China Airlines Ltd. (2610) AI Stock Analysis

China Airlines Ltd.

(TWSE:2610)

Select Model

Rating:65Neutral

Price Target:TWD 23.00▲(0.88% Upside)

Action:initiatedcoverage

Date:11/10/26

The overall score of 65 reflects a company with strong operational recovery and attractive valuation, offset by significant cash flow concerns. The primary strength is the low P/E ratio and solid dividend yield, supported by a healthy technical trend. The most significant risk is the negative free cash flow driven by high capital expenditures, which pressures the financial health score and tempers the overall rating.

Positive Factors

Revenue and profit recoveryThe strong 2025 revenue rebound and restored profitability indicate meaningful recovery in the airline’s operating base after weaker prior years. Sustained margins would improve internal funding capacity, support fleet and network investment, and strengthen competitiveness over the next several quarters.

Negative Factors

Meaningful leverage in a cyclical industryDebt remains high relative to equity for an airline whose earnings can fluctuate with the cycle. This leverage may increase interest and refinancing pressure, constrain investment choices, and reduce financial flexibility if operating conditions weaken over the next several months.

China Airlines Ltd. (2610) vs. SPDR S&P 500 ETF (SPY)

Market Cap: TWD 141.59B
Dividend Yield: 3.47%
Average Volume (3M): 24.22M
Price to Earnings (P/E): 9.7
Beta (1Y): 0.05
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

Financial performance is mixed. The income statement shows strong revenue growth and improved profitability, and the balance sheet has deleveraged significantly. However, the cash flow score is low due to sharply negative free cash flow from heavy capital expenditures, creating a reliance on existing liquidity. The overall profile is of a recovering company with a major cash flow risk.

Income Statement

78Positive

Balance Sheet

65Positive

Cash Flow

45Neutral

Financial statement breakdown
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

UnderperformOutperform

Sector (55)

Financial Indicators

TW:2610 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TW:2645	69Neutral	TWD 61.24B	20.79	―	3.05%	10.42%	77.82%
TW:2637	67Neutral	TWD 73.75B	1.29	―	3.60%	10.33%	115.35%
TW:2610	65Neutral	TWD 140.06B	9.67	―	3.47%	15.47%	-2.40%
TW:2609	64Neutral	TWD 203.24B	7.33	―	3.38%	3.49%	2.44%
TW:2633	57Neutral	TWD 143.24B	20.74	―	4.55%	5.19%	7.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

TW:2610 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TW:2610	China Airlines Ltd.	22.80	4.09	21.87%
TW:2609	Yang Ming Marine Transport Corp.	58.20	6.64	12.89%
TW:2633	Taiwan High Speed Rail Corporation	25.60	-1.52	-5.59%
TW:2637	Wisdom Marine Lines Co., Limited.	95.30	35.70	59.89%
TW:2645	Evergreen Aviation Technologies Corporation	164.50	28.89	21.30%
TW:2646	STARLUX AIRLINES CO., LTD.	19.80	-3.65	-15.57%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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

China Airlines Ltd. AI Stock Analysis