China Eastern Airlines Co., Ltd. (00670) announced interim results. Shareholders' losses of 2,768 billion yuan narrowed by 55.77% year-on-year

According to the Zhitong Finance App, China Eastern Airlines Co., Ltd. (00670) announced its 2024 interim results. The group achieved revenue of 64,199 billion yuan (RMB, same below) during the period, an increase of 29.67% over the previous year; loss attributable to shareholders was 2,768 billion yuan, a year-on-year decrease of 55.77%; and the basic loss per share was 0.12 yuan.

The announcement said that in the face of a complex and severe external environment, the entire group is united and forge ahead to promote various tasks such as safe operation, production and operation, cost control, brand service, reform and innovation in an integrated manner to stabilize safety, improve efficiency, implement reforms and promote transformation, and strive to write the Group's “rise to the East and set sail again” and accelerate a new chapter of high-quality development. In the first half of 2024, the Group's total transportation turnover and passenger traffic increased by 54.31% and 30.41%, respectively, to 110.60% and 105.83% in the same period in 2019. The passenger occupancy rate increased 9.44 percentage points year on year, and production and operation rebounded.

The Group has always regarded safety as a top priority, and has taken practical actions to ensure “two absolute safety”. In the face of a sharp increase in flight volume and a complex and changing operating environment, we have resolutely adhered to the bottom line of safe operation, and the overall safety situation of the Group is stable. Continuously strengthen the construction of a safety management system. The Group revised and improved 15 systems, including the Safety Committee's working rules and production safety management measures. Concentrate on carrying out special remediation of hidden risks. Initiate a three-year campaign to tackle the root causes of production safety, and carry out special supervision of key units. Strengthen the construction of safety culture and capacity improvement. Launch a “Safety Education Day”, promote the annual flight training plan in an orderly manner, and focus on building a team of “strong political, excellent business, excellent work style, and strict discipline” pilots. In the first half of 2024, the Group completed 1.283 million hours of safe flights and 507,600 take-offs, an increase of 22.72% and 13.66%, respectively, over the previous year.

Using hub construction as a foothold, we continuously optimize and improve the layout of the aviation network. The Group served the construction of the Shanghai International Shipping Center and actively built a world-class air transport enterprise. The Group's share in Shanghai's Hongqiao and Pudong markets increased by about 1.6 percentage points over the same period last year. Continuously improve the transit volume and transit efficiency of core hubs. In the first half of 2024, the Group transferred 2.34 million passengers at Shanghai Pudong International Airport, an increase of 31.30% over 2019, leading the domestic hub market. Focusing on the “four beams and eight pillars” key market, the number of domestic express lines increased to 36, and the “Sky Corridor” is beginning to take shape. By optimizing the flight network and lengthening the flight distance, the average flight distance of summer and autumn flights after season change increased by 8.90% year-on-year. Using international recovery as a starting point, we will vigorously improve the recovery rate of international flights. Launched a number of new “Belt and Road” international routes, including Shanghai-Riyadh, Shanghai-Marseille, and Xi'an-Budapest, to create 3 international express brands, including Shanghai-Singapore, Shanghai-Bangkok, and Kunming-Bangkok. Promote joint ventures with Etihad Airways, etc., and add and expand code-sharing and SPA cooperation with JAL, Virgin Atlantic, and EgyptAir. In the first half of 2024, the Group's international market sales and passenger revenue all recovered to more than 90% of 2019. Flight volume in some international markets such as Europe, Southeast Asia, and Australia has exceeded the same period in 2019, and the overall international route recovery rate is far ahead of the industry average. Continuously optimize sales strategies with revenue management and control as the key point. Further refine fare management, optimize controls such as pre-sale strategies, business class fares, intermodal fares, team sales, etc., and continuously increase sales revenue. Implement the Yangtze River Delta integrated strategic plan and launch Yangtze River Delta “full time and space” and “regional access” route products. Enrich “Flight+Cultural and Creative” premium products, launch ancillary products such as “front row seat” standby upgrade vouchers, and expand sales of ancillary products and premium products. Use abdominal compartment revenue control as a focus to increase airliner abdominal revenue. Seizing the opportunity of strong cargo demand and coordinating China Eastern Airlines logistics to develop the cargo market, passenger aircraft cargo and mail turnover increased 88.83% year on year, achieving freight revenue of 2,371 billion yuan, an increase of 59.45% year on year.