Air China Ltd.

In the news

Private carriers lead China's aviation rebound from coronavirus Jul 21, 2020
Governance group questions role of Cathay bailout 'observers' Jun 26, 2020
Bailout of Hong Kong's Cathay Pacific gets investors' scrutiny Jun 10, 2020
Hong Kong government leads $5bn bailout of Cathay Pacific Jun 9, 2020
Flying to China still a challenge as restrictions extended May 26, 2020

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 2021	HKD	USD
Revenue	89,826.38M	11,556.44M
Gross Profit	-20,444.45M	-2,630.24M
Operating income	-24,887.93M	-3,201.91M
Income before tax	-25,321.16M	-3,257.64M
Net income	-20,048.89M	-2,579.35M
EBITDA	342.55M	44.07M
Diluted EPS	-1.45	-0.18
Dividends Per Share	0	0
Total Assets	364,999.45M	46,817.01M
Total liabilities	283,932.57M	36,418.88M
Total equity	75,070.04M	9,628.93M
Operating cash flow	8,566.51M	1,102.10M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	140,112.43M	162,002.97M	154,417.52M	78,100.90M	89,826.38M
Gross Profit	17,913.93M	18,899.33M	19,449.34M	-12,988.60M	-20,444.45M
Operating income	10,819.65M	12,132.91M	12,008.77M	-16,947.14M	-24,887.93M
Income before tax	13,678.48M	10,930.40M	9,802.71M	-14,016.11M	-25,321.16M
Net income	8,353.33M	8,706.51M	7,280.07M	-16,184.94M	-20,048.89M
EBITDA	26,414.59M	29,223.87M	36,137.47M	5,985.54M	342.55M
Diluted EPS	0.54	0.53	0.46	-1.04	-1.45
Dividends Per Share	0.14	0.11	0.04	0	0
Total Assets	282,878.44M	277,856.12M	329,097.89M	336,756.94M	364,999.45M
Total liabilities	168,311.98M	163,252.47M	215,295.23M	236,982.01M	283,932.57M
Total equity	103,295.39M	106,232.63M	104,542.44M	91,936.11M	75,070.04M
Operating cash flow	26,889.22M	34,723.31M	39,004.95M	-4,214.27M	8,566.51M

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	17,979.69M	20,670.11M	19,708.18M	10,069.74M	11,556.44M
Gross Profit	2,298.77M	2,411.38M	2,482.30M	-1,674.65M	-2,630.24M
Operating income	1,388.41M	1,548.05M	1,532.66M	-2,185.03M	-3,201.91M
Income before tax	1,755.26M	1,394.62M	1,251.11M	-1,807.13M	-3,257.64M
Net income	1,071.92M	1,110.87M	929.15M	-2,086.76M	-2,579.35M
EBITDA	3,389.60M	3,728.70M	4,612.19M	771.73M	44.07M
Diluted EPS	0.06	0.06	0.05	-0.13	-0.18
Dividends Per Share	0.01	0.01	0.00	0	0
Total Assets	36,186.20M	35,489.04M	42,236.44M	43,430.93M	46,817.01M
Total liabilities	21,530.70M	20,851.34M	27,631.00M	30,563.14M	36,418.88M
Total equity	13,213.69M	13,568.51M	13,416.98M	11,856.83M	9,628.93M
Operating cash flow	3,450.51M	4,430.38M	4,978.17M	-543.35M	1,102.10M

Valuation Measures

Dec 2021
PER	--
ROA	-5.71%
ROE	-24.00%
Operating margin	-27.70%
Profit margin	-22.31%

Key executives

Chairman & President: Chong Xian Ma
Chief Financial Officer: Feng Xiao
Chief Engineer: Jiliang Ni
Vice President: Wei Xi Chai
Vice President: Zhi Yong Chen

Shareholders

Cathay Pacific Airways Ltd. (57.7%)
China State-Owned Assets Supervision & Admn Commission (4.9%)
Norges Bank Investment Management (1.8%)
GF Fund Management Co., Ltd. (1.5%)
E Fund Management Co., Ltd. (1.4%)
The Vanguard Group, Inc. (1.3%)
BlackRock Fund Advisors (0.7%)
HuaAn Fund Management Co., Ltd. (0.5%)
FIL Investment Management (Hong Kong) Ltd. (0.5%)
Zheshang Fund Management Co., Ltd. (0.4%)

Contact Details

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

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Competitors

Cathay Pacific Airways Limited
China Southern Airlines Company Limited Class H
China Airlines Ltd.
Turk Hava Yollari A.O.
Spring Airlines Co., Ltd. Class A
Juneyao Airlines Co., Ltd. Class A
Asia Aviation Public Co., Ltd.

Last Updated on 3 Oct, 2022