REG - Air China Ld - 2025 ANNUAL RESULTS
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RNS Number : 4254Y Air China Ld 27 March 2026
Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong
Limited take no responsibility for the contents of this announcement, make no
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the whole or any part of the contents of this announcement.
中國國際航空股份有限公司
AIR CHINA LIMITED
(a joint stock limited company incorporated in the People's Republic of China
with limited liability)
(Stock Code: 00753)
2025 ANNUAL RESULTS
FINANCIAL HIGHLIGHTS
• During the Reporting Period, the Group recorded a revenue of
RMB171,485 million. The net loss attributable to equity shareholders of the
Company was RMB1,788 million.
• As considered and approved by the 14th meeting of the
seventh session of the Board of the Company, the Company proposed not to make
profit distribution for the year of 2025.
2025 ANNUAL RESULTS
The Board hereby announces the audited consolidated financial results of the
Group for the year ended 31 December 2025, which have been prepared in
accordance with IFRS Accounting Standards, together with the corresponding
comparative figures for the year ended 31 December 2024 as follows:
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
NOTE RMB'000 RMB'000
Revenue 3 171,484,646 166,698,880
Other income and gains 5 5,269,298 7,319,912
176,753,944 174,018,792
Operating expenses
Jet fuel costs (50,041,444) (53,720,436)
Employee compensation costs (37,047,474) (34,268,745)
Depreciation and amortisation (30,717,739) (29,102,968)
Take-off, landing and depot charges (21,967,914) (20,915,459)
Aircraft maintenance, repair and overhaul costs (14,813,651) (12,848,288)
Air catering charges (4,505,386) (4,165,874)
Aircraft and engine lease expense (764,843) (358,885)
Other lease expenses (724,421) (598,621)
Other flight operation expenses (9,158,771) (9,119,619)
Selling and marketing expenses (4,918,115) (4,695,760)
General and administrative expenses (1,922,452) (1,872,201)
Impairment loss recognised on non-current assets (96,292) (143,240)
Net impairment loss reversed under expected credit loss model 18,911 9,507
Impairment loss recognised on goodwill (483,552) -
(177,143,143) (171,800,589)
(Loss)/Profit from operations 6 (389,199) 2,218,203
Finance income 568,911 521,356
Finance costs 7 (5,553,051) (6,398,748)
Share of results of associates 3,135,745 2,610,723
Share of results of joint ventures 289,927 209,121
Exchange differences 327,561 (759,523)
Loss before taxation (1,620,106) (1,598,868)
Income tax expense 8 (1,922,270) (846,474)
Loss for the year (3,542,376) (2,445,342)
Attributable to:
- Equity shareholders of the Company (1,787,943) (232,557)
- Non-controlling interests (1,754,433) (2,212,785)
(3,542,376) (2,445,342)
Loss per share
- Basic and diluted (RMB) 9 RMB(0.11) RMB(0.01)
Attributable to:
- Equity shareholders of the Company
(1,787,943)
(232,557)
- Non-controlling interests
(1,754,433)
(2,212,785)
(3,542,376)
(2,445,342)
Loss per share
- Basic and diluted (RMB)
9
RMB(0.11)
RMB(0.01)
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
2025 2024
RMB'000 RMB'000
Loss for the year (3,542,376) (2,445,342)
Other comprehensive income for the year
Items that will not be reclassified to profit or loss:
- Change in fair value of investments in equity instruments at fair value (50,780) (79,126)
through other comprehensive income
- Remeasurement of net defined benefit liability 954 (15,130)
- Share of other comprehensive income of an associate 34,324 (31,632)
- Related tax 12,695 19,782
Items that are or may be reclassified subsequently to profit or loss:
- Change in fair value of investments in debt instruments at fair value (18,160) 27,772
through other comprehensive income
- Impairment loss reversed on investments in debt instruments at fair value 1,114 394
through other comprehensive income
- Share of other comprehensive income of associates and joint ventures (250,132) (28,272)
- Exchange differences on translation of foreign operations (567,236) 434,021
- Related tax 4,261 (7,042)
Other comprehensive income for the year (net of tax) (832,960) 320,767
Total comprehensive income for the year (4,375,336) (2,124,575)
Attributable to:
- Equity shareholders of the Company (2,576,314) 114,293
- Non-controlling interests (1,799,022) (2,238,868)
(4,375,336) (2,124,575)
Attributable to:
- Equity shareholders of the Company
(2,576,314)
114,293
- Non-controlling interests
(1,799,022)
(2,238,868)
(4,375,336)
(2,124,575)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AT 31 DECEMBER 2025
31 December 31 December
2025 2024
NOTE RMB'000 RMB'000
Non-current assets
Property, plant and equipment 127,360,692 122,180,871
Right-of-use assets 121,670,850 118,832,142
Investment properties 659,519 693,059
Intangible assets 105,612 106,563
Goodwill 3,612,180 4,095,732
Interests in associates 15,787,587 14,632,923
Interests in joint ventures 2,644,892 2,423,853
Advance payments for aircraft and flight equipment 20,185,779 24,689,737
Deposits for aircraft under leases 488,745 526,004
Equity instruments at fair value through other comprehensive income 1,924,573 1,791,273
Debt instruments at fair value through other comprehensive income 1,093,435 1,426,851
Deferred tax assets 11,367,646 12,959,766
Other non-current assets 1,305,636 704,196
308,207,146 305,062,970
Current assets
Inventories 4,809,698 4,224,992
Accounts receivable 11 3,480,157 3,670,252
Bills receivable 12,516 7,785
Prepayments, deposits and other receivables 4,866,352 5,223,257
Financial assets at fair value through profit or loss 151,633 37,559
Time deposits and restricted deposits 1,564,056 1,428,429
Cash and cash equivalents 14,295,268 21,039,472
Assets held for sale - 94,829
Other current assets 5,623,629 4,960,628
34,803,309 40,687,203
Total assets 343,010,455 345,750,173
31 December 31 December
2025 2024
NOTES RMB'000 RMB'000
Current liabilities
Air traffic liabilities (11,221,885) (11,098,740)
Accounts payable 12 (18,716,316) (18,869,784)
Bills payable (1,500,000) -
Contract liabilities (1,720,744) (1,171,172)
Dividends payable (103,367) (98,000)
Other payables and accruals (16,671,365) (13,437,502)
Advance (73,656) (36,270)
Current taxation (109,089) (130,653)
Lease liabilities (17,548,753) (17,464,654)
Interest-bearing borrowings (47,210,707) (74,544,705)
Provision for return condition checks (2,416,213) (758,575)
(117,292,095) (137,610,055)
Net current liabilities (82,488,786) (96,922,852)
Total assets less current liabilities 225,718,360 208,140,118
Non-current liabilities
Lease liabilities (61,452,171) (59,134,187)
Interest-bearing borrowings (100,607,906) (84,836,960)
Provision for return condition checks (20,149,949) (19,228,054)
Provision for early retirement benefit obligations (262) (359)
Contract liabilities (2,873,684) (2,565,188)
Defined benefit obligations (168,765) (186,700)
Deferred income (401,549) (406,943)
Deferred tax liabilities (137,992) (128,016)
Other non-current liabilities (731,358) (727,741)
(186,523,636) (167,214,148)
NET ASSETS 39,194,724 40,925,970
CAPITAL AND RESERVES
Issued capital 17,448,421 17,448,421
Reserves 25,066,365 27,679,751
Total equity attributable to equity shareholders of the Company 42,514,786 45,128,172
Non-controlling interests (3,320,062) (4,202,202)
TOTAL EQUITY 39,194,724 40,925,970
31 December
31 December
2025
2024
NOTES
RMB'000
RMB'000
Current liabilities
Air traffic liabilities
(11,221,885)
(11,098,740)
Accounts payable
12
(18,716,316)
(18,869,784)
Bills payable
(1,500,000)
-
Contract liabilities
(1,720,744)
(1,171,172)
Dividends payable
(103,367)
(98,000)
Other payables and accruals
(16,671,365)
(13,437,502)
Advance
(73,656)
(36,270)
Current taxation
(109,089)
(130,653)
Lease liabilities
(17,548,753)
(17,464,654)
Interest-bearing borrowings
(47,210,707)
(74,544,705)
Provision for return condition checks
(2,416,213)
(758,575)
(117,292,095)
(137,610,055)
Net current liabilities
(82,488,786)
(96,922,852)
Total assets less current liabilities
225,718,360
208,140,118
Non-current liabilities
Lease liabilities
(61,452,171)
(59,134,187)
Interest-bearing borrowings
(100,607,906)
(84,836,960)
Provision for return condition checks
(20,149,949)
(19,228,054)
Provision for early retirement benefit obligations
(262)
(359)
Contract liabilities
(2,873,684)
(2,565,188)
Defined benefit obligations
(168,765)
(186,700)
Deferred income
(401,549)
(406,943)
Deferred tax liabilities
(137,992)
(128,016)
Other non-current liabilities
(731,358)
(727,741)
(186,523,636)
(167,214,148)
NET ASSETS
39,194,724
40,925,970
CAPITAL AND RESERVES
Issued capital
17,448,421
17,448,421
Reserves
25,066,365
27,679,751
Total equity attributable to equity shareholders of the Company
42,514,786
45,128,172
Non-controlling interests
(3,320,062)
(4,202,202)
TOTAL EQUITY
39,194,724
40,925,970
NOTES
FOR THE YEAR ENDED 31 DECEMBER 2025
1. BASIS OF PREPARATION
As at 31 December 2025, the Group's current liabilities exceeded its current
assets by approximately RMB82,489 million. Considering the Group's expected
operating cash flows and the Company's unutilised bank facilities as at 31
December 2025, the Directors believe that the Group has sufficient financial
resources to finance its operation and to meet its financial obligations as
and when they fall due within the next twelve months from the end of the
reporting period. Accordingly, the consolidated financial statements have been
prepared on a going concern basis.
The Group's financial statements have been prepared in accordance with IFRS
Accounting Standards as issued by the International Accounting Standards Board
("IASB") and the disclosure requirements of the Hong Kong Companies Ordinance.
These financial statements also comply with the applicable disclosure
provisions of the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited.
The IASB has issued certain new or amended IFRS Accounting Standards that are
first effective or available for early adoption for the current accounting
period of the Group. Note 2 provides information on any changes in accounting
policies resulting from initial application of these developments to the
extent that they are relevant to the Group for the current accounting period
reflected in these financial statements.
2. CHANGES IN ACCOUNTING POLICIES
The Group has applied amendments to IAS 21, The effects of changes in foreign
exchange rates - Lack of exchangeability issued by the IASB to these financial
statements for the current accounting period. The amendments do not have a
material impact on these financial statements as the Group has not entered
into any foreign currency transactions in which the foreign currency is not
exchangeable into another currency.
3. REVENUE
Disaggregation of revenue
2025 2024
RMB'000 RMB'000
Revenue from contracts with customers
Airline operations
Passenger 154,855,779 151,788,672
Cargo and mail 7,778,380 7,413,855
Others 2,290,763 1,876,406
164,924,922 161,078,933
Other operations
Aircraft engineering income 6,012,036 5,179,776
Others 152,360 132,016
6,164,396 5,311,792
Sub-total 171,089,318 166,390,725
Rental income (included in revenue of airline operations segment) 395,328 308,155
Total revenue 171,484,646 166,698,880
Performance obligations for contracts with customers
Passenger revenue is recognised when transportation services are provided.
Besides, the Group recognises the expected breakage amount as passenger
revenue in proportion to the pattern of rights exercised by the passenger (or
flown revenue) based on historical experience. Ticket sales for transportation
not yet provided are recorded in air traffic liabilities.
The Group operates frequent-flyer programme and provides free services or
products to the customers according to the miles they earn. The Group
allocates the transaction price to each performance obligation on a relative
stand-alone selling price basis. The amount allocated to the miles earned by
the frequent-flyer programme members is recorded in contract liabilities and
deferred until the miles are redeemed when the Group fulfils its obligations
to supply services or products or when the miles expire. During the year, the
Group recognised revenue of RMB1,166 million (2024: RMB1,351 million) which
was included in contract liabilities in relation to frequent-flyer programme
at the beginning of the year.
Cargo and mail revenue is recognised when contract services are provided.
Revenue from other airline-related services is recognised when the related
performance obligations are satisfied.
Sale of goods is recognised when control of the goods has transferred to the
customer, being at the point the goods are delivered to the customer.
Transaction price allocated to the remaining performance obligation for
contracts with customers
The customer loyalty points in frequent-flyer programme have a three-year term
and these points can be redeemed anytime at customers' discretion during the
valid period.
4. SEGMENT INFORMATION
The Group's businesses are structured and managed, according to the nature of
its operations and the services it provides. The Group has the following
reportable operating segments:
(a) the "airline operations" segment which mainly comprises the
provision of air passenger and air cargo services; and
(b) the "other operations" segment which comprises the provision of
aircraft engineering and other airline-related services.
Inter-segment sales and transfers are transacted with reference to the then
prevailing market prices.
The Company's chief operating decision maker monitors the results, assets and
liabilities of the Group based on the financial results prepared in accordance
with the Accounting Standards for Business Enterprises issued by the Ministry
of Finance of the PRC ("CASs"). As such, the segment information is presented
in accordance with CAS with reconciliation to financial information presented
in IFRS Accounting Standards.
Year ended 31 December 2025
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Revenue
Sales to external customers 165,320,250 6,164,396 - 171,484,646
Inter-segment sales 273,944 9,582,483 (9,856,427) -
Segment revenue under CASs and IFRS Accounting Standards 165,594,194 15,746,879 (9,856,427) 171,484,646
Segment results before taxation (2,484,013) 926,783 (39,477) (1,596,707)
(Loss)/profit before taxation for reportable segments under CASs
Effect of differences between IFRS Accounting Standards and CASs (23,399)
Loss before taxation for the year under IFRS Accounting Standards (1,620,106)
Effect of differences between IFRS Accounting Standards and CASs
(23,399)
Loss before taxation for the year under IFRS Accounting Standards
(1,620,106)
Year ended 31 December 2024
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Revenue
Sales to external customers 161,387,088 5,311,792 - 166,698,880
Inter-segment sales 229,651 9,268,619 (9,498,270) -
Segment revenue under CASs and IFRS Accounting Standards 161,616,739 14,580,411 (9,498,270) 166,698,880
Segment results before taxation (2,239,127) 795,124 (161,195) (1,605,198)
(Loss)/profit before taxation for reportable segments under CASs
Effect of differences between IFRS Accounting Standards and CASs
6,330
Loss before taxation for the year under IFRS Accounting Standards
(1,598,868)
Segment results before taxation
(Loss)/profit before taxation for reportable segments under CASs
(2,239,127)
795,124
(161,195)
(1,605,198)
Effect of differences between IFRS Accounting Standards and CASs
6,330
Loss before taxation for the year under IFRS Accounting Standards
(1,598,868)
As at 31 December 2025 and 2024
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Segment assets
Segment assets as at 31 December 2025 under CASs 331,428,979 34,473,118 (22,854,853) 343,047,244
Effect of differences between IFRS Accounting Standards and CASs (36,789)
Total assets as at 31 December 2025 under IFRS Accounting Standards 343,010,455
Segment assets as at 31 December 2024 under CASs 335,387,462 35,068,041 (24,686,091) 345,769,412
Effect of differences between IFRS Accounting Standards and CASs (19,239)
Total assets as at 31 December 2024 under IFRS Accounting Standards 345,750,173
Airline operations Other operations Elimination Total
RMB'000 RMB'000 RMB'000 RMB'000
Segment liabilities
Segment liabilities under CASs and IFRS Accounting Standards
As at 31 December 2025 300,925,989 25,209,071 (22,319,329) 303,815,731
As at 31 December 2024 301,829,477 27,135,795 (24,141,069) 304,824,203
Segment assets as at 31 December 2024 under CASs
335,387,462
35,068,041
(24,686,091)
345,769,412
Effect of differences between IFRS Accounting Standards and CASs
(19,239)
Total assets as at 31 December 2024 under IFRS Accounting Standards
345,750,173
Airline operations
Other operations
Elimination
Total
RMB'000
RMB'000
RMB'000
RMB'000
Segment liabilities
Segment liabilities under CASs and IFRS Accounting Standards
As at 31 December 2025
300,925,989
25,209,071
(22,319,329)
303,815,731
As at 31 December 2024
301,829,477
27,135,795
(24,141,069)
304,824,203
Year ended 31 December 2025
Airline operations Other operations Elimination Total Effect of differences between IFRS Accounting Standards and CASs Amounts under IFRS Accounting Standards
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Other segment information
Share of profit of associates and joint ventures 3,038,666 387,006 - 3,425,672 - 3,425,672
Net impairment losses (recognised)/ reversed on financial assets 2,458 (38,972) 55,425 18,911 - 18,911
Net impairment losses (recognised)/ reversed on non-financial assets (591,487) 5,407 - (586,080) - (586,080)
Depreciation and amortisation (30,455,837) (437,594) 170,703 (30,722,728) 4,989 (30,717,739)
Income tax expense (1,702,387) (227,097) 1,365 (1,928,119) 5,849 (1,922,270)
Interests in associates and joint ventures 15,393,010 2,995,984 (96,434) 18,292,560 139,919 18,432,479
Additions to non-current assets 38,170,770 1,002,365 (216,742) 38,956,393 - 38,956,393
Year ended 31 December 2024
Airline operations Other operations Elimination Total Effect of Differences between IFRS Accounting Standards and CASs Amounts under IFRS Accounting Standards
RMB'000 RMB'000 RMB'000 RMB'000 RMB'000 RMB'000
Other segment information
Share of profit of associates and joint ventures 2,535,142 284,702 - 2,819,844 - 2,819,844
Net impairment losses (recognised)/ reversed on financial assets 11,792 (27,985) 25,700 9,507 - 9,507
Impairment losses recognised on non-financial assets (145,588) (10,412) - (156,000) - (156,000)
Depreciation and amortisation (28,827,562) (448,312) 166,617 (29,109,257) 6,289 (29,102,968)
Income tax expense (656,490) (211,035) 22,633 (844,892) (1,582) (846,474)
Interests in associates and joint ventures 14,310,136 2,693,530 (86,809) 16,916,857 139,919 17,056,776
Additions to non-current assets 34,264,696 401,343 (442,547) 34,223,492 - 34,223,492
Geographical information
The following table presents the Group's consolidated revenue to external
customers by geographical location for the years ended 31 December 2025 and
2024, respectively:
2025 2024
RMB'000 RMB'000
Chinese Mainland 117,457,528 118,491,369
Hong Kong SAR, Macau SAR and Taiwan, China 5,373,638 5,118,889
International 48,653,480 43,088,622
171,484,646 166,698,880
In determining the Group's geographical information, revenue is based on the
origin and destination of each flight. Assets, which principally consist of
aircraft and ground equipment, supporting the Group's worldwide transportation
network, are mainly registered/located in Chinese Mainland. According to the
business demand, the Group flexibly allocates aircraft to match the need of
the route network. An analysis of the assets of the Group by geographical
distribution has therefore not been presented.
There was no individual customer that contributed 10% or more of the Group's
revenue during the year ended 31 December 2025 (2024: Nil).
5. OTHER INCOME AND GAINS
2025 2024
RMB'000 RMB'000
Co-operation routes income and subsidy income 4,518,005 4,295,552
Dividend income 16,578 36,740
Gains/(losses) on disposal of:
- Property, plant and equipment and right-of-use assets 131,431 1,029,912
- Asset held for sale 4,325 (17,527)
Change in fair value of financial assets at FVTPL 2,413 54
Others 596,546 1,975,181
5,269,298 7,319,912
6. (LOSS)/PROFIT FROM OPERATIONS
The Group's (loss)/profit from operations is arrived at after charging:
2025 2024
RMB'000 RMB'000
Depreciation of property, plant and equipment 14,910,278 13,439,898
Depreciation of right-of-use assets 15,773,927 15,629,518
Depreciation of investment properties 33,531 33,535
Amortisation of intangible assets 3 17
Total depreciation and amortisation 30,717,739 29,102,968
Impairment losses recognised on property, plant and equipment 96,292 143,240
Impairment losses recognised on goodwill 483,552 -
Inventories provision 6,236 12,760
Auditors' remuneration:
- Audit related services 18,333 21,847
- Other services 75 1,540
Impairment losses recognised on property, plant and equipment
96,292
143,240
Impairment losses recognised on goodwill
483,552
-
Inventories provision
6,236
12,760
Auditors' remuneration:
- Audit related services
18,333
21,847
- Other services
75
1,540
7. FINANCE COSTS
2025 2024
RMB'000 RMB'000
Interest on interest-bearing borrowings 3,711,041 4,025,619
Interest on lease liabilities 2,144,357 2,683,519
Imputed interest expenses on defined benefit obligations 3,241 5,147
5,858,639 6,714,285
Less: Interest capitalised (Note) (305,588) (315,537)
5,553,051 6,398,748
Note: The interest capitalisation rates ranged from 1.95% to 2.80% per annum
(2024: 2.40% to 4.00% per annum) relating to the costs of related borrowings
during the year.
8. INCOME TAX EXPENSE
2025 2024
RMB'000 RMB'000
Current income tax
- Provision for the year 293,042 247,162
- Under provision in respect of prior years 1,496 879
Deferred tax 1,627,732 598,433
1,922,270 846,474
Under the Law of the PRC on Enterprise Income Tax (the "EIT Law") and
Implementation Regulation of the EIT Law, except for certain branches and
subsidiaries of the Group which are taxed at a preferential rate of 15% (2024:
15%), all group companies located in Chinese Mainland are subject to an income
tax rate of 25% during the year (2024: 25%). Subsidiaries in Hong Kong SAR,
China and Macau SAR are taxed at profits tax rate of 16.5% (2024: 16.5%) and
12% (2024: 12%), respectively.
The taxation for the year can be reconciled to the loss before taxation per
consolidated statement of profit or loss as follows:
2025 2024
RMB'000 RMB'000
Loss before taxation (1,620,106) (1,598,868)
Tax at the applicable tax rate of 25% (405,026) (399,717)
Preferential tax rates on income of group entities 76,543 111,747
Tax effect of share of results of associates and joint ventures (856,418) (713,367)
Tax effect of non-deductible expenses 277,265 190,830
Tax effect of non-taxable income (18,696) (16,259)
Tax effect of deductible temporary differences and tax losses not recognised 2,847,106 1,948,635
Under provision in respect of prior years 1,496 879
Others - (276,274)
Income tax expense 1,922,270 846,474
Tax at the applicable tax rate of 25%
(405,026)
(399,717)
Preferential tax rates on income of group entities
76,543
111,747
Tax effect of share of results of associates and joint ventures
(856,418)
(713,367)
Tax effect of non-deductible expenses
277,265
190,830
Tax effect of non-taxable income
(18,696)
(16,259)
Tax effect of deductible temporary differences and tax losses not recognised
2,847,106
1,948,635
Under provision in respect of prior years
1,496
879
Others
-
(276,274)
Income tax expense
1,922,270
846,474
9. LOSS PER SHARE
The calculation of the basic and diluted loss per share attributable to equity
shareholders of the Company is based on the following data:
2025 2024
RMB'000 RMB'000
Loss
Loss for the purpose of basic and diluted loss per share (1,787,943) (232,557)
2025 2024
'000 '000
Number of shares
Issued ordinary shares at 1 January 17,448,421 16,200,793
Effect of reciprocal shareholding (779,089) (789,854)
Effect of share issued in 2024 - 453,621
Weighted-average number of ordinary shares for the purpose of basic and 16,669,332 15,864,560
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 reciprocal shareholding with Cathay Pacific.
As at 31 December 2025, the potential ordinary shares (convertible bonds) of
the Group's associate, Cathay Pacific, assuming their conversion into ordinary
shares, would reduce the loss per share and have an anti-dilutive effect. As
potential ordinary shares that are anti-dilutive are excluded from the
calculation of diluted loss per share, the basic and diluted loss per share of
the Company are the same in both years.
10. DIVIDENDS
No dividend was paid or proposed for ordinary shareholders of the Company
during the years ended 31 December 2024 and 2025, nor has any dividend been
proposed since the end of both reporting periods.
11. ACCOUNTS RECEIVABLE
2025 2024
RMB'000 RMB'000
Accounts receivable 3,646,894 3,834,983
Less: Allowance for expected credit losses (166,737) (164,731)
3,480,157 3,670,252
The ageing analysis of the accounts receivable as at the end of the reporting
period, based on the transaction date, net of allowance for expected credit
losses, was as follows:
2025 2024
RMB'000 RMB'000
Within 30 days 2,877,838 2,963,962
31 to 60 days 101,849 147,934
61 to 90 days 245,924 139,120
Over 90 days 254,546 419,236
3,480,157 3,670,252
12. ACCOUNTS PAYABLE
The ageing analysis of the accounts payable, based on the transaction date, as
at the end of the reporting period was as follows:
2025 2024
RMB'000 RMB'000
Within 30 days 7,839,031 8,354,764
31 to 60 days 1,968,175 2,009,755
61 to 90 days 4,171,265 4,806,725
Over 90 days 4,737,845 3,698,540
18,716,316 18,869,784
The accounts payable are non-interest-bearing and have normal credit terms up
to 90 days.
CONSOLIDATED BALANCE SHEET
At 31 DECEMBER 2025
(Prepared under the CASs)
31 December 31 December
ASSETS 2025 2024
RMB'000 RMB'000
Current Assets
Cash and bank 15,859,324 22,467,901
Financial assets at fair value through profit or loss 151,633 37,559
Bills receivable 12,516 7,785
Accounts receivable 3,480,157 3,670,252
Prepayments 590,827 462,245
Other receivables 4,275,525 4,761,012
Inventories 4,809,698 4,224,992
Assets held for sale - 94,829
Other current assets 5,623,629 4,960,628
Total current assets 34,803,309 40,687,203
Non-current assets
Debt instruments at fair value through other comprehensive income 1,093,435 1,426,851
Long-term receivables 735,200 910,872
Long-term equity investments 18,292,560 16,916,857
Equity instruments at fair value through other comprehensive income 1,926,616 1,793,316
Investment properties 291,001 305,917
Fixed assets 112,844,370 109,655,401
Right-of-use assets 116,551,531 114,042,465
Construction in progress 34,331,014 36,767,279
Intangible assets 6,194,476 5,937,851
Goodwill 3,614,390 4,097,942
Long-term deferred expenses 325,628 314,274
Deferred tax assets 11,310,161 12,908,130
Other non-current assets 733,553 5,054
Total Non-current assets 308,243,935 305,082,209
Total assets 343,047,244 345,769,412
31 December 31 December
LIABILITIES AND SHAREHOLDERS' EQUITY 2025 2024
RMB'000 RMB'000
Current liabilities
Short-term loans 6,560,932 16,876,294
Short-term bonds payable 11,051,420 3,010,847
Bills payable 1,500,000 -
Accounts payable 20,856,695 19,538,712
Air traffic liabilities 11,221,885 11,098,740
Advance 73,656 36,270
Contract liabilities 1,720,744 1,171,172
Employee compensations payable 4,178,271 3,441,130
Taxes payable 683,576 655,407
Other payables 13,420,424 11,075,198
Non-current liabilities repayable within one year 46,024,492 70,706,285
Total Current Liabilities 117,292,095 137,610,055
Non-current liabilities
Long-term loans 60,858,057 77,836,960
Corporate bonds 32,000,000 6,000,000
Long-term payables 24,293,835 16,785,219
Lease liabilities 61,452,171 59,134,187
Defined benefit obligations 168,765 186,700
Accrued liabilities 4,337,583 4,170,935
Deferred income 401,549 406,943
Deferred tax liabilities 137,992 128,016
Other non-current liabilities 2,873,684 2,565,188
Total non-current liabilities 186,523,636 167,214,148
Total liabilities 303,815,731 304,824,203
Shareholders' equity
Issued capital 17,448,421 17,448,421
Capital reserve 46,113,911 46,150,983
Other comprehensive income (265,919) 550,334
Reserve funds 11,564,287 11,564,287
Accumulated losses (32,486,631) (30,744,120)
General reserve 177,506 177,506
Equity attributable to shareholders of the Company 42,551,575 45,147,411
Non-controlling interests (3,320,062) (4,202,202)
Total shareholders' equity 39,231,513 40,945,209
Total liabilities and shareholders' equity 343,047,244 345,769,412
Shareholders' equity
Issued capital
17,448,421
17,448,421
Capital reserve
46,113,911
46,150,983
Other comprehensive income
(265,919)
550,334
Reserve funds
11,564,287
11,564,287
Accumulated losses
(32,486,631)
(30,744,120)
General reserve
177,506
177,506
Equity attributable to shareholders of the Company
42,551,575
45,147,411
Non-controlling interests
(3,320,062)
(4,202,202)
Total shareholders' equity
39,231,513
40,945,209
Total liabilities and shareholders' equity
343,047,244
345,769,412
EFFECTS OF DIFFERENCES BETWEEN IFRS ACCOUNTING STANDARDS AND CASs
The effects of differences between the consolidated financial statements of
the Group prepared under IFRS Accounting Standards and CASs are as follows:
2025 2024
RMB'000 RMB'000
Net loss attributable to shareholders of the Company under CASs (1,770,393) (237,305)
Deferred taxation 5,849 (1,582)
Differences in value of fixed assets and certain non-current assets (23,399) 10,628
Net loss attributable to shareholders of the Company under IFRS Accounting (1,787,943) (232,557)
Standards
31 December 31 December
2025 2024
RMB'000 RMB'000
Equity attributable to shareholders of the Company under CASs 42,551,575 45,147,411
Deferred taxation 57,485 51,636
Differences in value of fixed assets and certain non-current assets (234,193) (210,794)
Unrealised profit on share transactions with an associate 139,919 139,919
Equity attributable to shareholders of the Company under IFRS Accounting 42,514,786 45,128,172
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/ (decrease)
year year
Capacity
ASK (million) 367,641.22 356,103.62 3.24%
International 107,065.14 95,626.32 11.96%
Chinese Mainland 250,315.08 250,051.04 0.11%
Hong Kong SAR, Macau SAR and Taiwan, China 10,261.00 10,426.25 (1.58%)
AFTK (million) 12,934.82 12,629.76 2.42%
International 6,275.77 5,593.32 12.20%
Chinese Mainland 6,415.24 6,764.65 (5.17%)
Hong Kong SAR, Macau SAR and Taiwan, China 243.81 271.79 (10.29%)
ATK (million) 46,060.88 44,726.10 2.98%
Traffic
RPK (million) 301,015.56 284,349.95 5.86%
International 83,742.89 72,918.97 14.84%
Chinese Mainland 209,605.32 203,880.63 2.81%
Hong Kong SAR, Macau SAR and Taiwan, China 7,667.35 7,550.35 1.55%
RFTK (million) 5,051.12 4,732.69 6.73%
International 3,302.01 3,001.96 10.00%
Chinese Mainland 1,684.85 1,663.75 1.27%
Hong Kong SAR, Macau SAR and Taiwan, China 64.26 66.98 (4.06%)
Passengers carried (thousand) 160,596.53 155,315.51 3.40%
International 18,817.99 16,317.71 15.31%
Chinese Mainland 136,880.24 134,256.06 1.95%
Hong Kong SAR, Macau SAR and Taiwan, China 4,898.30 4,741.74 3.30%
Cargo and mail carried (tonnes) 1,537,855.39 1,480,085.34 3.90%
Kilometres flown (million) 1,909.34 1,856.98 2.82%
Block hours (thousand) 3,013.26 2,950.89 2.11%
Current Previous Increase/ (decrease)
year year
Number of flights 1,037,949 1,024,492 1.31%
International 116,299 102,399 13.57%
Chinese Mainland 885,006 886,944 (0.22%)
Hong Kong SAR, Macau SAR and Taiwan, China 36,644 35,149 4.25%
RTK (million) 31,568.50 29,743.08 6.14%
Load factor
Passenger load factor (RPK/ASK) 81.88% 79.85% 2.03 ppt
International 78.22% 76.25% 1.96 ppt
Chinese Mainland 83.74% 81.54% 2.20 ppt
Hong Kong SAR, Macau SAR and Taiwan, China 74.72% 72.42% 2.31 ppt
Cargo and mail load factor (RFTK/AFTK) 39.05% 37.47% 1.58 ppt
International 52.62% 53.67% (1.06 ppt)
Chinese Mainland 26.26% 24.59% 1.67 ppt
Hong Kong SAR, Macau SAR and Taiwan, China 26.36% 24.64% 1.71 ppt
Overall load factor (RTK/ATK) 68.54% 66.50% 2.04 ppt
Utilisation
Daily utilisation of aircraft 8.89 8.90 (0.02 hours)
(block hours per day per aircraft)
Yield
Yield per RPK (RMB) 0.5144 0.5338 (3.63%)
International 0.5095 0.5127 (0.62%)
Chinese Mainland 0.5107 0.5371 (4.92%)
Hong Kong SAR, Macau SAR and Taiwan, China 0.6718 0.6488 3.54%
Yield per RFTK (RMB) 1.5399 1.5665 (1.70%)
International 1.8124 1.8999 (4.60%)
Chinese Mainland 0.9324 0.8959 4.08%
Hong Kong SAR, Macau SAR and Taiwan, China 3.4680 3.2855 5.56%
Unit cost
Operating expenses per ASK (RMB) 0.4818 0.4824 (0.12%)
Operating expenses per ATK (RMB) 3.8458 3.8412 0.12%
DEVELOPMENT OF FLEET
During the year of 2025, the Group introduced a total of 45 aircraft,
including 25 A320 series aircraft, 12 B737 series aircraft, six C919 aircraft
and two C909 aircraft, and phased out a total of 11 aircraft, including four
A330 series aircraft, one B747 series aircraft, five A320 series aircraft and
one business jet.
As at the end of the Reporting Period, the Group had a total of 964 aircraft
with an average age of 10.36 years, of which the Company operated a fleet of
533 aircraft in total, with an average age of 9.85 years. The Company
introduced 37 aircraft and phased out 8 aircraft.
Details of the fleet of the Group are set out in the table below:
31 December 2025
Finance leases Operating Average age
Sub-total Self-owned leases (year)
Airbus 449 195 136 118 10.07
A320 369 165 112 92 10.18
A330 50 20 4 26 12.50
A350 30 10 20 - 4.63
Boeing 468 193 101 174 11.40
B737 417 157 94 166 11.39
B747 9 7 2 - 14.75
B777 28 19 3 6 11.71
B787 14 10 2 2 8.86
COMAC 44 29 15 - 2.25
C909 35 23 12 - 2.70
C919 9 6 3 - 0.53
Business jets 3 1 - 2 9.81
Total 964 418 252 294 10.36
Introduction Plan Phase-out Plan
2026 2027 2028 2026 2027 2028
Airbus 18 30 20 15 7 8
A320 18 30 20 14 7 8
A330 - - - 1 - -
Boeing 12 21 35 5 5 3
B737 10 12 31 5 5 3
B787 2 9 4 - - -
COMAC 10 10 15 - - -
C919 10 10 15 - - -
Total 40 61 70 20 12 11
Note: Please refer to the actual operation for the introduction and phase-out
of the Group's fleet in the future.
2025 REVIEW
The year 2025 marked the conclusion of the 14th Five-Year Plan and also served
as a year of planning and laying the groundwork for the 15th Five-Year Plan.
Throughout the year, guided by Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, the Group thoroughly implemented the guiding
principles of the 20th National Congress of the Communist Party of China (CPC)
and the plenary sessions of the 20th CPC Central Committee, as well as the
work deployments of the CPC Central Committee and the State Council.
Steadfastly fulfilling the responsibilities and mission of a national flag
carrier, the Group has taken a coordinated approach to its core tasks of
ensuring operational safety, enhancing operating performance and passenger
services, and strengthening Party building. Positive outcomes have been
secured in all aspects, bringing the 14th Five-Year Plan to a successful
conclusion.
Ensuring safety first for stable and secure operations. The Group has always
prioritized safety as its primary political mission and top priority, taking
concrete actions to ensure "Two Absolute Safeties (兩個絕對安全)". The
Group advanced the three-year action plan for fundamental improvements,
deepened the development of its safety operation system, and steadily improved
the quality and efficiency of its safety management. By closely monitoring the
complex operational environment and key links in production organization, the
Group focused on strengthening its risk identification and control
capabilities, with its risk prevention and control system continuously
upgraded. Work safety responsibilities were enforced for all employees, a
long-term mechanism for improving work practices was established, and the
safety foundation was continuously strengthened. In 2025, the Group achieved
3.01 million safe flight hours, while successfully accomplishing critical
missions such as the Shanghai Cooperation Organization Summit, the Asian
Winter Games, the World Games and earthquake relief and rescue in Myanmar,
staying committed to fulfilling its responsibilities as a central enterprise.
Seeking progress while maintaining stability, with operating quality
continuing to improve. The Group further advanced initiatives to improve
quality and enhance efficiency, and its principal business operations
continued to improve. The Group steadfastly advanced its hub network strategy
and made dedicated efforts to increase the scale of effective capacity
deployment, achieving 367,600 million available seat kilometres for the year,
representing a year-on-year increase of 3.24%. Actively responding to
"involution-style" competition, the Group dynamically monitored market trends
and balanced capacity and pricing in a scientific manner, thereby consistently
consolidating its strengths in core markets and on main routes. The Group
upgraded its value-added aviation products to continuously increase the value
of such products, achieving a year-on-year increase of over 40% in sales
revenue. The integration of passenger and cargo operations was further
deepened, with capacity dynamically aligned with cargo transportation demand,
resulting in a year-on-year increase of 4.92% in bellyhold operating revenue.
The Group comprehensively upgraded its cost control system, focusing on key
areas such as jet fuel, take-off and landing and aircraft, striving to enhance
the precision of cost management.
Adhering to a people-oriented approach, with service quality and efficiency
continuing to improve. With a focus on its goal of serving passengers with
credibility, convenience, comfort and choice, the Group expanded the supply of
high-quality aviation services to enhance passengers' sense of fulfillment and
satisfaction. The Group promoted a comprehensive transformation towards a
"customer-centric" service model, established a database of comprehensive
evaluation indicators covering the entire passenger service process and
continuously improved the service system. An "aviation+" ecosystem was
developed, with vigorous promotion of through-check-in services and air-rail
intermodal products, continuously expanding the value of aviation services.
Flight regularity was enhanced and post-irregular flight handling services was
optimized to improve the seamlessness of the entire service process. In 2025,
the number of members of the "PhoenixMiles" frequent flyer programme exceeded
100 million with passenger satisfaction reaching 88.1 points.
Fulfilling the responsibilities of a central enterprise and serving the
Nation's Priorities. The Group has been fulfilling its mission and
responsibilities of serving national development, and stimulating endogenous
momentum through comprehensively deepening reform. The Group fully supported
high-standard opening-up with 12 international routes opened or resumed in
2025, expanding the coverage of the Group's route network to six continents.
Actively contributing to the Belt and Road initiative, the Company is
operating 74 routes covering 32 countries under the Belt and Road Initiative.
The Group fully supported the development of China's domestically produced
civil aircraft. A total of 35 C909 and nine C919 aircraft were introduced and
commenced safe operation while engaging in the research and development of the
C929 aircraft. The Group actively fulfilled its social responsibilities and
integrated targeted assistance work into its entire industrial chain,
receiving the highest grade of "Good" in the Evaluation of Targeted Poverty
Alleviation Performance Among Centrally-administered State-owned Units for
eight consecutive years. The Group actively expanded its international
influence, participating deeply in the governance of international
organizations such as Star Alliance and IATA, expanding in-depth cooperation
with the international aviation industry and promoting the inclusion of
Renminbi as a settlement currency in IATA clearing.
Strengthening Party building and leadership to enhance corporate governance
effectiveness. The Group adheres to the principle of "Two Consistencies
(兩個一以貫之)", continuously improving the integration of Party
leadership into its corporate governance. The Group promoted the deep
integration of Party building with production and operation, and hosted a
series of themed publicity events titled "Air China C919 Retraces the Glorious
Northward Flight of the 'Two Airlines Uprising'"
(重飛'兩航起義'北飛光輝航程), effectively enhancing the power of
ideological guidance. The Group strictly implemented the "First Agenda
(第一議題)" system, consolidated and deepened the achievements of
rectification following the central inspections, thoroughly implemented the
spirit of the central Party leadership's eight-point decision on improving
conduct, advanced the normalization and long-term effectiveness of work style
development, and took coordinated steps to ensure that officials do not have
the audacity, opportunity, or desire to become corrupt. The Group continuously
fostered a clean and upright political ecosystem, safeguarding the building of
a world-class enterprise.
The year 2026 marks the opening year of the 15th Five-Year Plan and a critical
juncture for building on the past and paving the way for the future. The Group
will thoroughly pursue initiatives to "improve quality, enhance efficiency and
optimize structure", accelerating the transformation from a quantitative
expansion model to a quality- and efficiency-oriented model, to achieve
effective improvement in quality and reasonable growth in quantity, and
effectively strengthen its core functions and core competitiveness. By
upholding fundamental principles and breaking new ground, working diligently
and delivering solid results, the Group will stride forward in its journey of
building a world-class enterprise with courage and determination, making new
and greater contributions to Chinese modernization.
BUSINESS OVERVIEW
Safe Operation
In 2025, the Group firmly upheld the base line of safe development and
maintained stable and secure operations. The Group refined the four major
systems of "safety management, flight training, aircraft maintenance, and
production and operations" as well as the accountability system for work
safety for all employees, leveraging technology to enhance its safe
transportation capacity. The Group strengthened process control and risk
prevention, ensured solid flight operation support during critical periods
such as the thunderstorm season and winter operations, intensified hidden
hazard identification, supervision and inspection, and paid close attention to
the health of personnel in key positions. The Group made solid progress in the
three-year action plan for fundamental improvements in operation safety,
improved emergency response capabilities for lithium battery incidents in the
fleet, and developed emergency measures to address contingencies such as
overseas terrorist attacks and riots. The Group provided high-quality support
for C919 aircraft operations, ensuring dynamic alignment between flight
operations and support capabilities. The Group optimized resource allocation
and improved safety efficiency to steadily implement the integrated operation
of Air China Inner Mongolia.
During the Reporting Period, the Group recorded 3.01 million safe flight
hours, and successfully completed the themed event of "Air China C919 Retraces
the Glorious Northward Flight of the 'Two Airlines Uprising'" and fulfilled
major transportation support missions of special charter flights, including
the Shanghai Cooperation Organization Summit and evacuation and rescue
missions for overseas Chinese, thereby consistently maintaining an overall
stable and safe operational environment.
Enhancing Operating Performance
In 2025, the Group seized market opportunities and pursued the overarching
goal of enhancing operating performance while ensuring safe operations. The
Group improved fleet efficiency through meticulous production organization,
stabilized yield quality by strengthening capacity and pricing management, and
advanced cost reduction and expenditure control through rigorous cost
controls. As a result, the Group's operational performance continued to
improve, achieving a year-on-year increase in revenue by RMB 4.786 billion.
Focusing on the annual strategic production and operational targets, the Group
optimized production organization to ensure effective capacity deployment.
Guided by the principle of revenue maximization, the Group refined yield
management while simultaneously enhancing marketing organization capabilities.
The Group strengthened product innovation, expanded ancillary revenue streams
and achieved significant results in enhancing overall operating performance.
The Group improved aircraft utilization, actively exploring the international
market and continuously refining the Group's capacity deployment structure.
The Group deepened capacity synergy among Air China family carriers to
strengthen competitiveness of its main routes. In response to market changes,
the Group continuously enriched its premium cabin products, explored
incremental passenger traffic from connecting flights, upgraded the yield
management of Air China family carriers, and implemented refined management
and control to balance capacity and pricing. The Group refined marketing
products to actively generate revenue and increase profit. The Group deepened
platform partnerships to proactively innovate products tailored to
characteristics of its customer groups. The Group advanced the transformation
of the "PhoenixMiles" frequent flyer program, continuously optimizing the
benefits of frequent flyers. The Group comprehensively optimized mobile
service systems to enhance sales and service capabilities of direct sales
channels. The Group expanded ancillary revenue streams by optimizing flagship
products, strengthening development of new products, and continuously
promoting the synergistic development of ancillary businesses among Air China
family carriers.
The Group strictly controlled costs in line with the requirements of
"intensification, coordination and refinement". The Group optimised the
matching of aircraft types with routes and market demand to manage operating
costs, improved resource utilization efficiency and refined support cost
management. The Group strengthened fund coordination, optimised the debt
structure and reduced financial expenses. The Group increased labor
productivity at all levels while appropriately managing labor cost, thereby
effectively expanding profitability potential.
Products and Services
In 2025, focusing on passenger needs, the Group continuously improved its
service standards and quality, cultivated high-quality service and product
brands and accelerated service digitalization and upgrading, thereby providing
passengers with a better aviation service experience and contributing to the
high-quality development of civil aviation services.
The Group focused on addressing passengers' concerns by optimizing key service
standards, particularly for services for passengers requiring special
assistance and service compensation and reimbursement, thereby enhancing the
overall passenger experience. To strengthen its service and product brand, the
Group newly launched the "Zichen (紫宸)" premium lounge, with a series of
"Smart Enjoyment (智享)" services introduced in the "Zixuan (紫軒)" and
"Zichen (紫宸)" branded lounges. Brand awareness was further strengthened
through themed activities during holidays such as the Mid-Autumn Festival and
the National Day, as well as "Phoenix Pavilion (鳳庭薈)" cultural
exhibitions. The integration and upgrade of express route products were
completed, which now covered 13 routes. The "Air China Express Routes" service
brand was selected among the second batch of creative achievements under the
SASAC's Central Enterprise Brand Leadership Action. Cross-sector integration
was strengthened, creating the in-flight customized coffee product "Coffee
On-the-Go (隨行咖啡棒)", launching a new version of the safety
instruction video, and producing and launching a new boarding/disembarkation
music titled "Beyond the Horizon (遠方的遠方)". Through partnerships with
well-known automobile companies, the Group achieved reciprocal cross-sector
benefits. Collaboration was also undertaken with renowned cultural tourism,
sports and art IPs to create themed products, catering to the diverse needs of
passengers. Service system platforms, such as the end-to-end passenger service
information notification system and the global ground flight support platform,
were fully deployed. The in-flight catering reservation service was made
available to passengers on all domestic routes with catering services. The
iterative upgrading of basic service management systems such as the passenger
service compensation system and the service knowledge database system
continued. These initiatives continued to enhance the Group's digital service
capabilities.
Digital Transformation and Technological Innovation
In 2025, the Group accelerated its digital transformation, which is
value-oriented and customer-centric, thereby injecting strong and new digital
and intelligent momentum into high-quality development. In terms of safe
operation, the Group accelerated the global deployment of the ground
operations support platform, achieving full coverage across all branches and
114 global staffed stations. Through the rollout of this advanced platform,
the Group rapidly enhanced the overall standard of its ground support
services. The smart flight-digital task sheet system was launched, creating an
integrated digital application for flight crews. This "people-first, empowered
by digitalization and intelligence" approach improved the operational
efficiency and duty experience of frontline flight crews. The Group advanced
the development of a digital aviation safety platform, strengthening safety
risk prevention and control, and continuously reinforcing the dual foundation
of safety and efficiency. In terms of marketing services, the Group continued
to empower the transformation of marketing models and enhancement of service
quality. The second phase of the business model innovation system established
Air China's new retail system. The promotion of the passenger in-flight
catering reservation management system was accelerated, enhancing passenger
experience and promoting refined management for cost reduction. In terms of
management and synergy, the Group intensified group-wide coordination and
digital empowerment, pushing forward with development of platforms in respect
of human resources, finance and internal control. This enabled refined
management, cost reduction and efficiency enhancement, while meeting
regulatory and compliance requirements.
In 2025, the Group drove development through innovation, promoting in-depth
integration of technology with the industry. The Group deepened
industry-academia-research-application collaboration, partnering with
universities to develop a joint laboratory for intelligent aircraft operation,
maintenance and support. Innovative achievements accumulated rapidly. The
global ground flight support platform was awarded the First Prize for Science
and Technology by the China Communications and Transportation Association; the
passenger service unit project for A320 series aircraft received the
"Technology Breakthrough Award" at the 8th China Aviation Maintenance Red
Crown Awards. The Group fostered a culture of innovation and hosted an AI
Innovation Application Competition that attracted 239 teams from 63
universities, research institutes and internal units nationwide.
Risk Prevention and Control
In 2025, the Group continued to deepen its integrated collaboration mechanism
of "upholding the rule of law, reinforcing internal controls, preventing risks
and promoting compliance". The Group accelerated the implementation of
whole-process, full-chain and full-coverage risk prevention and control
efforts, comprehensively strengthening risk management and control for safe
operations and business risk prevention. The Board assumes overall
responsibility for risk management. The Audit and Risk Management Committee
(the Supervision Committee) is responsible for guiding, supervising and
evaluating risk management-related work. The management is responsible for
organizing, developing and implementing various requirements. The Company
specifically adopted a prudent risk appetite. Centered on the principle of
"zero tolerance for potential safety hazards, uninterrupted fund flows and
reasonable risk exposure", the Company established the "three lines of
defense" for risk management. All business departments, serving as the first
line of defense, are responsible for effectively identifying and controlling
risks, bearing primary responsibility for risks arising from their businesses
and operational processes. Functions such as legal, compliance, finance,
quality, safety and human resources act as the second line of defense,
providing risk management and control policies, methodologies and tools, and
organizing risk monitoring as well as internal control and compliance
management. The internal audit function acts as the third line of defense,
conducting independent evaluation of risk management and control outcomes, and
bearing responsibilities for risk assessment and supervision.
According to the "Implementation Rules for Risk Assessment and Reporting", the
Group refined its risk management framework and ensured effective execution of
the Company's responsibilities for risk identification and control. The Group
persistently strengthened the forward-looking research on various risks,
including those related to the economic environment, market conditions,
industrial policies and industry development trends. An annual forecast and
assessment of major business risks was conducted. The Company identified key
risk areas, achieving effective monitoring and closed-loop management of
risks. According to the "Risk Grading Standards and Risk Incident Reporting
Mechanism", the Group standardized the reporting of daily operational risks.
During the Reporting Period, the Company further deepened risk management for
significant matters by formulating the "Risk Management Measures for
Significant Matters", strengthening risk control at source, process monitoring
and outcome control, thereby enhancing the effectiveness of risk management
for significant matters.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS
The following discussion and analysis are based on the Group's consolidated
financial statements and the notes thereto prepared in accordance with the
IFRS Accounting Standards and are designed to assist the readers in further
understanding the information provided in this announcement so as to better
understand the financial conditions and results of operations of the Group as
a whole.
REVENUE
During the Reporting Period, the Group's revenue was RMB171,485 million,
representing an increase of RMB4,786 million or 2.87% as compared with last
year. Among these, air traffic revenue was RMB162,634 million, representing an
increase of RMB3,431 million or 2.16% as compared with last year; other
operating revenue was RMB8,851 million, representing a year-on-year increase
of RMB1,355 million or 18.08%.
REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
Chinese Mainland 117,457,528 68.50% 118,491,369 71.08% (0.87%)
International 48,653,480 28.37% 43,088,622 25.85% 12.91%
Hong Kong SAR, Macau SAR and Taiwan, China 5,373,638 3.13% 5,118,889 3.07% 4.98%
Total 171,484,646 100.00% 166,698,880 100.00% 2.87%
AIR PASSENGER REVENUE
During the Reporting Period, the Group recorded an air passenger revenue of
RMB154,856 million, representing an increase of RMB3,067 million over the
previous year. Among the air passenger revenue, the increase of capacity
contributed an increase of RMB4,918 million in the revenue, and the increase
of passenger load factor led to an increase of RMB3,978 million in the
revenue, while the decrease of passenger yield resulted in a decrease in
revenue of RMB5,829 million. The Group's capacity, passenger load factor and
yield per RPK in 2025 are as follows:
2025 2024 Change
ASK (million) 367,641.22 356,103.62 3.24%
Passenger load factor 81.88% 79.85% 2.03 ppt
Yield per RPK (RMB) 0.5144 0.5338 (3.63%)
AIR PASSENGER REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
Chinese Mainland 107,036,024 69.12% 109,504,532 72.14% (2.25%)
International 42,668,978 27.55% 37,385,320 24.63% 14.13%
Hong Kong SAR, Macau SAR and Taiwan, China 5,150,777 3.33% 4,898,820 3.23% 5.14%
Total 154,855,779 100.00% 151,788,672 100.00% 2.02%
AIR CARGO AND MAIL REVENUE
During the Reporting Period, the Group's air cargo and mail revenue was
RMB7,778 million, representing an increase of RMB364 million as compared with
last year. Among them, the increase of capacity contributed an increase of
RMB179 million in the revenue, while the increase of cargo and mail load
factor resulted in an increase in revenue of RMB319 million, and the decrease
of yield of cargo and mail resulted in a decrease of RMB134 million in the
revenue. The capacity, cargo and mail load factor and yield per RFTK in 2025
are as follows:
2025 2024 Change
Available freight tonne kilometres (million) 12,934.82 12,629.76 2.42%
Cargo and mail load factor 39.05% 37.47% 1.58 ppt
Yield per RFTK (RMB) 1.5399 1.5665 (1.70%)
AIR CARGO AND MAIL REVENUE CONTRIBUTED BY GEOGRAPHICAL SEGMENTS
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
Chinese Mainland 1,571,017 20.20% 1,490,484 20.10% 5.40%
International 5,984,503 76.94% 5,703,302 76.93% 4.93%
Hong Kong SAR, Macau SAR and Taiwan, China 222,860 2.86% 220,069 2.97% 1.27%
Total 7,778,380 100.00% 7,413,855 100.00% 4.92%
OPERATING EXPENSES
During the Reporting Period, the Group's operating expenses were RMB177,143
million, representing an increase of 3.11% from RMB171,801 million of last
year. The breakdown of the operating expenses is set out below:
2025 2024
(in RMB'000) Amount Percentage Amount Percentage Change
Jet fuel costs 50,041,444 28.25% 53,720,436 31.27% (6.85%)
Take-off, landing and depot charges 21,967,914 12.40% 20,915,459 12.18% 5.03%
Depreciation and amortisation 30,717,739 17.34% 29,102,968 16.94% 5.55%
Aircraft maintenance, repair and overhaul costs 14,813,651 8.36% 12,848,288 7.48% 15.30%
Employee compensation costs 37,047,474 20.91% 34,268,745 19.95% 8.11%
Air catering charges 4,505,386 2.54% 4,165,874 2.42% 8.15%
Selling and marketing expenses 4,918,115 2.78% 4,695,760 2.73% 4.74%
General and administrative expenses 1,922,452 1.09% 1,872,201 1.09% 2.68%
Others 11,208,968 6.33% 10,210,858 5.94% 9.77%
Total 177,143,143 100.00% 171,800,589 100.00% 3.11%
• Jet fuel costs decreased by RMB3,679 million on a
year-on-year basis, mainly due to the combined effect of the decrease in the
prices of jet fuel and increase in the consumption of jet fuel.
• Take-off, landing and depot charges increased by RMB1,052
million on a year-on-year basis, mainly due to the year-on-year increase in
the number of take-offs and landings.
• Depreciation and amortisation expenses increased by RMB1,615
million on a year-on-year basis, mainly due to the expansion of fleet as well
as the year-on-year increase in flying hours.
• Aircraft maintenance, repair and overhaul costs increased by
RMB1,965 million on a year-on-year basis, mainly due to the year-on-year
increase in flying hours and the increase in business volume of the
subsidiaries engaged in repair business.
• Employee compensation costs increased by RMB2,779 million on
a year-on-year basis, mainly due to the year-on-year increase in flight hour
fees.
• Air catering charges increased by RMB340 million on a
year-on-year basis, mainly due to the increase in the number of passengers.
• Selling and marketing expenses increased by RMB222 million
on a year-on-year basis, mainly due to the increase in booking fees resulting
from the increase in the number of passengers.
• Other operating expenses mainly included aircraft and engine
operating lease expenses, civil aviation development fund and
non-above-mentioned ordinary expenses arising from the core air traffic
business, which increased by RMB998 million on a year-on-year basis, mainly
due to the increase in the investment in production and operation.
FINANCE INCOME, FINANCE COSTS AND NET EXCHANGE LOSSES
During the Reporting Period, the Group recorded a finance income of RMB569
million, representing a year-on-year increase of RMB48 million or 9.12%; and
incurred finance costs (excluding the capitalised portion) of RMB5,553
million, representing a year-on-year decrease of RMB846 million or 13.22%.
During the Reporting Period, the Group recorded net exchange gains of RMB328
million contrasting with net exchange losses of RMB760 million for last year.
SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
During the Reporting Period, the net gain from the Group's share of results of
its associates and joint ventures was RMB3,426 million, representing an
increase of RMB606 million from the previous year. Among which, during the
Reporting Period, the Group recognised a gain on investment of Cathay Pacific
of RMB2,998 million, representing a year-on-year increase of RMB499 million.
MATERIAL ACQUISITIONS AND DISPOSALS
The Company did not make any material acquisitions and disposals of
subsidiaries, associates or joint ventures during the Reporting Period.
ASSETS STRUCTURE ANALYSIS
As at the end of the Reporting Period, the total assets of the Group were
RMB343,010 million, representing a decrease of 0.79% from that of 31 December
2024, among which current assets accounted for RMB34,803 million or 10.15% of
the total assets, while non-current assets accounted for RMB308,207 million or
89.85% of the total assets.
Among the current assets, cash and cash equivalents were RMB14,295 million,
accounting for 41.07% of the current assets and representing a decrease of
32.05% from that as at 31 December 2024, which was mainly due to flexible
adjustment of funds according to the capital arrangements.
Among the non-current assets, the aggregated book value of property, plant and
equipment and right-of-use assets as at the end of the Reporting Period
amounted to RMB249,032 million, accounting for 80.80% of the non-current
assets and representing an increase of 3.33% from that as at 31 December 2024.
ASSET MORTGAGE/PLEDGE
As of 31 December 2025, the Group, pursuant to certain bank loans and finance
leasing agreements, had secured aircraft and buildings with an aggregated book
value of approximately RMB4,539 million (RMB3,826 million as at 31 December
2024) and land use rights with book value of approximately RMB23 million
(RMB23 million as at 31 December 2024). Meanwhile, the Group had monetary
capital with restricted ownership of approximately RMB1,564 million
(approximately RMB1,428 million as at 31 December 2024), which were mainly
statutory reserves deposited in the People's Bank of China, pledged bank
deposits, security deposits and time deposits with a maturity of more than
three months.
CAPITAL EXPENDITURE
In 2025, the Group's capital expenditure totalled RMB23,754 million, of which
the total investment in aircraft was RMB16,310 million, mainly including
procurement of aircraft and engines, aircraft modifications, flight
simulators, etc. The cash component for the long-term investments amounted to
RMB4,830 million, including capital injection projects for Shenzhen Airlines,
Air Macau, Air China Inner Mongolia and Sichuan Airlines. Other capital
expenditure investment amounted to RMB2,614 million, mainly including
infrastructure construction, IT system construction, ground equipment
procurement, etc.
EQUITY INVESTMENT
As at the end of the Reporting Period, the Group's equity investment in its
associates amounted to RMB15,788 million, representing an increase of 7.89%
from that of 31 December 2024, mainly due to the effect of recognising the
share of gains of associates and other comprehensive income during the year.
Among this, the balance of the equity investment of the Group in Cathay
Pacific amounted to RMB15,353 million.
As at the end of the Reporting Period, the Group's equity investment in its
joint ventures was RMB2,645 million, representing an increase of 9.12% from
that as at 31 December 2024, mainly due to new investments made and
recognition of the share of investment gains of joint ventures during the
Reporting Period.
DEBT STRUCTURE ANALYSIS
At the end of the Reporting Period, the Group's total liabilities were
RMB303,816 million, representing a decrease of 0.33% from that as at 31
December 2024. Among them, current liabilities amounted to RMB117,292 million,
accounting for 38.61% of the total liabilities; and non-current liabilities
amounted to RMB186,524 million, accounting for 61.39% of the total
liabilities.
Among the current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB66,260
million, representing a decrease of 27.99% from that as at 31 December 2024.
Among the non-current liabilities, interest-bearing debts (including
interest-bearing borrowings and lease liabilities) amounted to RMB162,060
million, representing an increase of 12.56% from that as at 31 December 2024.
Details of interest-bearing debts of the Group categorised by currency are set
out below:
31 December 2025 31 December 2024
(in RMB'000) Amount Percentage Amount Percentage Change
RMB 204,117,822 89.40% 205,662,318 87.15% (0.75%)
US dollars 23,835,123 10.44% 29,874,295 12.66% (20.22%)
Others 366,592 0.16% 443,893 0.19% (17.41%)
Total 228,319,537 100.00% 235,980,506 100.00% (3.25%)
CAPITAL COMMITMENTS
The Group's capital commitments, which mainly consisted of the expenditure in
the next few years for purchasing certain number of aircraft and related
equipment, increased by 14.44% from RMB95,175 million as at 31 December 2024
to RMB108,917 million as at 31 December 2025. The investment commitments
mainly represented the investment agreements entered into, amounted to RMB237
million as at 31 December 2025, as compared to RMB313 million as at 31
December 2024. The Company plans to finance the above payments by internal and
external resources.
GEARING RATIO
As at the end of the Reporting Period, the Group's gearing ratio (total
liabilities divided by total assets) was 88.57%, representing an increase of
0.41 percentage points from that of 31 December 2024.
WORKING CAPITAL AND ITS SOURCES
At the end of the Reporting Period, the Group's net current liabilities
(current liabilities minus current assets) were RMB82,489 million,
representing a decrease of RMB14,434 million from that as at 31 December 2024.
Based on the structure of current assets and current liabilities, the Group's
current ratio (current assets divided by current liabilities) was 0.30,
remaining unchanged as compared to that as at 31 December 2024.
The Group meets its working capital needs mainly through its operating
activities and external financing activities. During the Reporting Period, the
Group's net cash inflow from operating activities was RMB36,374 million,
representing an increase of RMB8,390 million from that in 2024, mainly due to
the impact of the year-on-year increase in sales revenue. Net cash outflow
from investing activities was RMB15,082 million, representing a decrease of
RMB2,781 million from that of 2024, mainly due to the year-on-year decrease in
advance payments for aircraft and flight equipment. Net cash outflow arising
from financing activities amounted to RMB27,980 million, representing an
increase of RMB23,984 million from that of 2024, mainly due to the
year-on-year increase in repayment of borrowings and bonds.
The Group has obtained bank facilities granted by several banks in China,
which are sufficient to meet the demands on working capital and future capital
commitments.
OPERATIONAL PLAN
The Company has identified the following key priorities for 2026: (1) to
firmly secure the base line of safe development, ensuring high-quality
development with a high level of safety; (2) to enhance its value creation
capability and continue the campaign to enhance operating performance through
quality and efficiency enhancement; (3) to continue advancing deepened reform
and stimulate vitality and momentum through innovation-driven development; (4)
to continuously optimize the service system, creating a leading brand with
credibility, convenience, comfort and choice; and (5) to comprehensively
strengthen the Party's leadership and lead high-quality development with
high-quality Party building.
OUTLOOK FOR FUTURE
Company Development Strategy
The Group adheres to the development goal of "accelerating the development
into a world-class aviation transportation group with global competitiveness".
Upholding the four strategic directions of "hub network, balanced
passenger-cargo development, cost leadership, and brand strategy", the Group
will focus on key areas such as enhancing safety management, optimizing market
layout, adjusting resource structure, upgrading products and services, driving
digital innovation development, and promoting green and low-carbon development
to advance its operations.
Safety management will reach a new level. With the refinement of the safety
management system, flight training system, aircraft maintenance system, and
operational management system, the safety control mechanism will be further
improved, the efficiency of safety management continuously enhanced, and the
implementation of responsibilities more clearly defined, maintaining a
high-level safety operation.
Optimized market layout will create new advantages. By persistently serving
national strategies and major decisions and deployments, and under the new
development pattern of domestic and international dual circulation, the Group
will optimize the layout of its base markets, highlight strengths and
priorities, and consolidate new advantages for development. The core network
structure of the "four-corner rhombus and four-pole clusters" will be further
refined, and network synergy within the Air China family carriers will be
continuously deepened.
Resource structure adjustment will present a new outlook. The alignment of
core resources with market characteristics will be enhanced, establishing
long-term advantages in fleet development. The efficiency of flight crew and
human resources allocation will be optimized, and the alignment of maintenance
and investment layouts with the development layout of the principal business
will be continuously strengthened.
Product and service upgrades will achieve a new level. Product and service
quality will see significant improvement, with service features becoming more
distinctive. An efficient and well-connected standards system will be
established, enabling smoother full-process service support and more efficient
service synergy across all business segments.
Digital innovation and development will enter a new stage. A sound
technological innovation management system and mechanism will be in place,
with the core role of innovation in the Group's development gradually
strengthening. The effectiveness of innovation-driven development will become
more prominent, digital transformation will achieve new breakthroughs, and the
development of digital platform will make key progress.
Green and low-carbon development will demonstrate new accomplishments. The
energy conservation and environmental protection management system will
operate more efficiently. Pollution and carbon reduction measures will be more
effective, pollution prevention achievements more substantial, carbon
emissions and carbon asset management more professionalized, and participation
in social welfare activities more extensive.
POTENTIAL RISKS
1. Risks of External Environment
Market Fluctuation
As China's economy maintained steady growth and residents' income increased
steadily, the likelihood of fluctuations in the domestic market was relatively
low. With the accelerated changes in the international landscape, external
risks, challenges and uncertainties increased significantly, and certain
international markets were exposed to some degree of volatility risk. Based on
the characteristics of the new development stage, the Group will fully,
precisely and comprehensively implement the new development philosophy,
coordinate development and safety, and take the initiative to contribute to
and integrate with the new development paradigm. Seizing the development
opportunities in the industry, the Group will further develop its domestic
route network and actively expand into emerging international markets, in a
bid to proactively adapt to the rapidly changing market environment.
Oil Price Fluctuation
Jet fuel is one of the main operating costs of the Group. The performance of
the Group is affected to a certain extent by fluctuations in jet fuel prices.
During the Reporting Period, with other variables remaining unchanged, if the
average price of the jet fuel rises or falls by 5%, the Group's jet fuel costs
will rise or fall by approximately RMB2.502 billion. The collection of fuel
surcharges has relieved the Company's jet fuel cost pressure to a certain
extent.
Exchange Rate Fluctuation
Certain assets and liabilities of the Group are denominated in US dollar.
Certain international income and expenses of the Group are also denominated in
currencies other than RMB. Assuming that the risk variables other than the
exchange rate stay unchanged, the appreciation or depreciation of RMB against
US dollar by 1% due to the changes in the exchange rate will result in the
increase or decrease in the Group's net profit and shareholders' equity as at
31 December 2025 by RMB140 million.
2. Risks of Competition
Industry competition
During the Reporting Period, the Company still faced considerable competitive
pressure within the industry. In respect of the domestic market, as there was
no significant reduction in the number of market participants, against the
backdrop of intensified competition from high-speed railway and changes in
passenger structure, homogeneous competition still existed. In respect of the
international market, the new routes of domestic airlines were mainly
concentrated in destinations such as Central Asia, Western Asia and Europe,
resulting in intensified competition in certain regions within a short period
of time. Adhering to its hub network strategy, the Company will spare no
efforts in building international aviation hubs in Beijing and Chengdu,
realising differentiated development from other market competitors. Main
routes and express routes will be launched centering on hubs as well as
principal bases and markets with a view to strengthening core market
competitiveness with high-quality products, services and travel experiences.
Alternative competition
With the increasing density of China's high-speed railway network, passengers
on existing short-and medium-haul routes have gradually shifted to high-speed
rail, which posed challenges to the civil aviation industry. At the same time,
the extensive transport network of high-speed rail has also provided civil
aviation with more punctual and efficient feeder traffic for medium- and
long-haul routes, while more and more passengers chose the air-rail intermodal
transport. Looking forward, leveraging the enhanced cooperation and
competition between civil aviation and high-speed railway with complementary
advantages, the integrated development of the air-rail intermodal transport
will accelerate the construction of a modern comprehensive transportation
system.
SHARE CAPITAL STRUCTURE
As at the end of the Reporting Period, the Company had a total share capital
of RMB17,448,421,000, divided into 17,448,421,000 shares with par value of
RMB1.00 each. The following table sets out the share capital structure of the
Company as at the end of the Reporting Period:
Percentage of
Number of the total share capital
Type of shares shares
A Shares 12,492,810,328 71.60%
H Shares 4,955,610,672 28.40%
Total 17,448,421,000 100.00%
PURCHASES, SALES OR REDEMPTION OF LISTED SECURITIES
During the Reporting Period, neither the Company nor any of its subsidiaries
purchased, sold or redeemed any listed securities of the Company (including
the sales of treasury shares (as defined in the Listing Rules)) (the term
"securities" has the meaning ascribed to it under Paragraph 1 of Appendix D2
to the Listing Rules).
CORPORATE GOVERNANCE
Compliance with the Corporate Governance Code
The Company has always been committed to maintaining and enhancing the level
of its corporate governance so as to ensure greater accountability and
transparency of the Group and deliver long-term return to its shareholders.
The Company has complied with the code provisions in Part 2 of the Corporate
Governance Code in Appendix C1 to the Listing Rules throughout the Reporting
Period.
Compliance with the Model Code
The Company has adopted and formulated a code of conduct on terms no less
stringent than the required standards of the Model Code. After making specific
enquiries, the Company confirmed that each Director has complied with the
required standards of the Model Code and the Company's code of conduct
throughout the Reporting Period; and each Supervisor has complied with the
required standards of the Model Code and the Company's code of conduct from
the beginning of the Reporting Period until 24 June 2025, the date on which
the Supervisory Committee was abolished by the Company.
DIVIDENDS
According to the audited financial statements of the Company prepared in
accordance with the CASs and the IFRS Accounting Standards, the Company
recorded negative profits available for distribution to shareholders in 2025.
As considered and approved by the 14th meeting of the seventh session of the
Board of the Company, the Company proposed not to make profit distribution for
the year of 2025.
ANNUAL SHAREHOLDERS' MEETING ("AGM") AND CLOSURE OF REGISTER OF MEMBERS
The Company proposed to hold the AGM on Thursday, 28 May 2026. The register of
members of H Shares will be closed from Friday, 22 May 2026 to Thursday, 28
May 2026 (both days inclusive), during which period no transfer of shares will
be effected. In order to qualify for attendance and voting at the AGM, the
holders of H Shares must return all the transfer documents to the Company's H
Shares registrar in Hong Kong, Computershare Hong Kong Investor Services
Limited, at Shops 1712-1716, 17/F, Hopewell Centre, 183 Queen's Road East, Wan
Chai, Hong Kong by 4:30 p.m. on Thursday, 21 May 2026. The holders of H Shares
whose names appear on the register of members of the Company at the close of
business on Thursday, 21 May 2026 are entitled to attend and vote at the AGM.
ANNUAL REPORT
The annual report for the year ended 31 December 2025 containing all
information required by Appendix D2 to the Listing Rules will be published on
the HKEXnews website of the Hong Kong Stock Exchange (www.hkexnews.hk)
(http://www.hkexnews.hk/) as well as the website of the Company
(www.airchina.com.cn) (http://www.airchina.com.cn/) in due course.
FORWARD-LOOKING STATEMENT
The Company would like to remind readers of this announcement that the
operations of the air transport industry are largely influenced by global
political and economic developments. Unexpected and unforeseeable events may
have a material impact on the Company's business or the industry as a whole.
The Company's 2025 annual results announcement contains, inter alia, certain
forward-looking statements, such as those regarding the global and Chinese
economies and aviation markets. These forward-looking statements are subject
to certain uncertainties and risks.
THE AUDIT AND RISK MANAGEMENT COMMITTEE (THE SUPERVISION COMMITTEE)
The 2025 annual results of the Company have been reviewed by the Audit and
Risk Management Committee (the Supervision Committee) of the Board.
GLOSSARY OF TECHNICAL TERMS
Capacity Measurements
"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 2025 to 31 December 2025
"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
"Shenzhen Airlines" Shenzhen Airlines Company Limited, a non-wholly owned subsidiary of the
Company
"Supervisor(s)" the supervisor(s) of the Company, and the Company has abolished the
supervisory committee on 24 June 2025
"US dollars" United States dollars, the lawful currency of the United States
By Order of the Board Air China Limited
Xiao Feng
Company Secretary
Beijing, the PRC, 26 March 2026
As at the date of this announcement, the directors of the Company are Mr. Liu
Tiexiang, Mr. Qu Guangji, Mr. Cui Xiaofeng, Mr. Patrick Healy, Mr. Xiao Peng,
Mr. Xu Niansha*, Mr. He Yun*, Ms. Winnie Tam Wan-chi* and Mr. Gao Chunlei*.
* Independent non-executive director of the Company
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. END FR UBRSRNRUOURR
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