Aviation Industry: approx. 85%
Freight and Logistics: approx. 10%
Other Services: approx. 5%

TOP 3 Markets:
China: approx. 60%
USA: approx. 15%
Europe: approx. 10%

Air China Limited generates the majority of its revenue from the aviation industry, especially through passenger flights. The freight and logistics sector also contribute significantly to the revenue, while other services make up a smaller share.

The Chinese market is the largest and most important for Air China, driven by high demand for domestic flights and strong economic development in the region. The USA and Europe are also significant markets characterized by international flights and business travel.

Production Sites: Mainly in China

Air China Limited is primarily an airline and not a typical manufacturing operation. The company provides passenger and cargo flight services. The "production" in this context refers to the provision of flight services, mainly operated from its hubs in China, including Beijing, Chengdu, and Shanghai.

For the maintenance and technical support of its fleet, Air China operates various technical facilities in China. The aircraft themselves are sourced from major aircraft manufacturers such as Boeing and Airbus, which have their production facilities in the USA and Europe.

Fleet Modernization: Investments in new, fuel-efficient aircraft

International Expansion: Expansion of routes in Europe and North America

Digital Transformation: Improvement of customer experience through technology

Air China Limited is pursuing a multi-pronged growth strategy. A key component is fleet modernization, where the company invests in new, fuel-efficient aircraft to reduce operating costs and environmental impact. This is crucial to remain competitive and meet regulatory requirements.

Another focus is on international expansion. Air China plans to strengthen its presence in Europe and North America by opening new routes and expanding existing connections. This strategy aims to gain market share in lucrative international markets.

Additionally, the company is focusing on digital transformation to enhance customer experience. By leveraging new technologies, booking processes are to be optimized and personalized services offered, aiming to increase customer satisfaction and loyalty.

Main Imported Raw Materials:

• Aircraft fuel
• Aircraft and spare parts

Main Supplier Countries:

• Aircraft fuel: Russia, Saudi Arabia, United Arab Emirates
• Aircraft and spare parts: USA, France, Germany

Air China Limited mainly imports aircraft fuel, which is essential for the operation of their fleet. The main supplier countries for this raw material are Russia, Saudi Arabia, and the United Arab Emirates, as these countries are among the largest producers of crude oil from which the fuel is refined.

In addition, Air China imports aircraft and spare parts needed for the maintenance and expansion of their fleet. These are mainly sourced from the USA, France, and Germany, as leading aircraft manufacturers such as Boeing and Airbus are based there. These countries are known for their advanced aviation technology and the high quality of their products.

Market share in China: 20% (estimated for 2025)
Fleet size: Over 700 aircraft (2024)
Network coverage: More than 200 destinations worldwide (2024)

Air China Limited has a significant competitive advantage, especially in the Chinese market, where it holds an estimated market share of about 20%. This is supported by their strong fleet size of over 700 aircraft, allowing the company to operate an extensive network of over 200 destinations worldwide.

Air China's competitive advantage also stems from its strategic positioning as China's national airline, granting them preferred access to key airports and flight routes. Additionally, the company benefits from a strong brand presence and loyalty within China, further reinforced by their membership in the Star Alliance.

Overall, Air China remains well-positioned in the international competition due to its extensive resources, strategic alliances, and its position in the domestic market.

Institutional Investor Share: approximately 45% (estimated for 2025)
Insider Buys/Sells: No significant transactions in the last quarter (2025)

The institutional investor share in Air China Limited is estimated to be around 45%. This indicates a strong interest from institutional investors in the stock, suggesting confidence in the company's long-term performance.

There were no significant insider buys or sells in the last quarter of 2025, indicating that the management currently does not expect significant changes in the stock price or that there are no internal information that would lead to a change in ownership.

Market share of Air China Limited: approximately 14% (2025, estimated)

Main competitors and their market shares:

1. China Southern Airlines: approximately 17%
2. China Eastern Airlines: approximately 16%
3. Hainan Airlines: approximately 10%
4. Spring Airlines: approximately 5%
5. Shenzhen Airlines: approximately 4%

Moat of Air China Limited:

Air China Limited has a significant moat due to its state support and strong position in international air travel, especially on routes between China and Europe as well as North America. These strategic routes provide Air China with an advantage over some domestic competitors that are more focused on the domestic market.

Comparison with other companies:

China Southern Airlines and China Eastern Airlines also hold strong market positions, reinforced by extensive domestic networks and strategic alliances. Both companies benefit from a broad fleet base and dense route network, giving them a robust moat in the domestic market.

Hainan Airlines and Spring Airlines have established themselves through niche strategies and cost-efficient operating models, providing them with advantages in certain segments.

Overall, Air China has a solid moat, especially in the international segment, but faces direct competition from domestic market leaders, intensifying the competition. The moat of Air China is significant but not insurmountable, as competitors also hold strong strategic positions.

Revenue Growth: 8.5% (2024) Profit Growth: 10.2% (2024) Passenger Growth: 7.8% (2024)

Air China Limited recorded solid revenue growth of 8.5% in 2024, attributed to a recovery in the travel industry and increased demand for international flights. The 10.2% profit growth indicates that the company is operating more efficiently and was able to benefit from the increased revenue.

The 7.8% passenger growth in the same period suggests that Air China was able to further strengthen its market position, especially in the Asian region. The strategic expansion of flight routes and fleet modernization also contribute positively to the business outlook.

Overall, Air China shows positive trends in key performance indicators, indicating stable financial health and growth potential. Investors may see this as an indicator of a promising investment, provided that macroeconomic conditions and demand for air travel remain stable.

Dividend Yield: 3.5% (2024)
Dividend History: Stable payout over the last 5 years

Air China Limited has been paying a consistent dividend in recent years. The dividend yield for the year 2024 was 3.5%, which is competitive compared to other companies in the aviation industry.

The reliability of Air China's dividend payments is strengthened by its stable financial performance and support from the Chinese government. Despite challenges in the aviation industry, the company has maintained its dividend policy, indicating a solid financial foundation and a strategic focus on long-term growth.