China Airlines Ltd. AI Stock Analysis
China Airlines Ltd. (2610) AI Stock Analysis
China Airlines Ltd.
(TWSE:2610)
China Airlines earns a moderately above-average score, driven primarily by a materially improved financial profile: record revenue and net income, multi-year-high margins, leverage cut by more than half since 2020, and nearly NT$50B of annual operating cash flow. Key risks are decelerating revenue growth, slight operating and EBITDA margin compression, rising absolute debt, and a swing to negative free cash flow as fleet investment ramps up. Technicals are supportive, with the price above all major moving averages and positive MACD momentum while RSI remains in neutral territory. An inexpensive 9.7x P/E and a 3.84% dividend yield add valuation appeal, though the inherent cyclicality, fuel-price exposure and capital intensity of the airline industry temper the overall score.
China Airlines Ltd. (2610) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- TWD 143.13B
- Dividend Yield
- 3.57%
- Average Volume (3M)
- 22.80M
- Price to Earnings (P/E)
- 9.5
- Beta (1Y)
- 0.06
- Revenue Growth
- 15.47%
- EPS Growth
- -2.40%
- Country
- TW
- Employees
- 16,731
- Sector
- General
- Sector Strength
- 55
- Industry
- Airlines, Airports & Air Services
China Airlines Ltd. Business Overview & Revenue Model
Company Description
China Airlines, Ltd., operating with its subsidiary companies, primarily delivers air transportation services for travelers and freight, among other related offerings. Beyond its core aviation operations, the company extends various services to other...
China Airlines Ltd. Financial Statement Overview
Summary
China Airlines shows a solid post-pandemic financial profile. Revenue has risen every year since 2020 to NT$209.1B, net income hit a cycle-high NT$14.7B (7.0% net margin), and gross margin expanded to 17.8%. The balance sheet has de-risked significantly, with debt-to-equity down from 2.44x to 1.12x and equity up to NT$97.6B, while ROE remains healthy at 15.1%. Offsetting this, revenue growth has decelerated to 2.6%, operating margin slipped to 10.0% and EBITDA margin to 24.0%, total debt rose to NT$109.6B, and heavy fleet-related capex pushed free cash flow to negative NT$4.3B from positive NT$29.4B. Operating cash flow remains strong at NT$49.4B but has declined for a third straight year.
Income Statement
76PositiveBalance Sheet
70PositiveCash Flow
60Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 225.85B | 209.14B | 203.88B | 184.82B | 150.72B | 138.84B |
| Gross Profit | 36.87B | 37.23B | 34.16B | 23.83B | 11.37B | 23.35B |
| EBITDA | 49.15B | 50.14B | 50.63B | 42.15B | 35.38B | 43.66B |
| Net Income | 13.24B | 14.70B | 14.38B | 6.82B | 2.25B | 9.38B |
Balance Sheet | ||||||
| Total Assets | 391.03B | 354.82B | 327.38B | 291.24B | 294.41B | 294.72B |
| Cash, Cash Equivalents and Short-Term Investments | 55.72B | 59.73B | 68.34B | 34.66B | 41.32B | 58.45B |
| Total Debt | 124.11B | 109.64B | 97.53B | 94.00B | 107.64B | 125.27B |
| Total Liabilities | 285.68B | 252.28B | 236.83B | 213.76B | 221.96B | 217.52B |
| Stockholders Equity | 100.04B | 97.58B | 86.00B | 74.59B | 70.00B | 74.04B |
Cash Flow | ||||||
| Free Cash Flow | -13.46B | -4.31B | 29.45B | 26.66B | 19.89B | 35.16B |
| Operating Cash Flow | 53.93B | 49.41B | 54.28B | 55.85B | 46.85B | 49.89B |
| Investing Cash Flow | -67.79B | -50.83B | -7.27B | -30.66B | -20.18B | -16.67B |
| Financing Cash Flow | 13.48B | -6.81B | -12.13B | -29.81B | -36.69B | -15.27B |
China Airlines Ltd. Peers Comparison
Overall Rating
- TW:261071Outperform
TW:264569Neutral
TW:263767Neutral
TW:260964Neutral
TW:263357Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TW:2610 | 71Outperform | TWD 140.06B | 9.46 | ― | 3.57% | 15.47% | -2.40% |
| TW:2645 | 69Neutral | TWD 61.24B | 20.85 | ― | 3.06% | 10.42% | 77.82% |
| TW:2637 | 67Neutral | TWD 73.75B | 1.32 | ― | 3.54% | 10.33% | 115.35% |
| TW:2609 | 64Neutral | TWD 203.24B | 13.86 | ― | 3.44% | 3.49% | 2.44% |
| TW:2633 | 57Neutral | TWD 143.24B | 21.07 | ― | 4.52% | 5.19% | 7.97% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TW:2610 | China Airlines Ltd. | 22.80 | 3.85 | 20.32% | |
| TW:2609 | Yang Ming Marine Transport Corp. | 58.20 | 6.16 | 11.85% | |
| TW:2633 | Taiwan High Speed Rail Corporation | 25.45 | -1.67 | -6.15% | |
| TW:2637 | Wisdom Marine Lines Co., Limited. | 98.80 | 38.72 | 64.44% | |
| TW:2645 | Evergreen Aviation Technologies Corporation | 163.50 | 25.44 | 18.43% | |
| TW:2646 | STARLUX AIRLINES CO., LTD. | 20.05 | -3.45 | -14.68% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 09, 2026