Xin Lang Cai Jing·2025-09-06 08:25Core Viewpoint - The company reported a narrowing net loss in 1H25, with revenue showing slight growth, indicating potential recovery in the industry despite ongoing challenges [1][4]. Financial Performance - In 1H25, the company achieved revenue of 80.757 billion yuan, a year-on-year increase of 1.6%, while the net loss attributable to shareholders was 1.806 billion yuan, a reduction of 35.1% compared to the previous year [1][4]. - For 2Q25, revenue reached 40.734 billion yuan, reflecting a 3.2% year-on-year growth, with a net profit of 238 million yuan, a significant turnaround from a net loss of 1.108 billion yuan in 2Q24 [1][2][3]. Operational Metrics - The company maintained stable supply growth in 2Q25, with ASK (Available Seat Kilometers) and RPK (Revenue Passenger Kilometers) increasing by 4.1% and 7.0% respectively, and passenger load factor improved by 2.2 percentage points to 81.2% [2]. - Domestic routes returned to positive growth with a 1.1% increase, while international ASK growth reached 12.4%, recovering to 93% of 1Q19 levels [2]. Cost and Profitability - The average price of aviation fuel decreased by 17% year-on-year in 2Q25, leading to a 4.4% reduction in unit cost per seat kilometer and a gross margin increase of 3.6 percentage points to 5.4% [3]. - The company recorded an investment income of 660 million yuan in 2Q25, a 13.4% increase, primarily from contributions by Cathay Pacific [3]. Future Outlook - The company plans to inject up to 8.16 billion yuan into Shenzhen Airlines, which is expected to enhance its capital structure and competitive position [4]. - Profit forecasts for 2025-2027 have been revised downwards due to weak domestic ticket prices, with projected net profits of 771 million yuan, 5.246 billion yuan, and 7.965 billion yuan respectively [5].