Ge Long Hui·2025-11-01 12:53Core Viewpoint - China Eastern Airlines reported strong financial performance for Q3 2025, with significant year-on-year growth in both revenue and net profit, indicating a robust recovery in operations and market demand [1][2]. Financial Performance - In Q3 2025, the company achieved operating revenue of 39.592 billion yuan, a year-on-year increase of 3.14% [2]. - The net profit attributable to shareholders reached 3.534 billion yuan, up 34.37% year-on-year, while the net profit after deducting non-recurring items was 3.164 billion yuan, reflecting a 30.21% increase [1][2]. - For the first three quarters of 2025, total revenue was 106.414 billion yuan, a 3.73% increase year-on-year, and the net profit attributable to shareholders was 2.103 billion yuan, marking a turnaround from a loss of 0.138 billion yuan in the same period last year [1][2]. Operational Data - The company has been actively enhancing its hub construction and implementing its "Three Flights" strategy, leading to improved operational metrics [1]. - In Q3 2025, the overall Available Seat Kilometers (ASK) increased by 6.02% year-on-year, while Revenue Passenger Kilometers (RPK) rose by 8.95%, resulting in a passenger load factor increase of 2.41 percentage points [1]. - Domestic operations showed growth with domestic ASK up 3.36% and RPK up 6.04% year-on-year, while international operations saw a recovery with international ASK at 113.63% of the 2019 level, reflecting a 12.85% increase year-on-year [1][2]. Fleet Size - As of Q3 2025, the total fleet size reached 820 aircraft, representing a 16.15% increase compared to the same period in 2019 and a 3.80% increase year-on-year [2]. Investment Analysis - The recovery of international routes is ahead of expectations, supported by increasing passenger flow in Shanghai and positive ticket pricing trends post-National Day holiday [3]. - Adjustments to net profit forecasts for 2025-2027 are made, with expected profits of 1.942 billion yuan, 9.043 billion yuan, and 14.922 billion yuan respectively, reflecting a more conservative outlook due to lower ticket prices than initially anticipated [3]. - The market is expected to see continued improvement in operations, with a projected price-to-earnings ratio of 12x for 2026 and 7x for 2027, which remains below historical valuation averages for major airlines [3].