China Southern Airlines (CSN) reported operating revenue of RMB94.68 billion for the six months ended 30 June 2026, up 9.72 % year on year, propelled by stronger passenger traffic and an 18.65 % rise in cargo and mail revenue.
Net loss attributable to shareholders widened to RMB3.70 billion from RMB1.53 billion a year earlier, driven mainly by a 25.20 % surge in flight-operation expenses to RMB50.91 billion amid higher jet-fuel costs and volatile oil prices. Total operating expenses climbed 17.01 % to RMB99.33 billion, pushing the cost-to-revenue ratio to 104.91 % (2025: 98.37 %).
Traffic metrics improved modestly. Revenue passenger kilometres (RPK) increased 3.29 % to 163.33 billion, while available seat kilometres (ASK) expanded 4.05 % to 192.50 billion, trimming passenger load factor by 0.62 ppt to 84.85 %. International RPK advanced 13.29 %, offsetting a slight 0.27 % dip in domestic RPK. Passengers carried totalled 83.17 million, essentially flat year on year. Cargo volume reached 0.94 million tonnes, up 0.25 %.
Cash generated from operations fell 10.48 % to RMB10.45 billion. Net cash used in investing activities ballooned to RMB15.85 billion, reflecting higher aircraft and equipment purchases, while financing activities contributed a net inflow of RMB4.59 billion, buoyed by increased borrowings and issuance of ultra-short-term financing bills.
Total assets stood at RMB363.93 billion (+3.96 %), but equity attributable to shareholders declined 15.27 % to RMB30.33 billion as losses eroded reserves. The debt-to-asset ratio rose to 85.85 %. Interest-bearing liabilities reached RMB254.77 billion, 86.70 % of which is denominated in renminbi.
The carrier operated a fleet of 973 aircraft at 30 June 2026, with 19 deliveries and 18 retirements during the period. Capital commitments totalled RMB172.74 billion, predominantly for future aircraft and engine purchases.
To strengthen its balance sheet, the company plans an A-share private placement of up to RMB15.00 billion, with its parent China Southern Air Holding committing RMB5–10 billion.
Management highlighted macroeconomic resilience, ongoing safety initiatives and cost-control measures, but warned of persistent fuel-price volatility and industry-wide competition. No interim dividend was declared.