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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
Revenue162,002.97M20,670.11M
Gross Profit18,899.33M2,411.38M
Operating income12,132.91M1,548.05M
Income before tax10,930.40M1,394.62M
Net income8,706.51M1,110.87M
EBITDA29,223.87M3,728.70M
Diluted EPS0.630.08
Dividends Per Share0.110.01
Total Assets277,856.12M35,489.04M
Total liabilities163,252.47M20,851.34M
Total equity106,232.63M13,568.51M
Operating cash flow34,723.31M4,430.38M
Currency in HKDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 131,914.33M 134,558.19M 133,368.48M 140,112.43M 162,002.97M
Gross Profit 15,914.28M 25,444.63M 25,583.28M 17,913.93M 18,899.33M
Operating income 8,235.56M 18,239.26M 19,625.34M 10,819.65M 12,132.91M
Income before tax 5,381.53M 9,541.03M 11,906.96M 13,678.48M 10,930.40M
Net income 4,848.47M 8,712.50M 7,955.94M 8,353.33M 8,706.51M
EBITDA 22,506.47M 34,199.15M 35,288.63M 26,414.59M 29,223.87M
Diluted EPS 0.39 0.70 0.64 0.62 0.63
Dividends Per Share 0.06 0.12 0.12 0.14 0.11
Total Assets 264,581.99M 254,970.04M 249,960.51M 282,878.44M 277,856.12M
Total liabilities 188,946.10M 174,837.62M 164,048.67M 168,311.98M 163,252.47M
Total equity 67,840.89M 71,309.60M 76,755.29M 103,295.39M 106,232.63M
Operating cash flow 17,799.67M 36,573.20M 32,864.92M 26,889.22M 34,723.31M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 17,010.92M 17,356.58M 17,181.21M 17,979.69M 20,670.11M
Gross Profit 2,052.21M 3,282.08M 3,295.77M 2,298.77M 2,411.38M
Operating income 1,062.01M 2,352.67M 2,528.23M 1,388.41M 1,548.05M
Income before tax 693.97M 1,230.69M 1,533.91M 1,755.26M 1,394.62M
Net income 625.23M 1,123.82M 1,024.92M 1,071.92M 1,110.87M
EBITDA 2,902.30M 4,411.32M 4,546.06M 3,389.60M 3,728.70M
Diluted EPS 0.05 0.09 0.08 0.07 0.08
Dividends Per Share 0.00 0.01 0.01 0.01 0.01
Total Assets 34,118.26M 32,898.72M 32,239.86M 36,186.20M 35,489.04M
Total liabilities 24,364.89M 22,559.25M 21,158.97M 21,530.70M 20,851.34M
Total equity 8,748.18M 9,201.06M 9,899.88M 13,213.69M 13,568.51M
Operating cash flow 2,295.34M 4,717.55M 4,233.82M 3,450.51M 4,430.38M

Valuation Measures

Dec 2018
PER9.43
ROA3.10%
ROE8.31%
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

Shareholders

  • 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 (0.6%)
  • Norges Bank Investment Management (0.5%)
  • FIL Investment Management (Hong Kong) Ltd. (0.5%)
  • Schroder Investment Management (Hong Kong) Ltd. (0.2%)
  • BlackRock Advisors (UK) Ltd. (0.2%)
  • Harvest Global Investments Ltd. (0.1%)

Contact Details

  • Website:http://www.airchina.com.cn
  • Address: No. 30 Tianzhu Road, Airport Industrial Zone, Beijing, 101312, China
  • Phone: +86.10.61462777

Related Companies

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  • Beijing Golden Phoenix Human Resource Co., Ltd.
  • Shanghai International Aviation Air Service Co., Ltd.
  • Zhejiang Aviation Service Co., Ltd.
  • Yunnan Airport Aircraft Maintenance Services Co., Ltd.
  • Qingdao Airlines
  • Air China Inner Mongolia Co., Ltd.
  • Air China Import & Export Trade Co., Ltd.
  • Phoenix 2012 LLC
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  • Air China Business Jet
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  • Air China Development Corporation (Hong Kong) Ltd.
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  • Air China Shantou Industrial Development Co.
  • Chengdu Falcon Aircraft Engineering Service Co., Ltd.
  • Total Transform Group Ltd.
  • Kunming Airlines Co., Ltd.
  • Shenzhen Airlines Co., Ltd.
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Competitors

  • Air New Zealand Limited
  • China Southern Airlines Company Limited Class H
  • Cathay Pacific Airways Limited
  • China Airlines Ltd.
  • China Eastern Airlines Corporation Limited Class H
  • PAL Holdings, Inc.
  • Shandong Airlines Co., Ltd. Class B
  • Turk Hava Yollari A.O.
  • Asia Aviation Public Co., Ltd.
  • Spring Airlines Co., Ltd. Class A
Last Updated on 6 Dec, 2019

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