China Southern Airlines Company (1055) H2 2025 earnings summary

Executive summary

• Net profit attributable to equity shareholders reached RMB855 million in 2025, reversing a net loss of RMB1,769 million in 2024, driven by higher passenger and cargo revenues and improved operational efficiency.

• Total operating revenue rose 4.61% year-over-year to RMB182,256 million, with international passenger revenue up 20.48% and cargo revenue up 5.22%.

• Passenger load factor increased by 1.36 percentage points to 85.74%, while yield per RPK declined by 4.17%.

• Operating profit grew 15.08% to RMB9,583 million, and operating expenses increased 3.00% to RMB176,965 million.

• No dividend was recommended for 2025 due to profit distribution conditions not being met.

Financial highlights

• Operating revenue: RMB182,256 million (up 4.61% YoY); operating profit: RMB9,583 million (up 15.08% YoY).

• Net profit attributable to equity shareholders: RMB855 million (vs. net loss of RMB1,769 million in 2024).

• Operating expenses: RMB176,965 million (up 3.00% YoY); depreciation and amortisation: RMB31,209 million (up 10.12% YoY).

• Income tax expense: RMB2,125 million (up from RMB1,426 million in 2024).

• Total assets: RMB350,053 million; total liabilities: RMB294,803 million; debt ratio: 84.22%.

Outlook and guidance

• 2026 global economic growth projected at 3.3%; China expected to maintain a positive long-term outlook with proactive macro policies.

• Focus areas include safety, operational efficiency, digital transformation, brand building, and deepening reforms.

• Plans to expand international capacity, enhance logistics, and accelerate digital and AI-driven initiatives.