Air China Q3 2026: Revenue Climbs 5.35%, but Fuel-Driven Cost Surge Slashes Profit by 92.64%

Air China Limited released its unaudited third-quarter 2026 report, highlighting a strong rebound in topline growth yet a sharp deterioration in earnings, mainly attributed to higher jet-fuel costs.

Financial Performance – Q3 2026 • Revenue reached RMB 51.70 billion, up 5.35% year on year. • Total profit declined to RMB 85.69 million, a 97.93% YoY contraction. • Net profit attributable to shareholders fell 92.64% to RMB 270.60 million. • Core earnings (excluding non-recurring items) dropped 98.28% to RMB 62.75 million. • Basic and diluted EPS were both RMB 0.02, down 90.91% YoY.

Nine-Month Results (Jan–Sep 2026) • Revenue grew 8.58% to RMB 140.96 billion. • The Group posted a total loss of RMB 3.05 billion versus a profit of RMB 1.36 billion a year earlier. • Net loss attributable to shareholders stood at RMB 2.02 billion, against a profit of RMB 1.87 billion in the prior-year period. • Operating cash inflow decreased 24.80% to RMB 25.62 billion.

Key Cost Driver Management cited a “steep rise in oil price” as the primary factor behind the sharp decline in profitability, despite revenue growth and ongoing efficiency initiatives.

Balance Sheet and Liquidity • Total assets grew 2.84% since end-2025 to RMB 352.80 billion. • Shareholders’ equity increased 40.67% to RMB 59.86 billion, reflecting a share issuance to specific investors. • Cash and bank balances fell to RMB 11.69 billion from RMB 15.86 billion at 31 Dec 2025. • Net cash and cash equivalents decreased to RMB 10.25 billion, down 57.65% from the 2025 year-end level.

Operating Metrics (Air China & Affiliated Airlines) – Q3 2026 • Available Seat Kilometres (ASK) rose 5.1% YoY to 103.24 billion. • Revenue Passenger Kilometres (RPK) expanded 9.8% to 88.79 billion. • Passenger load factor improved by 3.7 percentage points to 86.0%. • Cargo and mail load factor edged up 0.4 ppt to 42.5%. • Passengers carried increased 7.3% to 45.88 million.

Shareholding Structure As of 30 September 2026, Air China had 179,259 ordinary shareholders. China National Aviation Holding Corporation Limited remained the largest shareholder with a 40.67% stake, followed by Cathay Pacific Airways Limited at 12.85%.

Audit Status The third-quarter financial statements are unaudited, and no non-standard audit opinions were issued.