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China Airlines Ltd.

Company Background

Founded in December 1959 by the Taiwanese government, China Airlines is Taiwan's flagship carrier and its largest. It is a member of the SkyTeam global airline alliance and offers both passenger and air cargo services.

The government-controlled airline flies to major destinations in North America, Europe and Asia. Traditionally a long-haul carrier with a fleet of 90 passenger and cargo jets, it mainly relies on Airbus A330 and Boeing 747 planes for intercontinental flights.

Now it mostly depends on regional passenger flights, particularly to China, Japan and South Korea, for revenue growth. Passenger flights account for more than two-thirds of the company's annual revenue, with the remainder coming from cargo services and onboard sales of duty-free goods.

In 2013, it created Tigerair Taiwan with Singapore-based Tigerair to tap Asia's budget air travel market.

Company President Chang Yu-Hern is a veteran in the local transportation sector. Previously he served as director-general of the Institute of Transportation under Ministry of Transportation and Communications. Before that, he was a director and consultant at the China Aviation Development Foundation, a government-controlled entity that is responsible for growing Taiwan's aviation industry.

Business Summary

China Airlines Ltd. engages in the provision of international air passenger transport and freight services. Its business includes air passenger transport in regular or occasional international charter contract; air cargo services; civil aviation international airport and transit of aircraft handling services; aircraft merchandise sales; aircraft catering; aircraft internal products such as cloth laundry washing and hospitality industry general business; in, out, and transit air cargo warehousing services; and aircraft airframe maintenance. The company was founded on September 07, 1959 and is headquartered in Taoyuan, Taiwan.

Financial Highlights

Dec 2018 TWDUSD
Revenue170,711.60M5,661.23M
Gross Profit16,349.48M542.19M
Operating income4,022.66M133.40M
Income before tax2,714.00M90.00M
Net income1,790.36M59.37M
EBITDA23,539.44M780.62M
Diluted EPS0.310.01
Dividends Per Share0.200.00
Total Assets230,136.58M7,487.28M
Total liabilities170,089.49M5,533.70M
Total equity57,081.57M1,857.09M
Operating cash flow25,188.00M835.29M
Currency in TWDCurrency in USD

Historical Data

 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 150,581.74M 145,056.21M 141,079.10M 156,121.78M 170,711.60M
Gross Profit 12,784.37M 19,445.12M 17,152.70M 21,041.46M 16,349.48M
Operating income 2,514.30M 8,129.47M 4,564.96M 8,826.43M 4,022.66M
Income before tax -151.64M 6,618.74M 1,342.86M 2,987.72M 2,714.00M
Net income -751.23M 5,763.71M 571.54M 2,208.06M 1,790.36M
EBITDA 20,030.17M 25,461.01M 22,257.69M 27,425.31M 23,539.44M
Diluted EPS -0.14 1 0.10 0.39 0.31
Dividends Per Share 0 0.45 0 0.21 0.20
Total Assets 229,071.75M 221,926.30M 224,500.75M 225,899.63M 230,136.58M
Total liabilities 178,541.25M 161,601.78M 166,780.24M 166,888.70M 170,089.49M
Total equity 48,203.53M 58,037.87M 55,637.13M 56,876.64M 57,081.57M
Operating cash flow 16,852.79M 31,948.04M 17,544.64M 28,469.88M 25,188.00M
 Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018
Revenue 4,969.16M 4,568.11M 4,374.43M 5,131.75M 5,661.23M
Gross Profit 421.88M 612.36M 531.85M 691.63M 542.19M
Operating income 82.97M 256.01M 141.54M 290.12M 133.40M
Income before tax -5.00M 208.43M 41.63M 98.20M 90.00M
Net income -24.79M 181.51M 17.72M 72.57M 59.37M
EBITDA 660.99M 801.81M 690.14M 901.47M 780.62M
Diluted EPS -0.00 0.03 0.00 0.01 0.01
Dividends Per Share 0 0.01 0 0.00 0.00
Total Assets 7,248.64M 6,756.36M 6,965.79M 7,591.09M 7,487.28M
Total liabilities 5,649.68M 4,919.83M 5,174.85M 5,608.10M 5,533.70M
Total equity 1,525.33M 1,766.91M 1,726.30M 1,911.27M 1,857.09M
Operating cash flow 556.13M 1,006.10M 544.00M 935.81M 835.29M

Valuation Measures

Dec 2018
PER33.50
ROA0.78%
ROE3.14%
Operating margin2.35%
Profit margin1.04%

Key executives

  • Chairman, President & General Manager: Su Chien Hsieh
  • Vice President-Flight Operations: Ming Hui Lai
  • Vice President-Information Management: Shih-Ming Lu
  • Vice President-Administration: Ming-Jyh Chung
  • Vice President-Passenger Sales & Marketing: Pao-Chu Peng

Shareholders

  • China Aviation Development Foundation (34.4%)
  • National Development Fund of The Executive Yuan (9.5%)
  • Chunghwa Telecom Co. Ltd. (4.8%)
  • Labor Pension New Fund (1.8%)
  • Dimensional Fund Advisors LP (1.8%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.2%)
  • China Airlines Ltd. Employee Stock Ownership Trust Plan (1.0%)
  • Norges Bank Investment Management (0.8%)
  • Hai Yang Investment Co. Ltd. (0.7%)

Contact Details

  • Website:http://china-airlines.com
  • Address: No. 1 Hangzhan South Road, Dayuan District, Taoyuan, 337 58, Taiwan
  • Phone: +886.3.399.8888

Related Companies

  • Taiwan Aircraft Maintenance & Engineering Co. Ltd.
  • Tigerair Taiwan Co., Ltd.
  • Global Sky Express Ltd.
  • China Pacific Laundry Services Ltd.
  • Yestrip Co., Ltd.
  • Hwa Hsia Co. Ltd. /TW/
  • China Airlines Ltd. Employee Stock Ownership Trust Plan
  • China Airlines Ltd. (California)
  • Cal Park Co. Ltd.
  • China Pacific Catering Services Ltd.
  • Taiwan Air Cargo Terminal Ltd.
  • Cal Hotel Co., Ltd.
  • Taoyuan International Airport Services Co. Ltd.
  • Science Park Logistics Co. Ltd.
  • Dynasty Holidays, Inc.
  • Freighter Queen Ltd.
  • Freighter Prince Ltd.
  • Freighter Princess Ltd.
  • Hua Chuan Travel Agency
  • CAL-Asia Investment Inc.
  • Hsien Chi Information System Co. Ltd.
  • Hua Sheng Investment Co. Ltd.
  • Hua Hsin Aviation Co. Ltd.
  • Cal-Dynasty International, Inc.
  • China Airlines Warehouse Co. Ltd.
  • Mandarin Airlines Ltd.
  • Taiwan Airport Services Co. Ltd.

Competitors

  • China Eastern Airlines Corporation Limited Class H
  • China Southern Airlines Company Limited Class H
  • Eva Airways Corporation
  • Nippon Yusen Kabushiki Kaisha
  • Qantas Airways Limited
  • Cathay Pacific Airways Limited
  • Singapore Airlines Ltd.
  • Korean Air Lines Co., Ltd
  • ANA Holdings Inc.
  • Japan Airlines Co., Ltd.
  • Thai Airways International Public Co. Ltd.
  • Asiana Airlines Inc.
  • Air China Limited Class H
  • Turk Hava Yollari A.O.
  • Deutsche Lufthansa AG
  • Air Canada
  • Air France-KLM SA
  • LATAM Airlines Group SA
  • Ryanair Holdings Plc
  • Aeroflot-Russian Airlines PJSC
  • Atlas Air Worldwide Holdings, Inc.
  • Delta Air Lines, Inc.
  • Norwegian Air Shuttle ASA
  • International Consolidated Airlines Group SA
  • American Airlines Group, Inc.
  • United Airlines Holdings, Inc.
  • United Parcel Service, Inc. Class B
  • Deutsche Post AG
  • easyJet plc
  • FedEx Corporation
Last Updated on 20 Sep, 2019

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