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2024 ANNUAL RESULTS

28th Mar 2025 14:55

RNS Number : 7551C
Air China Ld
28 March 2025
 

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

 

中國國際航空股份有限公司

AIR CHINA LIMITED

(a joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 00753)

 

 

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)under expected credit loss model

9,507

(24,617)

 

 

(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 instrumentsat fair value through other comprehensive income

(79,126)

149,253

- Remeasurement of net defined benefit liability

(15,130)

(912)

- Share of other comprehensive (expense)/income ofassociates and joint ventures

(31,632)

43,458

- Income tax credit/(expense) relating to items thatwill not be reclassified to profit or loss

19,782

(37,313)

 

 

Items that may be reclassified subsequently to profit or loss:

- Fair value gains on investments in debt instrumentsat fair value through other comprehensive income

27,772

9,138

- Impairment loss reversed/(recognised) on investments indebt instruments at fair value through othercomprehensive income

394

(6,688)

- Share of other comprehensive expense of associatesand joint ventures

(28,272)

(472,484)

- Exchange differences on translation of foreign operations

434,021

250,817

- Income tax relating to items that may be reclassified subsequently to profit or loss

(7,042)

(613)

 

 

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 throughother comprehensive income

1,791,273

1,547,986

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 equityshareholders of the Company

45,128,172

37,205,975

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 ofFinancial Instruments3

Amendments to IFRS 9 and IFRS 7

Contracts Referencing Nature- dependent Electricity3

Amendments to IFRS 10 and IFRS 28

Sale or Contribution of Assets between an Investorand its Associate or Joint Venture1

Amendments to IFRSAccounting Standards

Annual Improvements to IFRS AccountingStandards - Volume 113

Amendments to IAS 21

Lack of Exchangeability2

IFRS 18

Presentation and Disclosure in Financial Statements4

 

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

Otheroperations

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 SARand Taiwan, China

5,118,889

-

4,126,997

-

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 segmentsunder CASs and IFRS Accounting Standards

161,616,739

14,580,411

(9,498,270)

166,698,880

 

 

 

 

Segment (loss)/profitbefore taxation

(Loss)/profit before taxation for reportable segments under CASs

(2,239,127)

795,124

(161,195)

(1,605,198)

 

 

 

Effect of differences betweenIFRS Accounting Standards and CASs

6,330

 

Loss before taxation for the yearunder IFRS Accounting Standards

(1,598,868)

 

 

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 segmentsunder CASs and IFRS Accounting Standards

136,971,114

12,245,515

(8,116,395)

141,100,234

 

 

 

 

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 betweenIFRS Accounting Standards and CASs

10,628

 

Loss before taxation for the yearunder IFRS Accounting Standards

(1,649,779)

 

 

 

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 betweenIFRS Accounting Standards and CASs

(19,239)

 

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 betweenIFRS Accounting Standards and CASs

(23,987)

 

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 and IFRS Accounting Standards

301,829,477

27,135,795

(24,141,069)

304,824,203

 

 

 

 

Total liabilities for reportable segments as at 31 December 2023 under CASs and IFRS Accounting Standards

294,072,306

23,748,047

(17,805,668)

300,014,685

 

 

 

 

 

 

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 associatesand joint ventures

2,535,142

284,702

-

2,819,844

-

2,819,844

Net impairment losses reversed/(recognised) on financial assets

11,792

(27,985)

25,700

9,507

-

9,507

Impairment losses recognisedon 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 andjoint 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

 

 

 

 

 

 

 

Year ended 31 December 2023

 

Airline operations

Other operations

Elimination

Total

Effect of differences between IFRS Accounting Standards and CASs

Amounts underIFRS Accounting Standards

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

RMB'000

Other segment information

Share of profit of associatesand joint ventures

2,501,992

331,986

-

2,833,978

-

2,833,978

Net impairment losses (recognised)/reversed on financial assets

(18,271)

41,094

(47,440)

(24,617)

-

(24,617)

Impairment losses recognisedon non-financial assets

192,203

29,900

-

222,103

-

222,103

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 andjoint ventures

12,559,126

2,656,782

(79,005)

15,136,903

139,919

15,276,822

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

 

MainlandChina

Hong Kong SAR, Macau SAR and Taiwan, China

International

Total

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

 

MainlandChina

Hong Kong SAR, Macau SAR and Taiwan, China

International

Total

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 andtax losses not recognised

1,058,113

1,005,444

Utilisation of tax losses and deductible temporary differencesnot recognised in prior years

(17,067)

(197,941)

Under provision in respect of prior years

879

13,600

Reversal of unrealised equity investment income recognisedas deferred tax liabilities in prior years

(276,274)

-

 

 

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 ofbasic and diluted loss per share

15,864,560

15,401,755

 

 

 

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 Standards

(232,557)

(1,038,411)

 

 

 

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 Standards

45,128,172

37,205,975

 

 

 

 

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.

 

Currentyear

Previousyear

Increase/(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(block hours per day per aircraft)

8.90

8.14

0.76 hours

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 75th anniversary of the founding of New China and served as a critical year for achieving the goals and tasks outlined in the "14th 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 20th National Congress of the Communist Party of China (CPC) and the Second and Third Plenary Sessions of the 20th 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 30th 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 "14th Five-Year Plan" and a pivotal transition to the "15th 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 30th 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 14th 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 14th 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 ofshares

Percentage ofthe total sharecapital

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 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.

 

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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