Spring Airlines (601021) H1 2024 earnings summary

Executive summary

• Achieved revenue of RMB 9.88 billion and net profit attributable to shareholders of RMB 1.36 billion in H1 2024, up 22.97% and 62.28% year-over-year, respectively.

• Passenger traffic, load factor, and operational metrics all exceeded pre-pandemic 2019 levels.

• Maintained industry-leading cost control and high direct sales ratio, with 97.3% of tickets sold via e-commerce channels.

• Continued expansion of domestic and international routes, with 127 aircraft in operation and 222 routes as of June 2024.

• No interim dividend or capital increase from reserves proposed for the half-year.

Financial highlights

• Revenue rose 22.97% year-over-year to RMB 9.88 billion; net profit attributable to shareholders increased 62.28% to RMB 1.36 billion.

• Operating cash flow was RMB 3.21 billion, down 5.77% year-over-year.

• Basic and diluted EPS were RMB 1.39, up 61.63% year-over-year.

• Gross margin improved, with cost per available seat kilometer (CASK) down 0.6% year-over-year.

• Non-recurring items contributed RMB 5.3 million to net profit.

Outlook and guidance

• Expects continued steady growth in domestic passenger demand and further recovery in international routes in H2 2024.

• Industry-wide efficiency and profitability indicators are forecast to surpass 2019 levels for the full year.

• Will focus on cost control, digitalization, and product innovation to maintain competitiveness.