Juneyao Airlines (603885) H2 2024 earnings summary

Executive summary

• 2024 revenue reached RMB 22.10 billion, up 9.95% year-over-year, with net profit attributable to shareholders at RMB 914 million, a 17.52% increase compared to 2023.

• Passenger volume grew to 27.66 million, with international routes up 141% and cargo volume up 29%.

• Cash dividend of RMB 0.1 per share proposed, with total cash dividends and buybacks accounting for 78.13% of net profit.

• The company completed major aircraft leasing acquisitions and continued to expand its international and domestic route network.

• Audit opinion was unqualified, with no material deficiencies in internal controls.

Financial highlights

• Operating income: RMB 22.10 billion, up 9.95% year-over-year.

• Net profit attributable to shareholders: RMB 914 million, up 17.52% year-over-year.

• Basic and diluted EPS: RMB 0.42, up from RMB 0.35 in 2023.

• Operating cash flow: RMB 7.72 billion, up 21.09% year-over-year.

• Gross margin for passenger business: 12.74%; cargo business: 39.34%.

Outlook and guidance

• 2025 industry targets: 1,610 billion ton-km turnover, 780 million passengers, 9.5 million tons cargo, with further profitability improvement expected.

• Focus on internationalization, digital transformation, green initiatives, and dual-brand, dual-hub strategy (Shanghai and Guangzhou).

• Plans to introduce 3 new aircraft in 2025, with a three-year capex plan of USD 450 million for fleet and equipment.

• Emphasis on safety, service quality, digitalization, and international network expansion.