CHINA AIRLINES Business Summary

China Airlines Ltd (2610.TW) operates as the state-owned flag carrier of Taiwan, generating revenue primarily through a dual-core business model of international passenger transportation and global air cargo logistics. As of early 2026, passenger services account for approximately 60% of consolidated revenue, bolstered by a recovery in North American and Northeast Asian travel, while cargo operations contribute roughly 35%, driven by high-demand exports of AI-related hardware and electronic components. The company also derives income from diversified subsidiaries including Tigerair Taiwan (low-cost carrier), Mandarin Airlines (regional), and specialized units for aircraft maintenance, ground handling, and in-flight catering. Positioned as a premium full-service carrier within the SkyTeam alliance, China Airlines competes directly with domestic rivals EVA Airways and Starlux Airlines, as well as regional giants Cathay Pacific and Singapore Airlines, maintaining its market leadership through its dominant hub at Taoyuan International Airport. Leadership is currently spearheaded by Chairman Kao Shing-Hwang and President Chen Han-Ming, both appointed in March 2025 to lead the group’s post-pandemic expansion. Kao is a 40-year veteran of the airline who rose from flight attendant to senior pilot and eventually Senior Vice President of Flight Operations, providing deep technical and operational expertise. Chen, formerly the Chairman of Tigerair Taiwan, brings a track record of financial turnaround and low-cost carrier management, supported by CFO Wang Wei and Chief Technology Officer Ming-Jyh Chung. The company is fundamentally backed by the China Aviation Development Foundation, which holds a controlling stake of approximately 34%, and the National Development Fund of the Executive Yuan, ensuring strong sovereign alignment and strategic stability for the carrier’s long-term fleet modernization and sustainability initiatives.