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Air China

Company Background

Air China, a state-owned enterprise, is one of the country's top three carriers, alongside China Eastern Airlines and China Southern Airlines. Air China is a national flag carrier used by the country's top dignitaries, including the president and premier, when they fly domestically and internationally.

The airline's predecessor was a civil aviation arm of China's air force. It was brought under direct government control in 1980. The carrier was then split up, with what is now Air China taking over the Beijing base of operations and international routes. In another round of reorganization in 2002, the spinoffs were consolidated into Air China, China Eastern and China Southern.

Air China is headquartered at Beijing Capital International Airport. It is a member of Star Alliance and has a capital tie-up with Hong Kong's Cathay Pacific Airways. It boasts the largest international network of the major Chinese airlines.

Its leading shareholder is the state-owned China National Aviation Holding. Critics say privatization and service enhancements are needed to boost Air China's competitiveness.

Business Summary

Air China Ltd. engages in the operation of airline industry. It provides aircraft engineering, food catering, airport ground handling, cargo and passenger air transportation and other airline-related services. The company was founded in 1988 and is headquartered in Beijing, China.

Financial Highlights

Dec 2018 HKDUSD
Gross Profit15,956.15M2,035.86M
Operating income10,243.47M1,306.97M
Income before tax9,228.22M1,177.43M
Net income7,350.66M937.87M
Diluted EPS0.530.06
Dividends Per Share0.110.01
Total Assets243,657.10M31,120.98M
Total liabilities143,159.07M18,284.92M
Total equity93,157.34M11,898.47M
Operating cash flow29,315.88M3,740.44M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 104,816.24M 109,088.21M 114,144.44M 121,510.73M 136,774.40M
Gross Profit 12,645.14M 20,628.32M 21,895.65M 15,535.63M 15,956.15M
Operating income 6,543.80M 14,786.82M 16,796.50M 9,383.21M 10,243.47M
Income before tax 4,276.04M 7,735.05M 10,190.66M 11,862.49M 9,228.22M
Net income 3,852.49M 7,063.34M 6,809.15M 7,244.32M 7,350.66M
EBITDA 17,883.15M 27,725.73M 30,202.04M 22,907.72M 24,672.86M
Diluted EPS 0.31 0.57 0.55 0.53 0.53
Dividends Per Share 0.06 0.12 0.12 0.14 0.11
Total Assets 211,669.69M 213,631.15M 224,050.95M 235,644.58M 243,657.10M
Total liabilities 151,159.80M 146,490.79M 147,044.26M 140,207.95M 143,159.07M
Total equity 54,273.76M 59,748.01M 68,799.25M 86,047.56M 93,157.34M
Operating cash flow 14,143.23M 29,650.41M 28,127.69M 23,319.34M 29,315.88M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 13,516.51M 14,071.22M 14,704.67M 15,592.65M 17,451.17M
Gross Profit 1,630.64M 2,660.83M 2,820.71M 1,993.58M 2,035.86M
Operating income 843.85M 1,907.34M 2,163.81M 1,204.08M 1,306.97M
Income before tax 551.41M 997.74M 1,312.81M 1,522.23M 1,177.43M
Net income 496.79M 911.09M 877.19M 929.61M 937.87M
EBITDA 2,306.11M 3,576.32M 3,890.78M 2,939.59M 3,148.03M
Diluted EPS 0.04 0.07 0.07 0.06 0.06
Dividends Per Share 0.00 0.01 0.01 0.01 0.01
Total Assets 27,295.13M 27,564.77M 28,898.05M 30,143.98M 31,120.98M
Total liabilities 19,492.29M 18,901.67M 18,965.74M 17,935.59M 18,284.92M
Total equity 6,998.68M 7,709.27M 8,873.71M 11,007.32M 11,898.47M
Operating cash flow 1,823.83M 3,824.58M 3,623.55M 2,992.41M 3,740.44M

Valuation Measures

Dec 2018
Operating margin7.48%
Profit margin5.37%

Key executives

  • Vice Chairman & Chief Executive Officer: Zhi Yong Song
  • Vice President: Wei Xi Chai
  • Vice President: Chong Xian Ma
  • Vice President: Gang Feng
  • Vice President: Xiao Hang Zhao


  • Cathay Pacific Airways Ltd. (57.7%)
  • China State-Owned Assets Supervision & Admn Commission (4.9%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.0%)
  • Dimensional Fund Advisors LP (0.5%)
  • Norges Bank Investment Management (0.5%)
  • FIL Investment Management (Hong Kong) Ltd. (0.5%)
  • JPMorgan Asset Management (UK) Ltd. (0.4%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Yinhua Fund Management Co., Ltd. (0.2%)

Contact Details

  • Website:
  • Address: No. 30 Tianzhu Road, Airport Industrial Zone, Beijing, 101312, China
  • Phone: +86.10.61462777

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Last Updated on 18 Oct, 2019

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