Hainan Airlines Holding (600221) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 31.74 billion, up 14.86% year-over-year; net loss attributable to shareholders narrowed to RMB -636 million from RMB -1.61 billion.

• Passenger volume rose 13.71% to 32.36 million, cargo/mail volume surged 39.28% to 230,820 tons.

• Operating cash flow improved 10.39% to RMB 6.32 billion.

• The company operated 343 aircraft as of June 30, 2024.

Financial highlights

• Operating income: RMB 31.74 billion (+14.86% YoY); transportation income: RMB 29.33 billion (+16.54% YoY).

• Net loss attributable to shareholders: RMB -636 million (vs. -1.61 billion YoY).

• Adjusted net loss (excluding non-recurring items): RMB -870 million (vs. -2.31 billion YoY).

• Basic and diluted EPS: RMB -0.0147 (vs. -0.0372 YoY).

• Gross margin improved; operating costs rose 18.75% to RMB 29.44 billion.

Outlook and guidance

• Domestic macroeconomic stability and policy support expected to sustain demand; full-year GDP growth forecast at 5.2%.

• Focus on core markets (Hainan, Beijing, Guangzhou, Shenzhen, etc.), network optimization, and product innovation.

• Continued cost control and digital transformation to enhance profitability.