Air China Posts 2025 Loss, Halts Dividend Amid Cost Pressures

Air China ( (HK:0753) ) has issued an update.

Air China reported 2025 revenue of RMB171.5 billion, up modestly from a year earlier, but swung to a net loss attributable to equity shareholders of RMB1.79 billion as rising employee, maintenance and depreciation costs, goodwill impairment and higher tax charges outweighed operating gains. The board has proposed no profit distribution for 2025, underscoring continued earnings pressure and a cautious stance on capital returns as the airline navigates high financing costs, volatile fuel prices and an uneven recovery in air travel, factors that may weigh on investor sentiment and delay balance sheet repair.

The results highlight persistent structural cost challenges despite slightly higher revenue and improved associate contributions, with finance costs still significant and basic loss per share widening to RMB0.11 from RMB0.01. This performance may constrain Air China’s flexibility to invest aggressively in fleet and network expansion relative to peers, and signals that shareholders and creditors should brace for a prolonged normalization period before profitability and dividends can be restored.

The most recent analyst rating on (HK:0753) stock is a Hold with a HK$7.00 price target. To see the full list of analyst forecasts on Air China stock, see the HK:0753 Stock Forecast page.

More about Air China

Air China is a major Chinese flag carrier operating in the commercial aviation industry, offering passenger and cargo air transport services across domestic and international routes. Listed in Hong Kong, the airline competes with other state-backed and private carriers in a market still recovering from the pandemic and facing cost volatility, regulatory constraints, and fluctuating travel demand.

Average Trading Volume: 30,833,365

Technical Sentiment Signal: Strong Sell

Current Market Cap: HK$123.9B

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