ZHONGTAI SECURITIES·2026-04-01 04:50Investment Rating - The investment rating for China Eastern Airlines is upgraded to "Accumulate" [3] Core Views - The company achieved a significant improvement in operating performance in 2025, with operating revenue reaching 139.9 billion yuan, a year-on-year increase of 5.92%. The net loss attributable to shareholders was reduced to 1.95 billion yuan, a substantial decrease from the previous year [6] - The company plans to expand its fleet to 855, 908, and 914 aircraft in 2026, 2027, and 2028 respectively, indicating a growth strategy in response to market demand [6] - The report highlights that the company has optimized its domestic and international route networks, leading to record-high passenger and cargo transport volumes [6] Financial Summary - For 2024A, the projected operating revenue is 132.12 billion yuan, with a growth rate of 16% year-on-year. By 2028E, the revenue is expected to reach 180.66 billion yuan, with a growth rate of 4% [3] - The net profit attributable to shareholders is forecasted to turn positive in 2026E, reaching 880 million yuan, and further increasing to 6.76 billion yuan by 2028E [3] - The earnings per share (EPS) is expected to improve from -0.19 yuan in 2024A to 0.31 yuan in 2028E [3] Operational Metrics - The average passenger load factor improved to 85.86% in 2025, an increase of 3.04 percentage points year-on-year [6] - The company opened 24 new international routes in 2025, bringing the total to 249 international routes, making it the domestic airline with the most international destinations [6] - The report notes a significant decrease in seat kilometer fuel costs by 10.05% year-on-year, contributing to improved profitability [6]