Spring Airlines (601021) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 reached ¥10.30 billion, up 4.35% year-over-year; net profit attributable to shareholders was ¥1.17 billion, down 14.11% year-over-year due to a high base effect from deferred tax asset recognition in 2024.

• Operating cash flow decreased 13.15% year-over-year to ¥2.79 billion, mainly due to increased maintenance prepayments.

• The company maintained a high load factor (90.5%) and expanded its fleet to 133 aircraft, with international capacity nearly restored to pre-pandemic levels.

• Interim cash dividend of ¥0.43 per share (totaling ¥417.6 million) was approved, representing 35.74% of H1 net profit.

Financial highlights

• Operating income: ¥10.30 billion (+4.35% YoY); total profit: ¥1.54 billion (+2.59% YoY).

• Net profit attributable to shareholders: ¥1.17 billion (-14.11% YoY); basic EPS: ¥1.20 (-13.67% YoY).

• Operating cash flow: ¥2.79 billion (-13.15% YoY); total assets: ¥46.23 billion (+5.47% from 2024 year-end).

• Gross margin and profitability declined due to lower ticket yields and a high base for tax benefits in 2024.

Outlook and guidance

• The company expects continued recovery in international routes, especially Japan and Korea, and will flexibly adjust capacity in response to market changes.

• Domestic demand remains robust, but pricing pressure persists; management will focus on yield management and cost control.

• The company will continue to expand its digital and ancillary services to drive revenue growth.