China Airlines Ltd. · TWSE:2610
China Airlines — Q1-Q3 2022 Earnings Presentation
23 slides from China Airlines's earnings presentation, Dec 9, 2022
Slide 1: China Airlines 2022 2nd Investor Conference
China Airlines 2022 2nd Investor Conference Dec.09.’22
Slide 2: Safe Harbor Notice
Safe Harbor Notice The information disclosed in this presentation and its accompanying announcements, including content relating to business outlooks, financial operations, and business forecasts, is based on information derived from internal corporate data and external economic developments as a
Slide 3: Agenda
Agenda 2022Q1-Q3 Operating Performance 1. Operating results 3. Financial risk management 2. Revenue & Cost breakdown Operation Overview & Market Outlook 1. Pax & Cargo performance 4. Fleet planning 2. Business outlook 5. Sustainable development 3. Pax & Cargo strategies 3
Slide 4: 2022Q1-Q3 Operating Results
2022Q1-Q3 Operating Results
Slide 5: 2022 Q1-Q3 Financial Results
2022 Q1-Q3 Financial Results (NTD 100 Million) 2021Q1-Q3 2022 Q1-Q3 Differences YoY Operating revenue Passenger revenue 45.69 122.81 77.12 +168.79% Cargo revenue 813.10 928.08 114.98 +14.14% Other operating revenue 57.96 66.94 8.98 +15.49% Net Operating Income 47.22 42.49 -4.73 -10.02% Net Income Af
Slide 6: Revenue breakdown and comparison
Revenue breakdown and comparison By 2022Q3, Cargo revenue is still the main part of operating revenue (80%), while the proportion of passenger revenue has increased to 20%. Compared with last year, the revenue of 2022Q3 is lower than that of 2021Q4, 6% higher than 2021Q3 and 2% higher than 2022Q
Slide 7: Cost breakdown and comparison
Cost breakdown and comparison 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2022 Q1-Q3 40% 18% 14% 14% 9% 3% Rental、Depr. Airport & OTH Fuel Labor Maintenance ground & Amortization Sales & handling passenger service 2021 Q1-Q3 28% 22% 16% 17% 11% 4% Based on individual financial report 7
Slide 8: Fuel cost analysis
Fuel cost analysis Unit 2021 Q1-Q3 2022 Q1-Q3 YoY Jet fuel(MOPS) USD/BBL 70.75 129.79 83.45% Fuel Consumption 10K BBL 1,059.95 1,004.17 -5.26% TWD Fuel Cost 100 million 223.27 395.30 77.05% TWD Hedging gain 100 million (0.02) (1.12) - TWD Total fuel cost 100 million 223.25 394.18 76.56% Based on ind
Slide 9: Stable financial structure
Stable financial structure Debt ratio Current ratio 200% 79.48% 161.25% 80% 78.64% 74.53% 150% 73.81% 73.91% 73.80% 106.30% 98.8% 100% 86.7% 78.6% 70% 67.9% 50% 60% 0% 2017 2018 2019 2020 2021 2022Q3 2017 2018 2019 2020 2021 2022Q3 Based on consolidated financial report 9
Slide 10: Financial risk management
Financial risk management CAL’s hedging of fuel, exchange rates and interests rates etc., are based on the decisions made by the risk committee of Board of Directors. Exchange rates ： Natural hedge is applied in order to reduce influences made by currency fluctuation. Interest rates：Issue fixe
Slide 11: Operation Overview & Market Outlook
Operation Overview & Market Outlook
Slide 12: 2022Q1-Q3 Passenger operational results
2022Q1-Q3 Passenger operational results Passenger revenue distribution by region Available seat kilometer Currency: TWD Hong Kong, (ASK) 2% Passenger revenue 7.69(+172.0%) North East billion Asia, 6% 9.06billion Average load factor Oceanic, 8% North America, 31% YoY(+ 251.3 %) China, 11% Revenue pas
Slide 13: Passenger operating performance
Passenger operating performance Taiwan reopened for transit passenger starting from June 15, 2022, and adopted 7-day self-initiated prevention policy for arrivals from October 13, 2022. The number of passenger has been increasing significantly since June. Based on individual financial report 13
Slide 14: 2022Q1-Q3 Cargo operational results
2022Q1-Q3 Cargo operational results Cargo revenue distribution by region Currency: TWD Available Freight Ton Kilometer(AFTK) Oceanic Hong Kong 3% 1% Cargo revenue North East Asia 6.24 billion 6% 92.51billion (-14.8 %) China, 6% YoY(+ 14.1 %) Average load factor Carried tonnes 77.8 % Europe, 11% Nort
Slide 15: Cargo operating performance
Cargo operating performance Affected by the overall economic environment, the demand of freight market is getting weak gradually. From January to October 2022, the average Load factor has maintained 78%, and the yield of Q3 has slowed down. Compared with the same period of last year, it is relat
Slide 16: Air passenger recovery continues
Air passenger recovery continues Source: IATA 16
Slide 17: Recovery continues as passenger demand remains strong
Recovery continues as passenger demand remains strong 06/15 3+4 quarantine／weekly cap of arrivals 25,000 Taoyuan International Airport 07/07 weekly cap of arrivals increased to 40,000 Passenger Volume 08/15～0822 million/person Arrival/Departure/Transit remove requirement that inbound passenger
Slide 18: Air cargo tracks near pre-COVID levels
Air cargo tracks near pre-COVID levels International CTKs International air cargo September 2022 ﹙YoY% change versus 2018﹚ ﹙YoY% change versus 2019﹚ (% ch vs the same month in 2019) ACTK/CTK CLF Asia Latin Middle North 20% CTK 100% Pacific Africa Europe America East America Industry 20% 17.8% 10% 80
Slide 19: Operating challenges
Operating challenges Sustainable development Economic Factors Geopolitics Airspaces closure Inflation, Interest Rates, and Exchange Rates Russia-Ukraine crisis Oil prices extremely high GDP／Manufacturing PMI index Service Disruptions Supply chain issues US-China chip war Coronavirus variant Unforese
Slide 20: Operation strategy
Operation strategy Passenger Cargo Introduce new A321neo aircraft Introduce 777F new freighter Develop potential routes in Southeast Asia Cultivate the market, develop potential ex: CEB, CNX, DAD, goods and grasp industrial changes Increase flights between Southeast Asia and Fully plan c
Slide 21: The next generation fleets ready for post-pandemic boom
The next generation fleets ready for post-pandemic boom Year End Year End Aircraft Type Boeing 787-9 x16 2022 2023 Entry Into Service 777-300ER 10 10 A350-900 14 14 2024 2026 A330-300 20 19 737-800 12 10 A321neo 10 12 Passenger Jets 66 65 2025 747-400F 17 16 777F 5 7 Freighters 22 23 Boeing 777F x10
Slide 22: Sustainability performance and recognition
Sustainability performance and recognition The only Taiwanese airline selected for DJSI Emerging Markets for six consecutive years and ranked in 2nd place among the world's airlines. The only Taiwanese airline selected for Sustainability Yearbook for five consecutive years and awarded “Silver Cl
Slide 23: Thank you
& CHINA AIRLINES ©) Thank you