The first regional airline stock has made a strong reversal!

Since entering 2023, the civil aviation industry has accelerated its recovery, and all civil aviation has achieved significant reductions in losses.

Source: Wings of Civil Aviation Since entering 2023, the civil aviation industry has accelerated its recovery, and all civil aviation has achieved significant reductions in losses.

However, the performance of various airlines has also diverged.

As one of the top three private aviation companies and the largest regional airline in my country, China Airlines has encountered huge challenges in its recovery.

On the one hand, the development of regional aviation in my country\’s civil aviation industry has been relatively difficult. Ground transportation in the eastern region is developed, market demand in the western region is limited, and models such as trunk-branch connections and hub route networks are not yet mature. Regional aviation is facing tremendous pressure.

On the other hand, due to the characteristics of regional aviation, most of them are in the central and western regions, old, young, border and poor areas, and some areas with inconvenient transportation.

China Airlines cooperates with local governments, regional airports and other local governments when operating regional routes. With the tightening of local finances in recent years, there is still a question mark as to whether China Airlines\’ cooperation model can continue.

Under this circumstance, China Xia Airlines suffered a net loss of 965 million yuan in 2023, becoming the only one among the four listed private airlines to lose money.

However, there are various signs that the original China Airlines may have made a strong comeback.

On April 23, 2024, China Airlines released its financial reports for the first quarter of 2023 and 2024 at the same time.

It is obvious that China Airlines chose the same day to release its annual report and quarterly report carefully.

After all, for the capital market, what everyone values ​​​​is the future, and more importantly, the trend.

In the first quarter of 2024, China Airlines: achieved operating income of 1.616 billion yuan, a year-on-year increase of 54.67%.

Net profit attributable to the parent company was 24.67 million yuan, a year-on-year decrease in losses and an increase in profits of 300 million yuan.

Revenue increased by more than 50% and profit increased by 300 million. For an airline of China Airlines\’ size, it can be described as a strong turnaround.

Today, China Airlines\’ stock also made a strong reversal and hit the daily limit! Brother Yi once said: China Xia Airlines\’ unique regional model is also indispensable in our country. Now it is vigorously developing branch-line and through-line models, which still has great potential in the future.

China Airlines currently has a fleet of 70 aircraft, including: 38 Bombardier CRJ900 aircraft, 24 Airbus A320 aircraft, and 8 COMAC ARJ aircraft. As the only large-scale regional airline in China, China Airlines: its route network covers 83 regional destinations. , accounting for 38% of the country\’s regional route points; there are 168 routes in operation, including 166 regional routes, accounting for 99%, and 150 solo routes, accounting for 89%.

In 2023, China Airlines transported 6.409 million passengers, a year-on-year increase of 124.79%; the passenger load factor was 75.36%, a year-on-year increase of 11.63 percentage points.

With the main operating base in Chongqing as the core, China Airlines has established a southwest hub around the Guiyang base and Chengdu overnight point; a Xinjiang hub around the Korla base, Aksu and Kashgar overnight points; a central and northern hub around the Xi\’an base; and a Hohhot base and Baotou overnight point. Establish the Inner Mongolia hub; establish the northern hub around the Dalian base and Tianjin overnight point; establish the southeast hub around the Quzhou base and Wuhu overnight point.

China Airlines has basically established a nationwide regional route network.

However, the development of regional aviation in my country is inherently difficult. As the most outstanding practitioner, in addition to its own efforts, China Airlines also needs strong support from all parties.

I wish China Airlines can continue to fly into the regional aviation sky.

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