Shares of Air China (00753) rallied more than 4% during the afternoon session, with the stock last up 2.67% at HK$3.845, registering a turnover of HK$146 million. The uptick followed the release of the carrier's interim results, which highlighted a notable rise in both revenue and passenger traffic for the first half of the year.

According to the mid-year financial report, Air China generated revenue of RMB 89.268 billion in the first half, marking a year-on-year increase of 10.54%. However, the company still recorded a net loss attributable to shareholders of RMB 2.286 billion, a significant widening compared to the same period last year. The airline expanded its capacity to 180.676 billion available seat kilometers, up 1.75% year-on-year, while passenger numbers reached 79.6983 million, an increase of 3.35%.

These figures indicate that the company is not suffering from a lack of demand or revenue growth; rather, its income expansion has failed to keep pace with escalating costs. Notably, in June, Air China completed a private placement to its controlling shareholder group, raising RMB 20 billion in fresh capital. By the end of the reporting period, the company's debt-to-asset ratio stood at 83.87%.

Additionally, financial expenses dropped by 31.30% year-on-year during the first half, while contributions from associate Cathay Pacific added RMB 1.197 billion in investment income. The combination of strengthened capital reserves, reduced financing costs, and solid associate earnings has collectively improved the company's financial resilience.