Air China Limited disclosed a first-half 2026 net loss of RMB 3.43 billion, expanding 26.52% from the RMB 2.71 billion loss a year earlier, despite a 10.54% year-on-year revenue increase to RMB 89.27 billion.
Passenger operations remained the core driver, contributing RMB 80.33 billion, up 9.75%, as available seat kilometres rose 1.75% and passenger load factor improved 4.02 percentage points to 84.74%. International RPK surged 13.98%, but higher fuel prices pressured margins: jet fuel expenses jumped 34.69% to RMB 32.77 billion, accounting for 34.27% of total operating costs. Overall operating expenses climbed 12.38% to RMB 95.60 billion.
EBITDA slipped 3.05% to RMB 12.74 billion; basic loss per share widened to RMB 0.13 from RMB 0.11. The gearing ratio eased to 83.88%, down 4.69 percentage points from end-2025, aided by a RMB 19.99 billion net equity injection.
Cash flow from operations fell 24.28% to RMB 11.23 billion, while capital expenditure reached RMB 12.08 billion, largely for 17 newly introduced aircraft (11 A320s, four B737s, two C919s). The fleet stood at 972 aircraft with an average age of 10.60 years.
In June, Air China issued 3.04 billion new A shares to parent China National Aviation Holding Corporation and subsidiary CNAC Holding, raising RMB 20.00 billion. Approximately RMB 16.87 billion has been used to repay debt and RMB 0.80 billion to replenish working capital; the remainder is scheduled for use by June 2027.
Looking ahead, the Board has approved agreements to purchase 15 Airbus A350-900s for Air China and 40 A320neo-family jets for subsidiary Shenzhen Airlines, subject to shareholder and regulatory clearance.
As of 30 June 2026, total assets reached RMB 352.21 billion, while total liabilities declined 2.76% to RMB 295.44 billion. Net assets attributable to shareholders rose to RMB 59.83 billion, bolstered by the capital raise.
Management cites ongoing market competition, volatile fuel prices and exchange-rate movements as external risks, but expects network optimisation, cost controls and digital initiatives to support longer-term recovery.