China Southern Airlines reported a decisive turnaround for the three months ended 31 March 2026, citing continued recovery in production and operations.

Key financial highlights • Operating revenue reached RMB 47.78 billion, a year-on-year increase of 10.08%. • Profit before tax surged to RMB 2.67 billion versus RMB 33 million a year earlier. • Net profit attributable to shareholders swung to a profit of RMB 1.48 billion (3.10% net margin) from a loss of RMB 0.75 billion in Q1 2025. Excluding non-recurring items, profit was RMB 1.04 billion, compared with a loss of RMB 1.16 billion. • Basic earnings per share recovered to RMB 0.08, up from a loss of RMB 0.04; diluted EPS was RMB 0.07. • Net cash generated from operating activities increased 9.48% to RMB 4.85 billion.

Balance-sheet developments • Total assets rose 1.91% from end-2025 to RMB 356.51 billion. • Equity attributable to shareholders climbed 4.16% to RMB 37.06 billion, driving the weighted-average return on equity to 4.07% (Q1 2025: –2.17%). • Cash and cash equivalents stood at RMB 8.10 billion at quarter-end, down from RMB 9.40 billion at the start of the year, reflecting a net cash outflow of RMB 1.30 billion after investment and financing activities. • Total liabilities were RMB 299.35 billion, while lease liabilities amounted to RMB 84.04 billion.

Cost and margin dynamics • Operating costs rose 8.0% to RMB 46.94 billion, outpaced by revenue growth, helping operating profit reach RMB 2.51 billion versus a RMB 69 million loss in the prior-year quarter. • Financial expenses fell 35.2% to RMB 0.86 billion, supporting margin expansion. • Non-recurring gains totaled RMB 0.44 billion, comprising mainly RMB 0.41 billion of fair-value gains on financial instruments and RMB 0.16 billion of other non-operating income.

Liquidity and guarantees • The Group maintained guarantees for 24 special-purpose vehicles (SPVs) related to aircraft financing, totaling USD 4.36 billion (approximately RMB 30.18 billion), within the scope authorized by shareholders. • Net cash used in investing activities widened to RMB 6.11 billion, driven by higher capital expenditure and investment outlays, while financing cash flow was broadly neutral at a RMB 0.04 billion outflow.

Shareholder structure China Southern Air Holding Company Limited remained the largest shareholder with a 51.90% stake. Total ordinary shareholders numbered 146,819 at quarter-end.

Outlook remarks Management attributed the earnings rebound to “sustained improvement in production and operations.” While the first-quarter performance marks a notable recovery, the company did not provide specific guidance for the remainder of 2026.