Air China plans major A-share issuance to boost capital

Air China announced a plan to issue A-shares to specific targets in 2025, aiming to raise up to RMB 20.00 bn. The funds will be used for debt repayment and to supplement working capital. The issuance will be subscribed by its controlling shareholder, China National Aviation Holding Corporation (CNAHC), and CNAHC's wholly-owned subsidiary, China National Aviation Capital Holdings Co., Ltd. (CNACHC), at RMB 6.57 per share. This transaction will increase CNAHC and its subsidiaries' combined ownership to approximately 60.58%, without changing the actual controller.

The proposed issuance, a related-party transaction, has been approved by Air China's board of directors, with related parties recusing themselves from voting. This follows a robust recovery in China's civil aviation sector, with key operating indicators exceeding 2019 levels. The company's asset-liability ratio stood at 87.88% as of September 30, 2025, highlighting the need for capital structure optimization.

The company's third-quarter report for 2025 shows net profit attributable to shareholders of RMB 1.87 bn, an increase of 37.31% year-on-year. A separate report confirms the prior use of raised capital, with all previous A-share and H-share funds for airplane acquisition and working capital now fully utilized or with a remaining balance of RMB 22,694,874.20.