China Airlines Ltd. · TWSE:2610
China Airlines — H1 2025 Earnings Presentation
46 slides from China Airlines's earnings presentation, Aug 26, 2025
Slide 1: China Airlines 2025 3rd Investor Conference
China Airlines 2025 3rd Investor Conference Aug.26’ 25
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 2025H1 Operating Outcomes USA Tariff Issues Passenger Market Update Cargo Market Update Fleet Development & Aircraft Maintenance Development Sustainability Actions and Achievements 3
Slide 4: 2025H1 Operating Outcomes
SB CHINA AIRLINES ©) The best carrier from Taiwan 2025H1I Operating Outcomes
Slide 5: 2025H1 Financial Performance
2025H1 Financial Performance In H1 2025, revenue reached NT$104.1 billion, operating net profit NT$ 8.9 billion, with NT$ 8.04 billion in net profit attributable to the parent (+23% YoY) and EPS of NT$1.32 (+22% YoY), continuing strong growth. (TWD 100 Million) 2025 H1 2024 H1 Diff. YoY Operating re
Slide 6: Group Financial Ratio
Group Financial Ratio CAL Financial Ratios trend 16.00 15.22 14.16 15.00 Stable growth and 79% 14.00 improving financial health. 12.33 13.00 12.00 Debt Ratio 10.44 73% 11.00 25Q2 v.s 19Q4 72% 10.00 Book Value Per Share 70% Book Value per share +4.78 9.00 Debt ratio -9ppt 65% 8.00 2019/12 2023/12 202
Slide 7: The Growth Operating Revenue
The Growth Operating Revenue In 2025H1, revenue grew 5% compared to the same period last year. North America routes rose by 13% , while Europe, China and Southeast Asia increased by 2%. 2025 H1 Revenue vs. Prior Years +2% TWD100 million EUR +2% +13% PRC 892 TPA 847 +2% 793 SEA 720 2019 2023 2024 202
Slide 8: Operating Cost Breakdown and Comparison
Operating Cost Breakdown and Comparison Fuel (Percentage decreasing due cost remain approx. the same) 30% 33% Labor Rental & Depr. 17% 17% Maint. (Pct. Increasing due the extension of fleet leases) 14% 14% Airport 15% 14% Passenger Svc. (Pct. increasing due meal and product quality enhancement) 11%
Slide 9: Fuel Cost Analysis
Fuel Cost Analysis In H1 2025, average fuel 2025H1 2024H1 YoY prices dropped 14.8% YoY, while fuel usage Jet fuel (SIN JET) 85.6 100.5 -14.8% USD/BBL rose 4.4%. Including Fuel Consumption 790.4 757.3 4.4% NT$12 million in hedging 10K/BBL costs, total fuel expenses Hedging cost (TWD 100 million) 0.12
Slide 10: Crude Oil and Jet Fuel Price Trends
Crude Oil and Jet Fuel Price Trends Sin Jet and Brent Price USD/BBL Brent Oil prices fell Crack 150 Brent from April due to OPEC+ 128.3 Sin Jet output hikes, briefly rose in 120 June amid Middle East 95.4 83.6 90 tensions, then stabilized in July supported by travel 60 66.8 20 AUG’25 demand and geop
Slide 11: USA Tariff Issues
SB CHINA AIRLINES ©) The best carrier from Taiwan USA Tariff Issues
Slide 12: Potential Impact of USA Tariff Policy on the Aviation Industry
Potential Impact of USA Tariff Policy on the Aviation Industry The new U.S. tariff policy has taken effect on August 7 and will be related to air passenger transport, cargo, finance, fleet and maintenance. The related risks and opportunities are as follows. Passenger： Cargo： Softening Demand Momentu
Slide 13: Passenger Market Update
SB CHINA AIRLINES ©) The best carrier from Taiwan Passenger Market Update
Slide 14: 2025H1 Passenger Operational Results
2025H1 Passenger Operational Results In H1 2025, passenger revenue reached NT$53.1 billion. Despite slight drops in load factor and unit revenue, both European & China routes outperformed last year, showing resilient travel demand amid global uncertainties. 2025H1 2024H1 YoY Passenger HKG 2% OCE 7%
Slide 15: 2025H1 Passenger Revenue and Load Factor
2025H1 Passenger Revenue and Load Factor The peak holiday season boosted passenger demand; leisure and regional routes such as Bali, Okinawa, and cities in Malaysia and Australia performed strongly, with high passenger load factors . Yield NT $billion 1.0 2024 Pax Rev 2025 Pax Rev 2024 L/F 2025 L/F
Slide 16: Global Passenger Market Outlook
Global Passenger Market Outlook • In its June update, IATA forecasts 2025 global air passenger traffic (RPK) to grow by 5.8%, with the Asia-Pacific region remaining the key driver of global growth。 • According to Boeing’s June 2025 CMO, global passenger traffic has demonstrated long-term resilience—
Slide 17: Taoyuan Airport (TPE) Passenger Market Snapshot & Outlook
Taoyuan Airport (TPE) Passenger Market Snapshot & Outlook • From Jan–May 2025, TPE handled 19.57M passengers, up 6.3% YoY and reaching 96.5% of 2019 levels. Transfer traffic rose over 31% vs. 2019. • By July, the NTD had appreciated 10–12%, boosting outbound travel. TIAC projects 8.53M (9.5% YoY) su
Slide 18: Two Key Policies Driving Higher Travel Demand
Two Key Policies Driving Higher Travel Demand More National Holidays Sep - Oct Take 3 or 4 days off, get 9 days vacation 5 additional national holidays have Sat Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Fri Sat Sun been added in the second half of the year, bringing the total to 4 long Oct Take
Slide 19: Passenger Operation Strategy
Passenger Operation Strategy Steady Development Continuous Innovation • Build-up hub & spoke network: the • CRM: Digital technology to connect advantage of geographic location. customer with care. • Expanding Network: Partner with • Upgrade DFP program to enhance the Alliance and codeshare airlines.
Slide 20: A First for Asia! Taipei–Phoenix Route Launches this year
A First for Asia ! Taipei–Phoenix Route Launches this year • China Airlines will launch nonstop flights from Taipei to Phoenix using A350-900 aircraft, operating every Wednesday, Friday, and Sunday on December 3, 2025. • As the first Asian carrier to serve Phoenix, the route connects to the U.S. Sou
Slide 21: Alliance with Southwest Airlines to Expand U.S. Network
Alliance with Southwest Airlines to Expand U.S. Network • China Airlines has partnered with Southwest Airlines through Special Prorate Agreement to expand its North American network. • Passengers can easily connect from China Airlines’ U.S. West Coast gateways (Ontario, Los Angeles, San Francisco, S
Slide 22: Co-branded inflight catering services
Co-branded inflight catering services Collaborates with Michelin Restaurants Le Palais: Michelin 3-star Restaurant Ryugin Aoyama: Renowned Japanese Kaiseki MIPON: Michelin 1-star Taiwanese cuisine Yang Ming Spring: Michelin Green Star vegetarian Shuang Yue: Bib Gourmand Taiwanese flavors Co-bran
Slide 23: Co-branded inflight catering services
Co-branded inflight catering services • Travel Kit • Headphones Reinvented Your Next Adventure Just Got More Colorful For Premium Economy Class • MOSCHINO Premium Business Class • Premium Travel Kit : Provide with Economy Gets an Misty Grey and Sunlit Audio Upgrade Yellow. Includes a • New over-ear
Slide 24: Complimentary Wi-Fi Onboard
Complimentary Wi-Fi Onboard • Starting August 1st, available to all passengers flying on B777, A350, and A321neo . • Business & Premium Economy Class can Enjoy unlimited web browsing . Economy Class: Free messaging. • Exclusive Member Benefits: Paragon, Emerald, and Gold members enjoy unlimited brow
Slide 25: AI customer service in dozens of languages
AI customer service in dozens of languages A new platform uses semantic analysis and Originally supporting reasoning to deliver Chinese, English, and faster, more personalized Japanese, it now covers responses to complex dozens of languages — traveler queries. including German, Korean, Vietnamese, A
Slide 26: Cargo Market Update
CHINA AIRLINES “) The best carrier from Taiwan Cargo Market Update
Slide 27: 2025H1 Cargo Operational Results
2025H1 Cargo Operational Results 2025H1 cargo revenue rose 18.9% YoY, supported by strong shipments of AI and semiconductor products. Capacity, volume, and yield all increased, with North America, Europe, and Southeast Asia as key markets. 2025H1 2024H1 YoY EUR 11% Cargo revenue (TWD 100 million) 32
Slide 28: 2025H1 Cargo Revenue and Yield
2025H1Cargo Revenue and Yield Stable demand for AI servers, semiconductors, and electronics led to strong monthly revenue and yield growth from Jan to May compared with last year. However, NT dollar appreciation slightly impacted yield performance in Jun. 2024 Cgo Rev 2025 Cgo Rev 2024 Yield 2025 Yi
Slide 29: Global Cargo Market Outlook
Global Cargo Market Outlook • According to IATA, global air cargo volumes reached a historic high in 2024. Despite rising protectionism, volumes are still expected to grow slightly by 0.7% in 2025。 • Steady Air Cargo Growth Ahead: Boeing Projects 3.7% CAGR Growth driven by GDP, trade, and industrial
Slide 30: Global Air Cargo Volume is expected to grow slightly
Global Air Cargo Volume is expected to grow slightly • IATA forecasts that global air cargo volume will reach 69 million tons in 2025, a slight Global Air Cargo Volume Forecast increase (+0.5%) compared to 2024. (IATA) • Air cargo exports have continued to boost from the benefit of the strong demand
Slide 31: Taoyuan Airport (TPE) Cargo Market Snapshot & Outlook
Taoyuan Airport (TPE) Cargo Market Snapshot & Outlook • Ahead of U.S. tariff implementation, redirected and urgent orders drove cargo demand, lifting TPE’s freight volume by 8.7% YoY (Jan–May 2025), and 13.6% above 2019 levels. • TPE ranked 10th globally in 2024, maintaining strong cargo throughput.
Slide 32: Cargo Operation Strategy
Cargo Operation Strategy Take an agile freighter network adjusting strategy, and maintain operational flexibility in response to market changes China Airlines flexibly deploys 18 freighters (777F & 744F) across long and short-haul routes to boost performance. We adjusts freighter schedules and n
Slide 33: Strong Cargo Capabilities with Proven Expertise
Strong Cargo Capabilities with Proven Expertise Powered by a fleet of 18 freighters (747-400F and 777F) and extensive experience in handling special cargo, China Airlines offers reliable, ready-to-fly global freight services through its comprehensive passenger and cargo network. Vaccines live Cars A
Slide 34: Strategic Partnership with Global Cargo Sales Platform
Taiwan’s First ! Strategic Partnership with Global Cargo Sales Platform • China Airlines partnered with WebCargo and cargo.one to launch instant quote and online booking services in June. • These platforms help expand market reach, boost cargo volume, and enhance digital booking through global netwo
Slide 35: Fleet & Aircraft Maintenance Development
Fleet & Aircraft Maintenance Development
Slide 36: Fleet Plan
Fleet Plan • To address post-pandemic supply shortages, short- to mid-term capacity is maintained through additional and extended leases. • Capacity will be further boosted with the upcoming addition of 62 passenger jets and 4 freighters. Aircraft Type End of July 2025 Remark Aircraft On Order ( Inc
Slide 37: Fleet Plan
Fleet Plan China Airlines' Unique Continue to Introduce Cabin Upgrade Identity 2026 2027 2030 787-9 / 787-10 NEW A350 Retrofit A350-1000 NEW 777-9 / 777-8F NEW 37
Slide 38: A350 Cabin Retrofit to Enhance Passenger Appeal
A350 Cabin Retrofit to Enhance Passenger Appeal • China Airlines’ A350 cabins have earned global awards since their Current China Airlines A350 Business Class 2016 debut for seat design, lighting, and entertainment. • A retrofit program began on Dec 9, with Airbus leading engineering and integration
Slide 39: Aircraft Maintenance Development
Aircraft Maintenance Development • Since the post-pandemic recovery, customer line maintenance has grown steadily, covering pre-flight, transit, and overnight checks. • In 2024, over 30,000 flights grew by 12% YoY, with significant growth of maintenance. Flights of Line Maintenance Service for Reven
Slide 40: Aircraft Maintenance Development
Aircraft Maintenance Development CAL joined the P&W GTF engine maintenance network at the end of 2020, and inducted the first engine for maintenance in Q3 2023. Our target of engine maintenance growth from 20 units in 2025 to 105 by 2032. CAL GTF Engine Planned Maintenance Capacity (2024-2032) 1,400
Slide 41: Sustainability Actions & Achievements
Sustainability Actions & Achievements
Slide 42: Sustainability Efforts
Sustainability Efforts • China Airlines leads in the CAA’s 2025 SAF pilot program, signing an MOU with Formosa Petrochemical Corporation to purchase 10,000 tons of local SAF over three years. • Partnered with TSMC on a SAF business travel carbon reduction plan. • Installed solar panels at maintenanc
Slide 43: Sustainability Efforts
Sustainability Efforts • China Airlines holds regular Sustainability Committee meetings and reports to the Board of Directors , promoting ESG and gender equality through inclusive uniforms. • Partners with Xpark for marine conservation and has led beach cleanups with 2,000+ participants since 2011.
Slide 44: Strong Internal Governance & Outstanding Credit Ratings
Strong Internal Governance & Outstanding Credit Ratings • Enhanced employee well-being through wellness programs and health systems, fostering a balanced workplace. • Strategic operations and asset management recognized with high credit ratings. Top 20 Most Desired Awarded “HR Asia Best Taiwan Ratin
Slide 45: Continuously Achieving Excellence
Continuously Achieving Excellence Sustainability Report : Gold Class 8 th Selected for S&P Sustainability YearBook 6 t h Consecutive years selected for Global Corporate Sustainability 2019-2024 2016-2025 Top 5% of the Global Aviation Industry Award Ranked first among global airlines in 2023 3rd time
Slide 46: Thank you
& CHINA AIRLINES *#) The best carrier from Taiwan Thank you