Spring Airlines (601021) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached RMB 6.10 billion, up 0.48% year-over-year; net profit attributable to shareholders was RMB 1.24 billion, down 32.37% year-over-year.

• For the first nine months, revenue totaled RMB 15.98 billion, up 13.29% year-over-year; net profit attributable to shareholders was RMB 2.60 billion, down 2.73% year-over-year.

• Decline in Q3 net profit mainly due to lower gross margin.

Financial highlights

• Q3 basic and diluted EPS were RMB 1.27, down 32.45% year-over-year; nine-month EPS was RMB 2.67, down 2.55%.

• Operating cash flow for the first nine months was RMB 5.51 billion, down 9.59% year-over-year.

• Total assets at quarter-end were RMB 42.87 billion, down 3.10% from year-end 2023.

• Shareholders’ equity increased 12.48% to RMB 17.72 billion compared to year-end 2023.

Key financial ratios and metrics

• Weighted average ROE for the nine months was 15.45%, down 2.45 percentage points year-over-year.

• Gross margin decline was the main driver of profit decrease in Q3.