and buildings with an aggregated book
value of approximately RMB86,462 million (RMB84,599 million as at 31 December
2023) and land use rights with book value of approximately RMB23 million
(RMB24 million as at 31 December 2023). Meanwhile, the Group had monetary
capital with restricted ownership of approximately RMB1,428 million
(approximately RMB612 million as at 31 December 2023), 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 2024, the Group's capital expenditure totalled RMB16,788 million, of which
the total investment in aircraft was RMB13,403 million, mainly including
procurement of aircraft and engines, aircraft modifications, flight
simulators, etc. The cash component for the long-term investments amounted to
RMB509 million, mainly including the Tianma Project and the capital increase
in Sichuan Airlines. Other capital expenditure investment amounted to RMB2,876
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 RMB14,633 million, representing an increase of 13.76%
from that of 31 December 2023, 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 RMB14,311 million.
As at the end of the Reporting Period, the Group's equity investment in its
joint ventures was RMB2,424 million, representing an increase of 0.42% from
that as at 31 December 2023, mainly due to new investments and recognising the
share of gains of joint ventures during the Reporting Period.
DEBT STRUCTURE ANALYSIS
At the end of the Reporting Period, the Group's total liabilities were
RMB304,824 million, representing an increase of 1.60% from that as at 31
December 2023. Among them, current liabilities amounted to RMB137,610 million,
accounting for 45.14% of the total liabilities; and non-current liabilities
amounted to RMB167,214 million, accounting for 54.86% of the total
liabilities.
Among the current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB92,010
million, representing an increase of 40.59% from that as at 31 December 2023.
Among the non-current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB143,971
million, representing a decrease of 14.72% from that as at 31 December 2023.
Details of interest-bearing debts of the Group categorised by currency are set
out below:
31 December 2024 31 December 2023
(in RMB'000) Amount Percentage Amount Percentage Change
RMB 205,662,318 87.15% 197,161,354 84.16% 4.31%
US dollars 29,874,295 12.66% 36,018,880 15.38% (17.06%)
Others 443,893 0.19% 1,080,481 0.46% (58.92%)
Total 235,980,506 100.00% 234,260,715 100.00% 0.73%
COMMITMENTS AND CONTINGENT LIABILITIES
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 32.04% from RMB72,079 million as at 31 December 2023
to RMB95,175 million as at 31 December 2024. The Group's investment
commitments mainly represented the investment agreements entered into,
amounted to RMB313 million as at 31 December 2024, as compared to RMB457
million as at 31 December 2023.
GEARING RATIO
As at the end of the Reporting Period, the Group's gearing ratio (total
liabilities divided by total assets) was 88.16%, representing a decrease of
1.32 percentage points from that of 31 December 2023.
WORKING CAPITAL AND ITS SOURCES
At the end of the Reporting Period, the Group's net current liabilities
(current liabilities minus current assets) were RMB96,923 million,
representing an increase of RMB18,940 million from that as at 31 December
2023. Based on the structure of current assets and current liabilities, the
Group's current ratio (current assets divided by current liabilities) was
0.30, representing an increase of 0.01 as compared to that as at 31 December
2023.
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 RMB27,984 million,
representing an increase of RMB80 million from that in 2023. Net cash outflow
from investing activities was RMB17,863 million, representing an increase of
net outflow of RMB2,617 million, or 17.16% from that of 2023, mainly due to
the consolidation of Shandong Aviation Group Corporation into the Group for
the corresponding period of the previous year with the recognition of net cash
received from the acquisition of a subsidiary of RMB5,392 million. Net cash
outflow arising from financing activities amounted to RMB3,996 million,
representing a decrease of RMB4,337 million from that of 2023, mainly due to
the fact that the financing scale has been increased in order to ensure
security for liquidity.
The Company has obtained bank facilities of RMB232,246 million in aggregate
granted by several banks in China, among which approximately RMB88,140 million
has been utilised and approximately RMB144,106 million remained unutilised.
The remaining amount is sufficient to meet the Group's demands on working
capital and future capital commitments.
OPERATIONAL PLAN
The Company has identified the following key priorities for 2025: (1) to
firmly establish the concept of safe development and shoulder the political
responsibility for safety operations; (2) to accelerate the improvement of the
quality and efficiency of core business operations, continuously enhancing
profitability; (3) to continuously strengthen strategic support capabilities,
uphold fundamental principles while breaking new ground, and comprehensively
deepen reforms; (4) to fully enhance the passenger service experience,
striving to build brand value advantage; (5) to comprehensively strengthen the
Party's leadership and Party building, persistently enforce discipline, and
combat corruption.
OUTLOOK FOR FUTURE
Company Development Strategy
During the 14(th) Five-Year Plan period, Air China will adhere to the
development goal of "accelerating the development into a world-class aviation
transportation group with global competitiveness". The Company will focus on
four strategic directions: hub network, passenger and cargo balance, cost
leadership, and brand strategy. Efforts will be concentrated on key areas such
as enhancing safety management, optimising market layout, adjusting resource
structure, upgrading products and services, driving digital innovation, and
promoting green and low-carbon development to advance its operations.
Safety Management Reaches New Heights. The safety management system, flight
training system, aircraft maintenance system, and operational management
system will be further improved. The safety control mechanism will be more
robust, safety management efficiency will continue to rise, and responsibility
implementation will be more clearly defined. During the 14(th) Five-Year Plan
period, the Group will maintain a high level of safe operations.
Market Layout Optimization Gathers New Advantages. Adhering to serving
national strategies and major policy decisions, the Group will optimise its
base market layout under the new development paradigm of dual domestic and
international circulation, highlighting strengths and key areas to gather new
competitive advantages. The core network structure of the four-corner diamond
and four-pole clusters will be further refined, and the network synergy within
Air China family airlines will continue to deepen.
Resource Structure Adjustment Presents a New Outlook. Core resources will be
better aligned with market characteristics, establishing long-term advantages
in fleet development. The efficiency of flight and human resource allocation
will be optimised, and the alignment of maintenance and investment layouts
with core business development will be continuously strengthened.
Product and Service Upgrades Reach New Levels. The quality of products and
services will be significantly improved, with service features becoming more
prominent. An efficient and integrated standard system will be established,
ensuring smoother full-process service support and more efficient for
consistency only collaboration across business segments.
Digital Innovation Development Enters a New Stage. Scientific and
technological innovation management system will be improved, with innovation
gradually becoming a core pillar of the Group's development. The effectiveness
of innovation-driven development will be more pronounced, breakthroughs in
digital transformation will be achieved, and key progress will be made in
digital platform construction.
Green and Low-Carbon Development Demonstrates New Achievements. The energy
conservation and environmental protection management system will operate more
efficiently. Pollution and carbon reduction measures will be more effective,
pollution prevention achievements will be more significant, carbon emissions
and carbon asset management will become more professional, and participation
in social welfare activities will be more extensive.
POTENTIAL RISKS
1. Risks of External Environment
Market Fluctuation
As China's economy maintained steady growth with progress and major economic
indicators rebounded, both consumer demand and residents' income increased
steadily. In terms of the overall recovery of flights, the domestic market has
shown better performance than the international market. During the Reporting
Period, the progress of recovery in the international market was still lagging
behind under the influence of a number of factors. 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
expand the market of international routes, 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 RMB2.686 billion. The imposition of fuel
surcharges has relieved the Company's jet fuel cost pressure to a certain
extent.
Exchange Rate Fluctuation
The Group's certain assets and liabilities are denominated in US dollar.
Certain international income and expenses of the Group are 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 2024 by RMB178 million.
2. Risks of Competition
Industry competition
During the Reporting Period, as there was no significant reduction in the
number of operating entities in the market, the Company still faced relatively
huge industry competition pressure. In respect of the domestic market, as the
international market has not yet fully recovered, some wide-body aircraft were
used in the domestic market, and the imbalance between supply and demand in
the domestic market 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 strategy for
hub network, 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 experience.
Alternative competition
With the increasing station density of high-speed railway network in China,
the existing passengers flow of short- and medium-haul flights were gradually
diverted to high-speed railway, which posed challenges to the civil aviation
industry. At the same time, the mass transportation network of high-speed
railway also provided punctual and fast transportation services to more
passengers from different regions for medium- and long-haul routes of civil
aviation, while more and more passengers chose the air-rail interlink
transportation mode. 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 interlink operation
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 Percentage of
shares
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 and each Supervisor have
complied with the required standards of the Model Code and the Company's code
of conduct throughout the Reporting Period.
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 2024.
As considered and approved by the 2(nd) meeting of the seventh session of the
Board of the Company, the Company proposed not to make profit distribution for
the year of 2024.
SUBSEQUENT EVENTS
The Company completed the election of the new session of the Board on 25
February 2025. For details, please refer to the announcement of the Company
dated 25 February 2025.
ANNUAL GENERAL MEETING ("AGM") AND CLOSURE OF REGISTER OF MEMBERS
The Company proposed to hold the AGM on Wednesday, 28 May 2025. The register
of members of H Shares will be closed from Wednesday, 21 May 2025 to
Wednesday, 28 May 2025 (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 Tuesday, 20 May 2025. The holders of
H Shares whose names appear on the register of members of the Company at the
close of business on Tuesday, 20 May 2025 are entitled to attend and vote at
the AGM.
ANNUAL REPORT
The annual report for the year ended 31 December 2024 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 the readers of this announcement that the
airline operations are substantially influenced by global political and
economic developments. Accidental and unexpected incidents may have material
impacts on our operations or the industry as a whole. This 2024 annual results
announcement of the Company contains, inter alia, certain forward-looking
statements, such as forward-looking statements on the global and Chinese
economies and aviation markets. Such forward-looking statements are subject to
some uncertainties and risks.
AUDIT AND RISK CONTROL COMMITTEE (SUPERVISION COMMITTEE)
The 2024 annual results of the Company have been reviewed by the audit and
risk control committee (supervision committee) of the Board.
GLOSSARY OF TECHNICAL TERMS
Capacity Measurements
"available tonne kilometres" or "ATK(s)" the number of tonnes of capacity available for transportation multiplied by
the kilometres flown
"available seat kilometres" or "ASK(s)" the number of seats available for sale multiplied by the kilometres flown
"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
"passenger traffic" measured in RPK, unless otherwise specified
"revenue passenger kilometres" or "RPK(s)" the number of revenue passengers carried multiplied by the kilometres flown
"cargo and mail traffic" measured in RFTK, unless otherwise specified
"revenue freight tonne kilometres" or "RFTK(s)" the revenue cargo and mail load in tonnes multiplied by the kilometres flown
"revenue tonne kilometres" or "RTK(s)" the revenue load (passenger and cargo) in tonnes multiplied by the kilometres
flown
Load Factors
"overall load factor" RTK expressed as a percentage of ATK
"passenger load factor" RPK expressed as a percentage of ASK
"cargo and mail load factor" RFTK expressed as a percentage of AFTK
"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
"passenger yield"/"yield per RPK" revenues from passenger operations divided by RPKs
"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:
"Airbus" Airbus S.A.S., a company established in Toulouse, France
"Air China Cargo" Air China Cargo Co., Ltd., a non-wholly owned subsidiary of CNAHC
"Air China Inner Mongolia" Air China Inner Mongolia Co., Ltd., a non-wholly owned subsidiary of the
Company
"Air Macau" Air Macau Company Limited, a non-wholly owned subsidiary of the Company
"Ameco" Aircraft Maintenance and Engineering Corporation, a non-wholly owned
subsidiary of the Company
"Articles of Association" the articles of association of the Company, as amended from time to time
"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
"Beijing Airlines" Beijing Airlines Company Limited, a non-wholly owned subsidiary of the Company
"Board" the board of directors of the Company
"Boeing" The Boeing Company
"CAAC" Civil Aviation Administration of China
"CASs" China Accounting Standards for Business Enterprises
"Cathay Pacific" Cathay Pacific Airways Limited, an associate of the Company
"CNACG" China National Aviation Corporation (Group) Limited, a wholly-owned subsidiary
of CNAHC
"CNAHC" China National Aviation Holding Corporation Limited
"COMAC" Commercial Aircraft Corporation of China, Ltd.
"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
"CSRC" China Securities Regulatory Commission
"Dalian Airlines" Dalian Airlines Company Limited, a non-wholly owned subsidiary of the Company
"Director(s)" the director(s) of the Company
"Group" the Company and its subsidiaries
"Hong Kong" the Hong Kong Special Administrative Region of the People's Republic of China
"Hong Kong Stock Exchange" The Stock Exchange of Hong Kong Limited
"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
"IFRS Accounting Standards" IFRS Accounting Standards as issued by the International Accounting Standards
Board
"Kunming Airlines" Kunming Airlines Company Limited, a subsidiary of Shenzhen Airlines
"Listing Rules" The Rules Governing the Listing of Securities on The Stock Exchange of Hong
Kong Limited
"Model Code" the Model Code for Securities Transactions by Directors of Listed Issuers as
set out in Appendix C3 to the Listing Rules
"Reporting Period" the period from 1 January 2024 to 31 December 2024
"RMB" Renminbi, the lawful currency of the PRC
"SASAC" State-owned Assets Supervision and Administration Commission of the State
Council
"SFO" The Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
"Shandong Airlines" Shandong Airlines Co., Ltd., a non-wholly owned subsidiary of the Company
"Shandong Aviation Group Corporation" Shandong Aviation Group Company Limited, a non-wholly owned subsidiary of the
Company
"Shenzhen Airlines" Shenzhen Airlines Company Limited, a non-wholly owned subsidiary of the
Company
"Supervisor(s)" the supervisor(s) of the Company
"Supervisory Committee" the supervisory committee of the Company
"US dollars" United States dollars, the lawful currency of the United States
By Order of the Board
Air China Limited
Xiao Feng Huen Ho Yin
Joint Company Secretaries
Beijing, the PRC, 27 March 2025
As at the date of this announcement, the directors of the Company are Mr. Ma
Chongxian, Mr. Wang Mingyuan, 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 directors of the Company
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