Core Viewpoint - Hainan Airlines Holdings (600221) reported a turnaround in profitability for the first half of 2025, achieving a net profit of 0.57 billion yuan, with a revenue increase of 4.22% year-on-year to 33.083 billion yuan [1] Company Performance - In the first half of 2025, the company capitalized on the recovery of international routes, launching 12 new international routes and planning to increase international flights by 30% compared to 2019 by the end of the year [1] - The company achieved a revenue passenger kilometer (RPK) of 64,480.17 million kilometers, a year-on-year increase of 12.05%, with international RPK growing significantly by 68.68% [1] - The total available seat kilometers (ASK) reached 77,921.27 million kilometers, up 11.72% year-on-year, with international ASK increasing by 60.09% [1] Industry Overview - The civil aviation industry showed significant growth, with total transport turnover reaching 783.5 billion ton-kilometers, passenger transport volume at 370 million, and cargo mail transport volume at 4.784 million tons, representing year-on-year increases of 11.4%, 6%, and 14.6% respectively [1] - The domestic route network is being optimized, with the company's domestic flight schedule accounting for 9% of the industry total, and a 6% increase compared to the summer-autumn season of 2019 [2] - The company maintains a leading position at several key hub airports, with its flight schedule in Haikou ranking first in the industry [2] Future Outlook - Analysts suggest that the company is likely to enter a new profit cycle, supported by refined management, cost reductions, and favorable policies from the Hainan Free Trade Port [2] - The high passenger load factor, improving supply-demand dynamics, relatively low fuel costs, and pricing flexibility due to "anti-involution" policies are expected to enhance the company's profitability [2]