Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | CEA |
Entity Registrant Name | CHINA EASTERN AIRLINES CORP LTD |
Entity Central Index Key | 1,030,475 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
A Shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 9,808,485,682 |
H Shares [member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 4,659,100,000 |
Consolidated Statement of Profi
Consolidated Statement of Profit or Loss and Other Comprehensive Income - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Revenues | ¥ 102,475 | ¥ 98,904 | ¥ 93,969 |
Other operating income and gains | 7,481 | 5,469 | 5,269 |
Revenue and other | 109,956 | 104,373 | 99,238 |
Operating expenses | |||
Aircraft fuel | (25,131) | (19,626) | (20,312) |
Take-off and landing charges | (13,254) | (12,279) | (10,851) |
Depreciation and amortization | (13,969) | (12,154) | (10,471) |
Wages, salaries and benefits | (20,320) | (18,145) | (16,459) |
Aircraft maintenance | (5,346) | (4,960) | (4,304) |
Impairment charges | (491) | (29) | (228) |
Food and beverages | (3,090) | (2,862) | (2,469) |
Aircraft operating lease rentals | (4,318) | (4,779) | (4,254) |
Other operating lease rentals | (836) | (868) | (812) |
Selling and marketing expenses | (3,294) | (3,133) | (3,651) |
Civil aviation development fund | (2,080) | (1,945) | (1,826) |
Ground services and other expenses | (3,248) | (5,058) | (5,479) |
(Loss)/gain on fair value changes of derivative financial instruments | (311) | 2 | 6 |
Indirect operating expenses | (4,837) | (6,051) | (5,503) |
Total operating expenses | (100,525) | (91,887) | (86,613) |
Operating profit | 9,431 | 12,486 | 12,625 |
Share of results of associates | 202 | 148 | 126 |
Share of results of joint ventures | 49 | 39 | 26 |
Finance income | 2,112 | 96 | 66 |
Finance costs | (3,184) | (6,272) | (7,176) |
Consolidated profit before income tax | 8,610 | 6,497 | 5,667 |
Income tax expense | (1,800) | (1,542) | (624) |
Profit for the year | 6,810 | 4,955 | 5,043 |
Other comprehensive income to be reclassified to profit or loss in subsequent periods | |||
Cash flow hedges, net of tax | 35 | 107 | 10 |
Fair value changes of available-for-sale investments, net of tax | 115 | 40 | 87 |
Fair value changes of available-for-sale investments held by an associate, net of tax | 10 | (1) | 7 |
Net other comprehensive income to be reclassified to profit or loss in subsequent periods | 160 | 146 | 104 |
Other comprehensive income not to be reclassified to profit or loss in subsequent periods | |||
Actuarial gains/(losses) on the post-retirement benefit obligations, net of tax | 124 | (410) | 196 |
Net other comprehensive income not to be reclassified to profit or loss in subsequent periods | 124 | (410) | 196 |
Other comprehensive income, net of tax | 284 | (264) | 300 |
Total comprehensive income for the year | 7,094 | 4,691 | 5,343 |
Profit attributable to: | |||
Equity holders of the Company | 6,342 | 4,498 | 4,537 |
Non-controlling interests | 468 | 457 | 506 |
Profit for the year | 6,810 | 4,955 | 5,043 |
Total comprehensive income attributable to: | |||
Equity holders of the Company | 6,619 | 4,237 | 4,834 |
Non-controlling interests | 475 | 454 | 509 |
Total comprehensive income for the year | ¥ 7,094 | ¥ 4,691 | ¥ 5,343 |
Earnings per share attributable to the equity holders of the Company during the year | |||
- Basic and diluted (RMB) | ¥ 0.44 | ¥ 0.33 | ¥ 0.35 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Non-current assets | ||
Intangible assets | ¥ 11,596 | ¥ 11,624 |
Property, plant and equipment | 166,856 | 153,180 |
Investment properties | 302 | 321 |
Prepayments for land use right | 1,717 | 2,064 |
Advanced payments on acquisition of aircraft | 24,752 | 23,357 |
Investments in associates | 1,654 | 1,536 |
Investments in joint ventures | 557 | 524 |
Available-for-sale investments | 800 | 645 |
Other non-current assets | 2,927 | 2,969 |
Deferred tax assets | 122 | 79 |
Derivative financial instruments | 151 | 137 |
Non-current assets | 211,434 | 196,436 |
Current assets | ||
Flight equipment spare parts | 2,185 | 2,248 |
Trade and notes receivables | 2,124 | 2,660 |
Prepayments and other receivables | 9,314 | 9,231 |
Derivative financial instruments | 11 | |
Restricted bank deposits and short-term bank deposits | 51 | 43 |
Cash and cash equivalents | 4,605 | 1,695 |
Assets of a disposal group classified as held for sale | 14 | |
Current assets | 18,293 | 15,888 |
Current liabilities | ||
Sales in advance of carriage | 7,043 | 7,677 |
Trade and bills payables | 3,184 | 3,376 |
Other payables and accruals | 19,864 | 20,250 |
Current portion of obligations under finance leases | 9,241 | 6,447 |
Current portion of borrowings | 39,090 | 28,842 |
Income tax payable | 593 | 304 |
Current portion of provision for return condition checks for aircraft under operating leases | 981 | 1,175 |
Derivative financial instruments | 324 | 11 |
Liabilities directly associated with the assets classified as held for sale | 8 | |
Current liabilities | 80,328 | 68,082 |
Net current liabilities | (62,035) | (52,194) |
Total assets less current liabilities | 149,399 | 144,242 |
Non-current liabilities | ||
Obligations under finance leases | 57,627 | 54,594 |
Borrowings | 24,711 | 27,890 |
Provision for return condition checks for aircraft under operating leases | 2,038 | 2,495 |
Other long-term liabilities | 3,724 | 3,874 |
Post-retirement benefit obligations | 2,502 | 2,890 |
Deferred tax liabilities | 18 | 86 |
Derivative financial instruments | 1 | 47 |
Non-current liabilities | 90,621 | 91,876 |
Net assets | 58,778 | 52,366 |
Equity attributable to the equity holders of the Company | ||
- Share capital | 14,467 | 14,467 |
- Reserves | 40,893 | 34,983 |
Equity attributable to the equity holders of the Company | 55,360 | 49,450 |
Non-controlling interests | 3,418 | 2,916 |
Total equity | ¥ 58,778 | ¥ 52,366 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - CNY (¥) ¥ in Millions | Total | Share Capital [Member] | Other Reserves [Member] | Retained Profits [member] | Attributable to Equity Holders of the Company [Member] | Non-controlling Interests [Member] |
Beginning balance at Dec. 31, 2014 | ¥ 31,771 | ¥ 12,674 | ¥ 16,485 | ¥ 815 | ¥ 29,974 | ¥ 1,797 |
Profit for the year | 5,043 | 4,537 | 4,537 | 506 | ||
Other comprehensive income | 300 | 297 | 297 | 3 | ||
Total comprehensive income for the year | 5,343 | 297 | 4,537 | 4,834 | 509 | |
Issue of shares | 2,855 | 466 | 2,389 | 2,855 | ||
Acquisition of non-controlling interests | (252) | (252) | 252 | |||
Dividends paid to non-controlling interests | (38) | (38) | ||||
Transfer from retained profits | 184 | (184) | ||||
Ending balance at Dec. 31, 2015 | 39,931 | 13,140 | 19,103 | 5,168 | 37,411 | 2,520 |
Profit for the year | 4,955 | 4,498 | 4,498 | 457 | ||
Other comprehensive income | (264) | (261) | (261) | (3) | ||
Total comprehensive income for the year | 4,691 | (261) | 4,498 | 4,237 | 454 | |
Issue of shares | 8,540 | 1,327 | 7,213 | 8,540 | ||
Interim 2016 dividend | (738) | (738) | (738) | |||
Dividends paid to non-controlling interests | (58) | (58) | ||||
Transfer from retained profits | 144 | (144) | ||||
Ending balance at Dec. 31, 2016 | 52,366 | 14,467 | 26,199 | 8,784 | 49,450 | 2,916 |
Profit for the year | 6,810 | 6,342 | 6,342 | 468 | ||
Other comprehensive income | 284 | 277 | 277 | 7 | ||
Total comprehensive income for the year | 7,094 | 277 | 6,342 | 6,619 | 475 | |
Final 2016 dividend | (709) | (709) | (709) | |||
Disposal of a subsidiary | 87 | 87 | ||||
Dividends paid to non-controlling interests | (60) | (60) | ||||
Transfer from retained profits | 212 | (212) | ||||
Ending balance at Dec. 31, 2017 | ¥ 58,778 | ¥ 14,467 | ¥ 26,688 | ¥ 14,205 | ¥ 55,360 | ¥ 3,418 |
Consolidated Statement of Chan5
Consolidated Statement of Changes in Equity (Parenthetical) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of changes in equity [abstract] | |||
Consolidated reserves | ¥ 40,893 | ¥ 34,983 | ¥ 24,271 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Cash generated from operations | ¥ 21,108 | ¥ 26,154 | ¥ 25,535 |
Income tax paid | (1,536) | (1,261) | (1,210) |
Net cash flows from operating activities | 19,572 | 24,893 | 24,325 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (7,796) | (21,533) | (8,609) |
Additions to prepayments for land use right | (8) | (86) | (82) |
Additions to intangible assets | (126) | (232) | (109) |
Advanced payments on acquisition of aircraft | (16,759) | (16,864) | (24,772) |
Advanced from disposal of prepayments for land use right | 269 | ||
Proceeds from disposal of assets classified as held for sale | 518 | 4,227 | |
Proceeds from disposal of available for sale investments | 5 | 35 | |
Proceeds from disposal of property, plant and equipment | 1,043 | 690 | 1,294 |
Proceeds from disposal of prepayments for land use right | 3 | 56 | 47 |
Proceeds from disposal of intangible asets | 1 | ||
Decrease/(increase) in restricted and short-term bank deposits | 3 | (1) | 3 |
Increase in shareholding in associates | (64) | (413) | |
Proceeds from disposal of an associate | 12 | 12 | |
Interest received | 111 | 96 | 66 |
Dividends received | 97 | 164 | 92 |
Proceeds from disposal of interest in a subsidiary | 1,897 | 49 | |
Repayment of loans from an associate | 372 | ||
Net cash flows used in investing activities | (21,312) | (37,180) | (27,800) |
Cash flows from financing activities | |||
Proceeds from issue of shares | 8,540 | 2,855 | |
Proceeds from draw-down of short-term bank loans | 33,629 | 39,159 | 26,916 |
Proceeds from issuance of short-term debentures | 29,000 | 47,500 | 21,500 |
Proceeds from issuance of long-term bonds | 2,450 | 12,526 | |
Proceeds from draw-down of long-term bank loans | 7,518 | 11,643 | |
Proceeds from draw-down of other financing activities | 12,320 | 19,027 | 12,929 |
Repayments of short-term debentures | (36,000) | (46,000) | (10,000) |
Repayments of short-term bank loans | (18,383) | (36,728) | (34,767) |
Repayments of long-term bank loans | (3,246) | (28,803) | (10,540) |
Repayments of long-term bonds | (5,497) | ||
Principal repayments of finance lease obligations | (10,587) | (8,606) | (6,350) |
Interest paid | (3,706) | (3,206) | (3,065) |
Dividends paid | (709) | (738) | |
Dividends paid to non-controlling interests of subsidiaries | (60) | (58) | (38) |
Net cash flows from financing activities | 4,708 | 4,634 | 11,083 |
Net increase/(decrease) in cash and cash equivalents | 2,968 | (7,653) | 7,608 |
Cash and cash equivalents at beginning of year | 1,695 | 9,080 | 1,355 |
Effect of foreign exchange rate changes | (47) | 268 | 117 |
Cash and cash equivalents at December 31 | ¥ 4,616 | ¥ 1,695 | ¥ 9,080 |
Corporate and Group Information
Corporate and Group Information | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Corporate and Group Information | 1. CORPORATE AND GROUP INFORMATION China Eastern Airlines Corporation Limited (the “Company”), a joint stock company limited by shares, was established in the People’s Republic of China (the “PRC”) on 14 April 1995. The address of the Company’s registered office is 66 Airport Street, Pudong International Airport, Shanghai, the PRC. The Company and its subsidiaries (together, the “Group”) are principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, tour operations and other extended transportation services. In the opinion of the directors, the holding company and ultimate holding company of the Company is China Eastern Air Holding Company Limited (“CEA Holding”), formerly named as China Eastern Air Holding Company, a state-owned enterprise established in the PRC. The A shares, H shares and American Depositary Shares are listed on the Shanghai Stock Exchange, The Stock Exchange of Hong Kong Limited and The New York Stock Exchange, respectively. These financial statements were approved and authorized for issue by the Company’s Board of Directors (the “Board”) on 25 April, 2018. Information about subsidiaries Particulars of the Company’s principal subsidiaries at the end of the reporting period are as follows: Name Place and date of Issued ordinary/ registered share Percentage of Principal activities place of business capital Direct Indirect million China Eastern Airlines Jiangsu Co., Ltd. (“CEA Jiangsu”) PRC/Mainland China 7 April 1993 RMB 2,000 62.56 % — Provision of airline services China Eastern Airlines Wuhan Co., Ltd. (“CEA Wuhan”) PRC/Mainland China 16 August 2002 RMB 1,750 60 % — Provision of airline services Shanghai Eastern Flight Training Co., Ltd. (“Shanghai Flight Training”) PRC/Mainland China 18 December 1995 RMB 694 100 % — Provision of flight training services Shanghai Airlines Co., Ltd. (“Shanghai Airlines”) PRC/Mainland China 16 March 2010 RMB 500 100 % — Provision of airline services China Eastern Airlines Technology Co., Ltd. (“Eastern Technology”) PRC/Mainland China 19 November 2014 RMB 4,300 100 % — Provision of airline maintenance services China Eastern Business Jet Co., Ltd. PRC/Mainland China 27 September 2008 RMB 50 100 % — Provision of airlines consultation services China Eastern Airlines Yunnan Co., Ltd. (“CEA Yunnan”) PRC/Mainland China 2 August 2011 RMB 3,662 90.36 % — Provision of airline services Eastern Air Overseas (Hong Kong) Co., Ltd. (“Eastern Air Overseas”) Hong Kong 10 June 2011 HKD 280 100 % — Provision of import and export, investment, leasing and consultation services China United Airlines Co., Ltd. (“China United Airlines”) PRC/Mainland China 21 September 1984 RMB 1,320 100 % — Provision of airline services Eastern Airlines Hotel Co., Ltd. PRC/Mainland China 18 March 1998 RMB 70 100 % — Provision of hotel services primarily to crew Shanghai Airlines Tours International (Group) Co., Ltd. (“Shanghai Airlines Tours”) PRC/Mainland China 29 August 1992 RMB 50 100 % — Tour operations, travel and air ticketing agency and transportation China Eastern Airlines Application Development Center Co., Ltd. (“Application Development Center”) PRC/Mainland China 21 November 2011 RMB 498 100 % — Provision of research and development of technology and products in the field of aviation China Eastern Airlines E-Commerce E-Commerce”) PRC/Mainland China 1 December 2014 RMB 50 100 % — E-commerce The above table lists the subsidiaries of the Company which, in the opinion of the directors, principally affected the results for the year or formed a substantial portion of the net assets of the Group. To give details of other subsidiaries would, in the opinion of the directors, result in particulars of excessive length. All of the subsidiaries of the Company listed above are limited liability companies. |
Basis of Preparation
Basis of Preparation | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Basis of Preparation | 2.1 BASIS OF PREPARATION These financial statements have been prepared in accordance with all applicable International Financial Reporting Standards (“IFRSs”) issued by the International Accounting Standards Board (“IASB”) and the disclosure requirements of the Hong Kong Companies Ordinance. They have been prepared under the historical cost convention, except for certain available-for-sale Basis of consolidation The consolidated financial statements include the financial statements of the Company and its subsidiaries. A subsidiary is an entity (including a structured entity), directly or indirectly, controlled by the Company. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee (i.e., existing rights that give the Group the current ability to direct the relevant activities of the investee). When the Company has, directly or indirectly, less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including: (a) the contractual arrangement with the other vote holders of the investee; (b) rights arising from other contractual arrangements; and (c) the Group’s voting rights and potential voting rights. The financial statements of the subsidiaries are prepared for the same reporting period as the Company, using consistent accounting policies. The results of subsidiaries are consolidated from the date on which the Group obtains control, and continue to be consolidated until the date that such control ceases. Profit or loss and each component of other comprehensive income are attributed to the equity holders of the Company and to the non-controlling non-controlling The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control described above. A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it derecognizes (i) the assets (including goodwill) and liabilities of the subsidiary, (ii) the carrying amount of any non-controlling Going concern As at December 31, 2017, the Group’s current liabilities exceeded its current assets by approximately RMB62.04 billion. In preparing the financial statements, the Board conducts a detailed review over the Group’s going concern ability based on the current financial situation. The Board has considered the Group’s available sources of funds as follows: • The Group’s expected net cash inflows from operating activities in 2018; • Unutilized banking facilities of approximately RMB59.47 billion as at December 31, 2017; and • Other available sources of financing from banks and other financial institutions given the Group’s credit history. The Board considers that the Group will be able to obtain sufficient financing to enable it to operate, as well as to meet its liabilities as and when they become due, and the capital expenditure requirements for the upcoming twelve months. Accordingly, the Board believes that it is appropriate to prepare these financial statements on a going concern basis without including any adjustments that would be required should the Company and the Group fail to continue as a going concern. |
Changes in Accounting Policies
Changes in Accounting Policies and Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Changes in Accounting Policies and Disclosures | 2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The Group has adopted the following new and revised IFRSs for the first time for the current year’s financial statements. Amendments to IAS 7 Amendments to IAS 12 Amendments to IFRS 12 included in Annual Improvements to IFRSs 2014-2016 Cycle Disclosure Initiative Recognition of Deferred Tax Assets for Unrealized Losses Disclosure of Interests in Other Entities: Clarification of the The nature and the impact of the amendments are described below: (a) Amendments to IAS 7 require an entities to provide disclosure that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash (b) Amendments to IAS 12 clarify that an entity, when assessing whether taxable profits will be available against which it can utilize a deductible temporary difference, needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount. The amendments have had no impact on the financial position or performance of the Group as the Group has no deductible temporary differences or assets that are in the scope of the amendments. (c) Amendments to IFRS 12 clarify that the disclosure requirements in IFRS 12, other than those disclosure requirements in paragraphs B10 to B16 of IFRS 12, apply to an entity’s interest in a subsidiary, a joint venture or an associate, or a portion of its interest in a joint venture or an associate that is classified as held for sale or included in a disposal group classified as held for sale. The amendments have had no impact on the Group’s financial statements as the Group’s subsidiary classified as a disposal group held for sale (see note 16) as at 31 December 2017 is a wholly-owned subsidiary and so no additional information is required to be disclosed. |
Issued but not yet Effective In
Issued but not yet Effective International Financial Reporting Standards | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Issued but not yet Effective International Financial Reporting Standards | 2.3 ISSUED BUT NOT YET EFFECTIVE INTERNATIONAL FINANCIAL REPORTING STANDARDS The Group has not applied the following new and revised IFRSs, that have been issued but are not yet effective, in these financial statements. Amendments to IFRS 2 Classification and Measurement of Share-based Payment Transactions 1 Amendments to IFRS 4 Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts 1 IFRS 9 Financial Instruments 1 Amendments to IFRS 9 Prepayment Features with Negative Compensation 2 Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture 4 IFRS 15 Revenue from Contracts with Customers 1 Amendments to IFRS 15 Clarifications to IFRS 15 Revenue from Contracts with Customers 1 IFRS 16 Leases 2 IFRS 17 Insurance Contracts 3 Amendments to IAS 40 Transfers of Investment Property 1 Amendments to IAS 19 Employee Benefits 2 IFRIC 22 Foreign Currency Transactions and Advance Consideration 1 IFRIC 23 Uncertainty over Income Tax Treatments 2 Annual Improvements Amendments to IFRS 1 and IAS 28 1 2014-2016 Cycle Annual Improvements Amendments to IFRS 3, IFRS 11, IAS 12 and IAS 23 2 2015-2017 Cycle 1 Effective for annual periods beginning on or after 1 January 2018 2 Effective for annual periods beginning on or after 1 January 2019 3 Effective for annual periods beginning on or after 1 January 2021 4 No mandatory effective date yet determined but available for adoption Further information about those IFRSs that are expected to be applicable to the Group is as follows: The IASB issued amendments to IFRS 2 in June 2016 that address three main areas: the effects of vesting conditions on the measurement of a cash-settled share-based payment transaction; the classification of a share-based payment transaction with net settlement features for withholding a certain amount in order to meet an employee’s tax obligation associated with the share-based payment; and accounting where a modification to the terms and conditions of a share-based payment transaction changes its classification from cash-settled to equity-settled. The amendments clarify that the approach used to account for vesting conditions when measuring equity-settled share-based payments also applies to cash-settled share-based payments. The amendments introduce an exception so that a share-based payment transaction with net share settlement features for withholding a certain amount in order to meet the employee’s tax obligation is classified in its entirety as an equity-settled share-based payment transaction when certain conditions are met. Furthermore, the amendments clarify that if the terms and conditions of a cash-settled share-based payment transaction are modified, with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as an equity-settled transaction from the date of the modification. On adoption, entities are required to apply the amendments without restating prior periods, but retrospective application is permitted if they elect to adopt for all three amendments and other criteria are met. The Group will adopt the amendments from 1 January 2018. The amendments are not expected to have any significant impact on the Group’s financial statements. In July 2014, the IASB issued the final version of IFRS 9, bringing together all phases of the financial instruments project to replace IAS 39 and all previous versions of IFRS 9. The standard introduces new requirements for classification and measurement, impairment and hedge accounting. The Group will adopt IFRS 9 from 1 January 2018. The Group will not restate comparative information and will recognize any transition adjustments against the opening balance of equity at 1 January 2018. During 2017, the Group has performed a detailed assessment of the impact of the adoption of IFRS 9. The expected impacts relate to the classification and measurement and the impairment requirements and are summarized as follows: . (a) Classification and measurement The Group does not expect that the adoption of IFRS 9 will have a significant impact on the classification and measurement of its financial assets. It expects to continue measuring at fair value all financial assets currently held at fair value. The equity shares in non-listed available-for-sale available-for-sale Loans as well as trade receivables are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interest. The Group analyzed the contractual cash flow characteristics of those instruments and concluded that they meet the criteria for amortized cost measurement under IFRS 9. Therefore, reclassification for these instruments is not required. (b) Impairment IFRS 9 requires an impairment on debt instruments recorded at amortized cost or at fair value through other comprehensive income, lease receivables, loan commitments and financial guarantee contracts that are not accounted for at fair value through profit or loss under IFRS 9, to be recorded based on an expected credit loss model either on a twelve-month basis or a lifetime basis. The Group will apply the simplified approach and record lifetime expected losses that are estimated based on the present values of all cash shortfalls over the remaining life of all of its trade receivables. Furthermore, the Group will apply the general approach and record twelve-month expected credit losses that are estimated based on the possible default events on its other receivables within the next twelve months. (c) Hedge accounting The Group determined that all existing hedge relationships that are currently designated in effective hedging relationships will continue to qualify for hedge accounting under IFRS 9. As IFRS 9 does not change the general principles of how an entity accounts for effective hedges, applying the hedging requirements of IFRS 9 will not have a significant impact on the Group’s financial statements. Amendments to IFRS 10 and IAS 28 address the conflict between IFRS 10 and IAS 28 in dealing with the loss of control of a subsidiary that is sold or contributed to an associate or joint venture. The amendments clarify that the gain or loss resulting from the sale or contribution of assets that constitute a business, as defined in IFRS 3, between an investor and its associate or joint venture, is recognized in full. Any gain or loss resulting from the sale or contribution of assets that do not constitute a business, however, is recognized only to the extent of unrelated investors’ interests in the associate or joint venture. The IASB has deferred the effective date of these amendments indefinitely, but an entity that early adopts the amendments must apply them prospectively. The Group will apply these amendments when they become effective. IFRS 15 was issued in May 2014, and amended in April 2016, and establishes a five-step model to account for revenue arising from contracts with customers. Under IFRS 15, revenue is recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer. The new revenue standard will supersede all current revenue recognition requirements under IFRS. Either a full retrospective application or a modified retrospective application is required for annual periods beginning on or after 1 January 2018. The Group will adopt the standard effective January 1, 2018 using the modified retrospective approach. During 2017, the Group has assessed the impact of the adoption of IFRS 15 and is currently in the process of completing the analysis. The expected impacts arising from the adoption of IFRS 15 on the Group are summarized as follows: (a) Frequent flyer programs Prior to the adoption of IFRS 15, the Group uses residual method to allocate a portion of ticket sales to the mileage points issued in connection with the flights and to allocate a portion of sales to the mileage points issued under the co-branded (b) Change fees The Group charges customers to make changes to air tickets. The process of changing the customer’s itinerary generally will be regarded a contract modification under IFRS 15 instead of considered as no additional goods or services transferred to the customer in the existing accounting policy. Under IFRS 15, change fees will be recognized in passenger revenue when transportation is provided, while it is currently recognized in other revenue at the time of the ticket is changed. (c) Passenger ticket breakage Ticket breakage is defined as the tickets for which the passenger will not use and will expire unused. Currently, the Group recognizes revenue from the ticket breakage upon expiration of the ticket. Under IFRS 15, the Group is required to estimate the tickets that will expire unused and recognize revenue in proportion to the pattern of rights exercised by customers. Under IFRS 15, the Group will recognize the estimated breakage in proportion to revenue recognized for tickets acquired during the same period using a portfolio based approach. IFRS 16 was issued in January 2016 and it replaces IAS 17 Leases Determining whether an Arrangement contains a Lease SIC-15 Operating Leases-Incentives SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease on-balance ‘low-value’ right-of-use right-of-use Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognize the amount of the remeasurement of the lease liability as an adjustment to the right-of-use IFRS 16 also requires lessees and lessors to make more extensive disclosures than under IAS 17. IFRS 16 is effective for annual periods beginning on or after 1 January 2019. Early application is permitted, but not before an entity applies IFRS 15. A lessee can choose to apply the standard using either a full retrospective or a modified retrospective approach. The standard’s transition provisions permit certain reliefs. The Group expects to adopt IFRS 16 from 1 January 2019. Management is still assessing the impact on the financial performance and position of the Group resulting from the adoption of IFRS 16 for the annual period beginning on 1 January 2019. As disclosed in note 46(b) to the financial statements, at 31 December 2017, the Group had future minimum lease payments under non-cancellable right-of-use low-value Amendments to IAS 40, issued in December 2016, clarify when an entity should transfer property, including property under construction or development, into or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management’s intentions for the use of a property does not provide evidence of a change in use. The amendments should be applied prospectively to the changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at the date that it first applies the amendments and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application is only permitted if it is possible without the use of hindsight. The Group expects to adopt the amendments prospectively from 1 January 2018. The amendments are not expected to have any significant impact on the Group’s financial statements. Amendments to IAS 19, issued in February 2018, clarify when a plan amendment, curtailment or settlement occurs for defined benefit plan, any entity must Determine current service cost for the remainder of the period after the plan amendment, curtailment or settlement using the actuarial assumptions used to remeasure the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event. Determine net interest for the remainder of the period after the plan amendment, curtailment or settlement using: (i) the net defined benefit liability (asset) reflecting the benefits offered under the plan and the plan assets after that event; and (ii) the discount rate used to remeasure that net defined benefit liability (asset). The amendments to IAS 19 also clarify that an entity first determines any past service cost, or a gain or loss on settlement, without considering the effect of the asset ceiling. This amount is recognized in profit or loss. An entity then determines the effect of the asset ceiling after the plan amendment, curtailment or settlement. Any change in that effect, excluding amounts included in net interest, is recognized in other comprehensive income. The amendments to IAS 19 must be applied to plan amendments, curtailments or settlements occurring on or after the beginning of the first annual reporting period that begins on or after 1 January 2019. Consequently, entities do not have to revisit plan amendments, curtailments and settlements that occurred in prior periods. The amendments are not expected to have any significant impact on the Group’s financial statements. IFRIC 22 provides guidance on how to determine the date of the transaction when applying IAS 21 to the situation where an entity receives or pays advance consideration in a foreign currency and recognizes a non-monetary non-monetary non-monetary IFRIC 23, issued in June 2017, addresses the accounting for income taxes (current and deferred) when tax treatments involve uncertainty that affects the application of IAS 12 (often referred to as “uncertain tax positions”). The interpretation does not apply to taxes or levies outside the scope of IAS 12, nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses (i) whether an entity considers uncertain tax treatments separately; (ii) the assumptions an entity makes about the examination of tax treatments by taxation authorities; (iii) how an entity determines taxable profits or tax losses, tax bases, unused tax losses, unused tax credits and tax rates; and (iv) how an entity considers changes in facts and circumstances. The interpretation is to be applied retrospectively, either fully retrospectively without the use of hindsight or retrospectively with the cumulative effect of application as an adjustment to the opening equity at the date of initial application, without the restatement of comparative information. The Group expects to adopt the interpretation from 1 January 2019. The amendment is not expected to have any significant impact on the Group’s financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Significant Accounting Policies | 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Investments in associates and joint ventures An associate is an entity in which the Group has a long-term interest of generally not less than 20% of the equity voting rights and over which it is in a position to exercise significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group’s investments in associates and joint ventures are stated in the consolidated statement of financial position at the Group’s share of net assets under the equity method of accounting, less any impairment losses. Adjustments are made to bring into line any dissimilar accounting policies that may exist. The Group’s share of the post-acquisition results and other comprehensive income of associates and joint ventures is included in the consolidated statement of profit or loss and other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Group recognizes its share of any changes, when applicable, in the consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s investments in the associates or joint ventures, except where unrealized losses provide evidence of an impairment of the asset transferred. Goodwill arising from the acquisition of associates or joint ventures is included as part of the Group’s investments in associates or joint ventures. If an investment in an associate becomes an investment in a joint venture or vice versa, the retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method. In all other cases, upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. When an investment in an associate or a joint venture is classified as held for sale, it is accounted for in accordance with IFRS 5 Non-current Segmental reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the office of the General Manager that makes strategic decisions. Foreign currencies (i) Functional currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in “RMB”, which is the Company’s functional currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within “finance income” or “finance costs”. Non-monetary Non-monetary non-monetary Revenue recognition and sales in advance of carriage Revenue comprises the fair value of the consideration received or receivable for the provision of services and the sale of goods in the ordinary course of the Group’s activities. Revenue is stated net of business taxes or value-added taxes, returns, rebates and discounts and after eliminating sales within the Group. Revenue is recognized when it is probable that the economic benefits will flow to the Group and when the revenue can be measured reliably, on the following basis: (i) Traffic revenues Passenger, cargo and mail revenues are recognized as traffic revenues when the transportation services are provided. The value of sold but unused tickets is recognized as sales in advance of carriage (“SIAC”). (ii) Ground service income and tour operation revenues Revenues from the provision of ground services, tour, travel services and other travel related services are recognized when the services are rendered. (iii) Cargo handling income Revenues from the provision of cargo handling services are recognized when the services are rendered. (iv) Commission income Commission income represents amounts earned from other carriers in respect of sales made by the Group on their behalf, and is recognized in profit or loss upon ticket sales. (v) Other revenue Revenues from other operating businesses, including income derived from the provision of freight forwarding, are recognized when the services are rendered. (vi) Frequent flyer programs The Group operates frequent flyer programs that provide travel awards to program members based on accumulated miles. A portion of passengers revenue attributable to the award of frequent flyer benefits is deferred and recognized when the miles have been redeemed or have expired. (vii) Interest income Interest income is recognized on a time-proportion basis using the effective interest rate method. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the costs, which it is intended to compensate are expensed. Where the grant relates to an asset, the fair value is credited to a deferred income account and is released to profit or loss over the expected useful life of the relevant asset by equal annual instalments. Maintenance and overhaul costs In respect of aircraft and engines under operating leases, the Group has obligations to fulfil certain return conditions under the leases. Provision for the estimated cost of these return condition checks is made on a straight-line basis over the term of the leases. In respect of aircraft and engines owned by the Group or held under finance leases, overhaul costs that meet specific recognition criteria are capitalized as a component of property, plant and equipment and are depreciated over the appropriate maintenance cycles. All other repairs and maintenance costs are charged to profit or loss as and when incurred. Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, i.e., assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of those assets. The capitalization of such borrowing costs ceases when the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs capitalized. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Income tax Income tax comprises current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in which the Group operates. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except: • when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and • in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carryforward of unused tax credits and unused tax losses can be utilized, except: • when the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and • in respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. Intangible assets (i) Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as at 31 December. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. (ii) Computer software costs Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized using the straight-line method over their estimated useful lives of 5 years. Costs associated with developing or maintaining computer software programs are recognized as expenses when incurred. (iii) Others Others relate to the capitalized costs incurred to acquire the use right of certain flight schedules (i.e. timeslots for flights’ taking off/landing) in Guangzhou Baiyun International Airport Co., Ltd. and Shanghai Pudong International Airport, respectively. These costs are amortized using the straight-line method over their useful lives of 3 years. Deferred pilot recruitment costs Deferred pilot recruitment costs represent the costs borne by the Group in connection with securing a certain minimum period of employment of pilots and are amortized on a straight-line basis over the anticipated beneficial period of 5 years, starting from the date the pilot joins the Group. Related parties A party is considered to be related to the Group if: (a) the party is a person or a close member of that person’s family and that person (i) has control or joint control over the Group; (ii) has significant influence over the Group; (iii) is a member of the key management personnel of the Group or of a parent of the Group; or (b) the party is an entity where any of the following conditions applies: (i) the entity and the Group are members of the same group; (ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity); (iii) the entity and the Group are joint ventures of the same third party; (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group and the sponsoring employers of the post-employment benefit plan; (vi) the entity is controlled or jointly controlled by a person identified in (a); (vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (viii) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. Property, plant and equipment Property, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and any impairment losses. When an item of property, plant and equipment is classified as held for sale or when it is part of a disposal group classified as held for sale, it is not depreciated and is accounted for in accordance with IFRS 5, as further explained in the accounting policy for “Non-current When each major aircraft overhaul is performed, its cost is recognized in the carrying amount of the item of property, plant and equipment and is depreciated over the appropriate maintenance cycles. Components related to airframe overhaul cost, are depreciated on a straight-line basis over 5 to 7.5 years. Components related to engine overhaul costs, are depreciated between each overhaul period using the ratio of actual flying hours and estimated flying hours between overhauls. Upon completion of an overhaul, any remaining carrying amount of the cost of the previous overhaul is derecognized and charged to profit or loss. Except for components related to overhaul costs, the depreciation method of which has been described in the preceding paragraph, other depreciation of property, plant and equipment is calculated using the straight-line method to write off their costs to their residual values over their estimated useful lives, as follows: Owned and finance leased aircraft and engines 15 to 20 years Other flight equipment, including rotables 10 years Buildings 8 to 45 years Other property, plant and equipment 3 to 20 years Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately. Residual values, useful lives and the depreciation method are reviewed, and adjusted if appropriate, at least at each financial year end. An item of property, plant and equipment including any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal or retirement recognized in the statement of profit or loss in the year the asset is derecognized is the difference between the net sales proceeds and the carrying amount of the relevant asset. Construction in progress represents a building under construction, which is stated at cost less any impairment losses, and is not depreciated. Cost comprises the direct costs of construction and capitalized borrowing costs on related borrowed funds during the period of construction. Construction in progress is reclassified to the appropriate category of property, plant and equipment when completed and ready for use. Investment properties Investment properties are interests in land and buildings (including the leasehold interest under an operating lease for a property which would otherwise meet the definition of an investment property) held to earn rental income and/or for capital appreciation, rather than for use in the production or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. Such properties are measured initially at cost, including transaction costs. After initial recognition, the Group chooses the cost model to measure all of its investment properties. Depreciation is calculated on the straight-line basis to write off the cost to its residual value over its estimated useful life. The estimated useful lives are as follows: Buildings 30 to 35 years The carrying amounts of investment properties measured using the cost method are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the year of the retirement or disposal. Impairment of non-financial Where an indication of impairment exists, or when annual impairment testing for an asset is required (other than inventories, construction contract assets, financial assets, investment properties and non-current An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax An assessment is made at the end of each reporting period as to whether there is an indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognized impairment loss of an asset other than goodwill is reversed only if there has been a change in the estimates used to determine the recoverable amount of that asset, but not to an amount higher than the carrying amount that would have been determined (net of any depreciation/amortization) had no impairment loss been recognized for the asset in prior years. A reversal of such an impairment loss is credited to profit or loss in the period in which it arises, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is accounted for in accordance with the relevant accounting policy for that revalued asset. Non-current Non-current non-controlling Non-current Prepayments for land use right Prepayments for land use right are initially stated at cost and subsequently recognized on the straight-line basis over the agreed terms. Advanced payments on acquisition of aircraft Advanced payments on acquisition of aircraft represent payments to aircraft manufacturers to secure deliveries of aircraft in future years, including attributable borrowing costs, and are included in non-current Flight equipment spare parts Flight equipment spare parts are stated at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of flight equipment spare parts comprises the purchase price (net of discounts), freight charges, duty and other miscellaneous charges. Net realizable value is the estimated selling price of the flight equipment spare parts in the ordinary course of business, less applicable selling expenses. Investments and other financial assets Initial recognition measurement Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables and available-for-sale All regular way purchases and sales of financial assets are recognized on the trade date, that is, the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace. S ubsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of sale in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with positive net changes in fair value presented as other income and gains and negative net changes in fair value presented as finance costs in profit or loss. These net fair value changes do not include any dividends or interest earned on these financial assets, which are recognized in accordance with the policies set out for “Revenue recognition and sales in advance of carriage” above. Financial assets designated upon initial recognition as at fair value through profit or loss are designated at the date of initial recognition and only if the criteria in IAS 39 are satisfied. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated as at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category. Loans and receivables Loans and receivables are non-derivative Available-for-sale Available-for-sale non-derivative After initial recognition, available-for-sale available-for-sale When the fair value of unlisted equity investments cannot be reliably measured because (a) the variability in the range of reasonable fair value estimates is significant for that investment or (b) the probabilities of the various estimates within the range cannot be reasonably assessed and used in estimating fair value, such investments are stated at cost less any impairment losses. The Group evaluates whether the ability and intention to sell its available-for-sale For a financial asset reclassified from the available-for-sale Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • the rights to receive cash flows from the asset have expired; or • the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risk and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. Impairment of financial assets The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that occurred after the initial recognition of the asset have an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that a debtor or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. Financial assets carried at amortized cost For financial assets carried at amortized cost, the Group first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment. The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Loans and receivables together with any associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. If, in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off Available-for-sale For available-for-sale If an available-for-sale In the case of equity investments classified as available for sale, objective evidence would include a significant or prolonged decline in the fair value of an investment below its cost. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period in which the fair value has been below its original cost. Where there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss – is removed from other comprehensive income and recognized in profit or loss. Impairment losses on equity instruments classified as available for sale are not reversed through profit or loss. Increases in their fair value after impairment are recognized directly in other comprehensive income. The determination of what is “significant” or “prolonged” requires judgement. In making this judgement, the Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost. Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. The Group’s financial liabilities primarily include trade and other payables, derivative financial instruments and borrowings. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification as follows: Loans and borrowings After initial recognition, borrowings are subsequently measured at amortized cost, using the effective interest rate method unless the effect of discounting would be immaterial, in which case they are stated at cost. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance costs in profit or loss. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial |
Critical Accounting Estimates a
Critical Accounting Estimates and Judgements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Critical Accounting Estimates and Judgements | 4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS Estimates and judgements used in preparing the financial statements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (a) Revenue recognition The Group recognizes traffic revenues in accordance with the accounting policy stated in note 3 to the financial statements. Unused tickets are recognized in traffic revenues upon legal expiration. Management periodically evaluates the balance in the SIAC and records any adjustments, which can be material, in the period the evaluation is completed. These adjustments result from differences between the estimates of certain revenue transactions and the timing of recognizing revenue for any unused air tickets and the related sales price, and are impacted by various factors, including a complex pricing structure and interline agreements throughout the industry, which affect the timing of revenue recognition. (b) Frequent flyer programmes The Group operates frequent flyer programmes that provide travel awards to programme members based on accumulated miles. A portion of passengers’ revenue attributable to the award credits of frequent flyer benefits is deferred and recognized when the award credits have been redeemed or have expired. The deferment of revenue is calculated based on the estimated fair values of the unredeemed award credits and expected redemption rate. The fair values of the unredeemed award credits is estimated based on the yearly average flight ticket prices and the expected redemption rate is estimated by reference to the historical trends of redemptions. Different judgements or estimates could significantly affect the estimated provision for frequent flyer programmes and the results of operations. (c) Provision for return condition checks for aircraft and engines under operating leases Provision for the estimated costs of return condition checks for aircraft and engines under operating leases is made based on the estimated costs for such return condition checks and taking into account anticipated flying hours, flying cycle and time frame between each overhaul. These judgements or estimates are based on historical experience on returning similar airframe models, actual costs incurred and aircraft status. Different judgements or estimates could significantly affect the estimated provision for costs of return condition checks. (d) Retirement benefits The Group operates and maintains a defined retirement benefit plan which provides eligible retirees with benefits including retirement subsidies, travel allowance as well as other welfare. The cost of providing the aforementioned benefits in the defined retirement benefit plan is actuarially determined and recognized over the employee’s service period by utilizing various actuarial assumptions and using the projected unit credit method in accordance with the accounting policy stated in note 3 to the financial statements. These assumptions include, without limitation, the selection of discount rate, annual rate of increase of per capita benefit payment and etc.. The discount rate is based on management’s review of government bonds. The annual rate of increase of benefit payments is based on the general local economic conditions. Additional information regarding the retirement benefit plan is disclosed in note 37 to the financial statements. (e) Deferred income tax In assessing the amount of deferred tax assets that need to be recognized in accordance with the accounting policy stated in note 3 to the financial statements, the Group considers future taxable income and ongoing prudent and feasible tax planning strategies. In the event that the Group’s estimates of projected future taxable income and benefits from available tax strategies are changed, or changes in current tax regulations are enacted that would impact the timing or extent of the Group’s ability to utilize the tax benefits of deductible tax losses carried forward in the future, adjustments to the recorded amount of net deferred tax assets and taxation expense would be made. (f) Provision for flight equipment spare parts Provision for flight equipment spare parts is made based on the difference between the carrying amount and the net realizable value. The net realizable value is estimated based on current market condition, historical experience and the Company’s future operation plan for the aircraft and related spare parts. The net realizable value may be adjusted significantly due to the change of market condition and the future plan for the aircraft and related spare parts. (g) Depreciation of property, plant and equipment Depreciation of components related to airframe and engine overhaul costs is based on the Group’s historical experience with similar airframe and engine models and taking into account anticipated overhaul costs, timeframe between each overhaul, ratio of actual flying hours and estimated flying hours between overhauls. Different judgements or estimates could significantly affect the estimated depreciation charge and the results of operations. Except for components related to engine overhaul costs, other property, plant and equipment are depreciated on a straight-line basis over the estimated useful lives, after taking into account the estimated residual value. The useful lives are based on the Group’s historical experience with similar assets and taking into account anticipated technological changes. The Group reviews the estimated useful lives of assets regularly in order to determine the amount of depreciation expense to be recorded during any reporting period. The depreciation expense for future periods is adjusted if there are significant changes from previous estimates. (h) Estimated impairment of property, plant and equipment and intangible assets The Group tests whether property, plant and equipment and intangible assets have been impaired in accordance with the accounting policy stated in note 3 to the financial statements. The recoverable amount of the cash-generating unit has been determined based on fair value less cost to sell and value-in-use Value-in-use (i) Impairment of goodwill The Group determines whether goodwill is impaired at least on an annual basis. This requires an estimation of the value in use of the cash-generating unit to which the goodwill is allocated. Estimating the value in use requires the Group to make an estimate of the expected future cash flows from the cash-generating unit and also to choose a suitable discount rate in order to calculate the present value of those cash flows. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2017 | |
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Revenues | 5 REVENUES The Group is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, tour operations and other extended transportation services. 2017 2016 2015 RMB million RMB million RMB million Traffic revenues 95,187 89,554 85,076 - Passenger 91,564 83,577 78,585 - Cargo and mail 3,623 5,977 6,491 Tour operations income 2,322 3,113 3,491 Ground service income 1,323 2,850 2,546 Cargo handling and processing income 69 794 750 Commission income 112 92 78 Others 3,462 2,501 2,028 102,475 98,904 93,969 |
Other Operating Income and Gain
Other Operating Income and Gains | 12 Months Ended |
Dec. 31, 2017 | |
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Other Operating Income and Gains | 6 OTHER OPERATING INCOME AND GAINS 2017 2016 2015 RMB million RMB million RMB million Subsidy income (note (a)) 4,941 4,531 4,131 Gain on disposal of property, plant and equipment 69 158 399 Gain on disposal of prepayments for land use right 5 3 1 Gain on disposal of available-for-sale 4 95 33 Dividend income from available-for-sale 33 28 13 Gain on disposal of an associate 12 12 — Compensation from ticket sales agents 271 228 248 Gain on disposal of a subsidiary (note 43) 1,754 — 41 Others (note (b)) 392 414 403 7,481 5,469 5,269 Notes: (a) Subsidy income mainly represents (i) subsidies granted by various local governments based on certain amounts of tax paid; (ii) subsidies granted by various local governments and other parties to encourage the Group to operate certain routes to cities where these governments are located. There are no unfulfilled conditions and other contingencies related to subsidies that were recognized for the years ended 31 December 2017, 2016 and 2015. (b) Others mainly represent compensation from transfer of the pilots. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
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Segment Information | 7 SEGMENT INFORMATION (a) CODM, office of the General Manager, reviews the Group’s internal reporting in order to assess performance and allocate resources. The Group has one reportable operating segment, reported as “airline transportation operations”, which comprises the provision of passenger, cargo, mail delivery, ground service and cargo handling services. Other services including primarily tour operations, air catering and other miscellaneous services are not included within the airline transportation operations segment, as their internal reports are separately provided to the CODM. The results of these operations are included in the “other segments” column. Inter-segment transactions are entered into under normal commercial terms and conditions that would be available to unrelated third parties. In accordance with IFRS 8, segment disclosure has been presented in a manner that is consistent with the information used by the Group’s CODM. The Group’s CODM monitors the results, assets and liabilities attributable to each reportable segment based on financial results prepared under the PRC Accounting Standards for Business Enterprises (the “PRC Accounting Standards”), which differ from IFRSs in certain aspects. The amount of each material reconciling items from the Group’s reportable segment revenue and profit or loss, arising from different accounting policies are set out in note 7(c) below. The segment results for the year ended December 31, 2017 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 97,698 4,023 — — 101,721 Inter-segment sales — 1,018 (1,018 ) — — Reportable segment revenue 97,698 5,041 (1,018 ) — 101,721 Reportable segment profit before income tax 6,517 363 — 1,740 8,620 Other segment information Depreciation and amortization 13,769 190 — — 13,959 Impairment charges (note 10) 489 2 — — 491 Interest income 2,309 (96 ) (101 ) — 2112 Interest expenses 3,080 205 (101 ) — 3,184 Capital expenditure 32,149 657 — — 32,806 The segment results for the year ended December 31, 2016 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 94,338 4,222 — — 98,560 Inter-segment sales — 782 (782 ) — — Reportable segment revenue 94,338 5,004 (782 ) — 98,560 Reportable segment profit before income tax 5,788 397 — 322 6,507 Other segment information Depreciation and amortization 12,378 160 — — 12,538 Impairment charges (note 10) 22 7 — — 29 Interest income 100 100 (104 ) — 96 Interest expenses 2,553 280 (104 ) — 2,729 Capital expenditure * 34,631 776 — — 35,407 * Capital expenditure consists of additions to property, plant and equipment, investment properties and intangible assets and long-term deferred assets. The segment results for the year ended December 31, 2015 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 89,013 4,831 — — 93,844 Inter-segment sales 555 468 (1,023 ) — — Reportable segment revenue 89,568 5,299 (1,023 ) — 93,844 Reportable segment profit before income tax 5,327 238 — 106 5,671 Other segment information Depreciation and amortization 10,727 128 — — 10,855 Impairment charges (note 10) 93 1 — 134 228 Interest income 69 13 (16 ) — 66 Finance expenses 1,935 270 (16 ) — 2,189 Capital expenditure 37,706 591 — — 38,297 The segment assets and liabilities as at December 31, 2017 and December 31, 2016 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million At December 31, 2017 Reportable segment assets 216,591 13,376 (5,514 ) 3,011 227,464 Reportable segment liabilities 165,148 11,301 (5,514 ) 11 170,946 At December 31, 2016 Reportable segment assets 205,024 11,218 (8,896 ) 2,705 210,051 Reportable segment liabilities 159,437 9,373 (8,896 ) 41 159,955 * Unallocated assets primarily represent investments in associates and joint ventures, and available-for-sale available-for-sale (b) The Group’s business operates in three main geographical areas, even though they are managed on a worldwide basis. The Group’s revenues by geographical area are analysed based on the following criteria: 1) Traffic revenue from services within the PRC (excluding the Hong Kong Special Administrative Region (“Hong Kong”), the Macau Special Administrative Region (“Macau”) and Taiwan, (collectively known as “Regional”)) is classified as domestic operations. Traffic revenue from inbound and outbound services between overseas markets excluding Regional is classified as international operations. 2) Revenue from ticket handling services, ground services, cargo handling service and other miscellaneous services is classified on the basis of where the services are performed. 2017 2016 2015 RMB million RMB million RMB million Domestic (the PRC, excluding Hong Kong, Macau and Taiwan) 67,923 63,730 61,222 Regional (Hong Kong, Macau and Taiwan) 3,624 3,516 3,569 International 30,928 31,658 29,178 Total 102,475 98,904 93,969 The major revenue-earning assets of the Group are its aircraft, all of which are registered in the PRC. Since the Group’s aircraft are deployed flexibly across its route network, there is no suitable basis of allocating such assets and the related liabilities by geographic area and hence segment non-current non-current (c) Reconciliation of reportable segment revenue, profit, assets and liabilities to the consolidated figures as reported in the consolidated financial statements: 2017 2016 2015 Note RMB million RMB million RMB million Revenue Reportable segment revenue 101,721 98,560 93,844 - Reclassification of expired sales in advance of carriage (i) 754 344 125 Consolidated revenue 102,475 98,904 93,969 2017 2016 2015 Note RMB million RMB million RMB million Profit before income tax Reportable segment profit before income tax 8,620 6,507 5,671 - Differences in depreciation charges for aircraft and engines due to different depreciation lives (ii) (10 ) (10 ) (4 ) Consolidated profit before income tax 8,610 6,497 5,667 2017 2016 Notes RMB million RMB million Assets Reportable segment assets 227,464 210,051 - Differences in depreciation charges for aircraft and engines due to different depreciation lives (ii) 21 31 - Difference in intangible asset arising from the acquisition of Shanghai Airlines (iii) 2,242 2,242 Consolidated assets 229,727 212,324 2017 2016 RMB million RMB million Liabilities Reportable segment liabilities 170,946 159,955 - Others 3 3 Consolidated liabilities 170,949 159,958 Notes: (i) The difference represents the different classification of expired sales in advance of carriage under the PRC Accounting Standards and IFRSs. (ii) The difference is attributable to the differences in the useful lives and residual values of aircraft and engines adopted for depreciation purposes in prior years under the PRC Accounting Standards and IFRSs. Despite the depreciation policies of these assets have been unified under IFRSs and the PRC Accounting Standards in recent years, the changes were applied prospectively as changes in accounting estimates which result in the differences in the carrying amounts and related depreciation charges under IFRSs and the PRC Accounting Standards. (iii) The difference represents the different measurement of the fair value of acquisition cost of the shares from Shanghai Airlines between the PRC Accounting standards and IFRSs, which results in the different measurement of goodwill. |
(Loss)_Gain on Fair Value Chang
(Loss)/Gain on Fair Value Changes of Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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(Loss)/Gain on Fair Value Changes of Derivative Financial Instruments | 8 (LOSS)/GAIN ON FAIR VALUE CHANGES OF DERIVATIVE FINANCIAL INSTRUMENTS 2017 2016 2015 RMB million RMB million RMB million Interest rate swap contracts (note 39(a)) — 2 6 Forward foreign exchange contracts (note 39(b)) (311 ) — — (311 ) 2 6 |
Wages, Salaries and Benefits
Wages, Salaries and Benefits | 12 Months Ended |
Dec. 31, 2017 | |
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Wages, Salaries and Benefits | 9 WAGES, SALARIES AND BENEFITS 2017 2016 2015 RMB million RMB million RMB million Wages, salaries, bonus and allowances 16,474 14,370 12,917 Employee welfare and benefits 133 235 436 Pension (note 37(a)) 1,987 1,769 1,479 Medical insurance (note (a)) 663 606 563 Staff housing fund (note (b)) 886 868 817 Staff housing allowances (note (c)) 150 236 247 Early retirement benefits (note (d)) 27 61 — 20,320 18,145 16,459 Notes: (a) Medical insurance Majority of the Group’s PRC employees participate in the medical insurance schemes organized by municipal governments. (b) Staff housing fund In accordance with the relevant PRC housing regulations, the Group is required to contribute to the state-sponsored housing fund for its employees. At the same time, the employees are required to contribute an amount equal to the Group’s contribution. The employees are entitled to claim the entire sum of the fund contributed under certain specified withdrawal circumstances. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits. (c) Staff housing allowances The Group also provides staff housing allowances in cash to eligible employees. The total entitlement of an eligible employee is principally vested over a period of 20 years. Upon an eligible employee’s resignation or retirement, his or her entitlement would cease and any unpaid entitlement related to past service up to the date of resignation or retirement would be paid. (d) Early retirement benefits The Group implements an early retirement scheme which allows eligible employees to early retire on a voluntary basis. The Group undertakes the obligations to pay the early retirement employees’ basic salaries and certain welfare in the future on a monthly basis according to the early retirement scheme, together with social insurance and housing fund pursuant to the regulation of the local government. The benefits of the early retirement scheme are calculated based on factors including the remaining number of years of service from the date of early retirement to the normal retirement date and the benefits the early retirement employees enjoyed. The present value of the future cash flows expected to be required to settle the obligations is recognized as a provision in “other long-term liabilities”. (e) Emoluments of directors and supervisors Directors’ remuneration for the year, disclosed pursuant to the Listing Rules, section 383(1)(a), (b), (c) and (f) of the Hong Kong Companies Ordinance and Part 2 of the Companies (Disclosure of Information about Benefits of Directors) Regulation, together with the remuneration of supervisors, is as follows: 2017 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun* — — — Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin* — — — Tang Bing* — — — Tian Liuwen* — — — Independent non-executive Li Ruoshan 200 — 200 Shao Ruiqing 200 — 200 Ma Weihua 200 — 200 Cai Hongping 200 — 200 Supervisors Xi Sheng* — — — Feng Jinxiong 584 — 584 Ba Shengji* — — — Hu Jidong 1,549 — 1,549 Jia Shaojun* — — — Total 2,933 — 2,933 2016 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun* — — — Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin* — — — Tang Bing* — — — Tian Liuwen* — — — Independent non-executive Li Ruoshan 160 — 160 Ji Weidong*** — — — Shao Ruiqing 160 — 160 Ma Weihua 160 — 160 Cai Hongping** 100 — 100 Supervisors Yu Faming*&**** — — — Xi Sheng* — — — Xu Haihua***** 288 — 288 Feng Jinxiong 535 — 535 Ba Shengji* — — — Hu Jidong** 426 — 426 Jia Shaojun* & — — — Total 1,829 — 1,829 2015 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun 401 — 401 Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin 365 — 365 Tang Bing 358 — 358 Tian Liuwen****** 419 — 419 Independent non-executive Liu Keya******* 72 — 72 Ji Weidong*** — — — Shao Ruiqing****** 60 — 60 Li Ruoshan 120 — 120 Ma Weihua 120 — 120 Supervisors Yu Faming* — — — Xi Sheng* — — — Xu Haihua****** 298 — 298 Feng Jinxiong 610 — 610 Ba Shengji* — — — Total 2,823 — 2,823 * These directors and supervisors of the Company received emoluments from CEA Holding, the parent company, part of which were in respect of their services to the Company and its subsidiaries. No apportionment has been made as it is impracticable to apportion this amount between their services to the Group and their services to CEA Holding. Mr. Xu Zhao resigned on 6 February 2018. ** These directors and supervisors of the Company were newly appointed during the year ended December 31, 2016. *** Mr. Ji Weidong has filed his resignation during the year ended December 31, 2015 and has fulfilled his responsibility until new director being appointed by the board in June 2016. **** Mr. Yu Faming resigned during the year ended December 31, 2016. ***** Mr. Xu Haihua resigned during the year ended December 31, 2016. ****** These directors and supervisors of the Company were newly appointed during the year ended December 31, 2015. ******* Mr. Liu Keya retired during the year ended December 31, 2015. During the years ended December 31, 2017, 2016 and 2015, no directors and supervisors waived their emoluments. (f) Five highest paid individuals None of the Company’s directors and supervisors was among the five highest paid individuals in the Group for the year ended December 31, 2017 (2016 and 2015: Nil). The emoluments payable to the five highest paid individuals were as follows: 2017 2016 2015 RMB million RMB million RMB million Wages, salaries, bonus and allowances 8,702 9,319 8,104 The number of five highest paid individuals whose emoluments fell within the following bands is as follows: Number of individuals 2017 2016 2015 HK$1,500,001 to HK$2,000,000 — — 5 HK$2,000,001 to HK$2,500,000 5 5 — 5 5 5 During the year ended December 31, 2017, no emoluments were paid by the Group to the directors, supervisors and the five highest paid individuals as an inducement to join or upon joining the Group, or as a compensation for loss of office (2016 and 2015: Nil). |
Impairment Charges
Impairment Charges | 12 Months Ended |
Dec. 31, 2017 | |
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Impairment Charges | 10 IMPAIRMENT CHARGES 2017 2016 2015 RMB million RMB million RMB million Write-down of flight equipment spare parts to net realisable value (note 26) 112 10 88 Impairment charge on property, plant and equipment (note 18) 379 29 48 Impairment charge on assets of a disposal group classified as held for sale (note 16) 3 — 33 Impairment charge on available-for-sale — — 100 Accrual/(reversal) of impairment charge on trade receivables (note 27) (3 ) (1 ) 12 Reversal of impairment charge on other receivables — (9 ) (53 ) 491 29 228 |
Operating Profit
Operating Profit | 12 Months Ended |
Dec. 31, 2017 | |
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Operating Profit | 11 OPERATING PROFIT Operating profit is stated after charging the following items: 2017 2016 2015 RMB million RMB million RMB million Amortization of intangible assets (note 17) 142 129 85 Depreciation of property, plant and equipment (note 18) – owned 7,065 6,388 5,350 – leased (finance leases) 6,302 5,563 4,972 Depreciation of investment properties (note 19) 12 11 4 Amortization of long-term deferred assets included in other non-current 402 394 388 Amortization of prepayments for land use right 45 63 60 Consumption of flight equipment spare parts 1,131 1,198 974 Auditors’ remuneration 19 18 17 Subsidy income (note 6) (4,941 ) (4,531 ) (4,131 ) Gain on disposal of a subsidiary (note 6) (1,754 ) — (41 ) |
Finance Income
Finance Income | 12 Months Ended |
Dec. 31, 2017 | |
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Finance Income | 12 FINANCE INCOME 2017 2016 2015 RMB million RMB million RMB million Interest income 111 96 66 Foreign exchange difference, net (note 13(b)) 2,001 — — 2,112 96 66 |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2017 | |
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Finance Costs | 13 FINANCE COSTS 2017 2016 2015 RMB million RMB million RMB million Interest on bank borrowings 1,590 1,529 1,613 Interest relating to obligations under finance leases 1,845 1,349 867 Interest relating to post-retirement benefit obligations (note37) 98 88 114 Interest on bonds and debentures 381 359 483 Interest relating to interest rate swap contracts (note 39(a)) 63 122 128 Less: amount capitalized into advanced payments on acquisition of aircraft (note (a)) (note21) (793 ) (749 ) (1,014 ) amounts capitalized into construction in progress (note (a)) — — (2 ) 3,184 2,698 2,189 Foreign exchange difference, net (note (b)) — 3,574 4,987 3,184 6,272 7,176 Notes: (a) The average interest rate used for interest capitalization was 3.40% per annum for the year ended December 31, 2017 (2016: 3.25%, 2015: 3.09%). (b) The exchange income and losses were primarily related to the translation of the Group’s foreign currency denominated borrowings and obligations under finance leases. |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2017 | |
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Income Tax Expense | 14 INCOME TAX EXPENSE Income tax charged to profit or loss was as follows: 2017 2016 2015 RMB million RMB million RMB million Income tax 1,962 1,396 737 Deferred taxation (note 38) (162 ) 146 (113 ) 1,800 1,542 624 Pursuant to the “Notice of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Issues Concerning Relevant Tax Policies for Enhancing the Implementation of Western Region Development Strategy” (Cai Shui [2011] No.58), and other series of tax regulations, enterprises located in the western regions and engaged in the industrial activities as listed in the “Catalogue of Encouraged Industries in Western Regions”, will be entitled to a reduced corporate income tax rate of 15% from 2011 to 2020 upon approval from tax authorities. CEA Yunnan, a subsidiary of the Company, obtained approval from tax authorities and has been entitled to a reduced corporate income tax rate of 15% from 1 January 2011. The Company’s Sichuan branch, Gansu branch and Xibei branch also obtained approvals from respective tax authorities and are entitled to a reduced corporate income tax rate of 15%. The subsidiaries incorporated in Hong Kong are subject to Hong Kong profits tax rate of 16.5% (2016:16.5%, 2015: 16.5%). The Company and its subsidiaries except for CEA Yunnan, Sichuan branch, Gansu branch and Xibei branch and those incorporated in Hong Kong, are generally subject to the PRC standard corporate income tax rate of 25% (2016: 25%, 2015: 25%). A reconciliation of the tax expense applicable to profit before tax at the statutory rates for the countries in which the Company and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates, are as follows: 2017 2016 2015 RMB million RMB million RMB million Profit before income tax 8,610 6,497 5,667 Tax calculated at the tax rate of 25% (2016: 25%, 2015: 25%) 2,152 1,624 1,417 Lower tax rates enacted by local authority (87 ) (102 ) (156 ) Share of results of associates and joint ventures (63 ) (37 ) (38 ) Income not subject to tax (13 ) (10 ) — Expenses not deductible for tax 38 117 104 Utilization of previously unrecognized tax losses (253 ) (51 ) (1 ) Unrecognized tax losses for the year 48 13 20 Utilization of deductible temporary differences (13 ) (10 ) (686 ) Unrecognized deductible temporary differences 2 6 (36 ) Research and development costs’ super deduction (11 ) (8 ) — Tax charge 1,800 1,542 624 Effective tax rate 20.91 % 23.73 % 11.01 % The Group operates international flights to overseas destinations. There was no material overseas taxation for the years ended December 31, 2017, 2016 and 2015, as there are avoidance of double tax treaties between the PRC and the corresponding jurisdictions (including Hong Kong) relating to the aviation business. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
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Earnings Per Share | 15 EARNINGS PER SHARE The calculation of basic earnings per share was based on the profit attributable to equity holders of the Company of RMB6,342 million (2016: RMB4,498 million, 2015: RMB4,537 million) and the weighted average number of shares of 14,467,585,682 (2016: 13,811,136,000, 2015: 12,818,509,000) in issue during the year ended December 31, 2017. The Company had no potentially dilutive options or other instruments relating to the ordinary shares in issue during the years ended December 31, 2017, 2016 and 2015. |
Held for sale assets and liabil
Held for sale assets and liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Held for sale assets and liabilities | 16 HELD FOR SALE ASSETS AND LIABILITIES On 27 April 2017, the Group’s Board of Directors came to a resolution to sell the equity interests of Shanghai Airlines Hotel Investment Management Co., Ltd. (“Shanghai Airlines Hotel”), a wholly owned subsidiary. On 29 December 2017, the Group entered into a share transfer agreement with China Eastern Airlines Development Co., Ltd., a wholly owned subsidiary of CEA Holding, to transfer its 100% equity interests in Shanghai Airlines Hotel for a cash consideration of RMB7,100. The transfer is expected to be completed within a year from the reporting date. At 31 December 2017, Shanghai Airlines Hotel was classified as a disposal group held for sale. The major classes of assets and liabilities (after eliminating of inter-company payable of RMB6 million) of Shanghai Airlines Hotel classified as held for sale as at 31 December 2017 are as follows: 2017 RMB million Assets Property, plant and equipment 2 Other non-current 1 Trade and notes receivables 2 Cash and cash equivalents 11 Inventory 1 17 Provision for impairment of assets classified as held for sale (3 ) Assets classified as held for sale 14 Liabilities Trade and bills payables (2 ) Other payables and accruals (6 ) Liabilities directly associated with the assets classified as held for sale (8 ) Net assets directly associated with the disposal group 6 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Intangible Assets | 17 INTANGIBLE ASSETS Goodwill Computer Others (note(a)) software (note(b)) Total RMB million RMB million RMB million RMB million 31 December 2017 Cost at 1 January 2017, net of accumulated amortization 11,270 288 66 11,624 Additions — 126 — 126 Transfer from construction in process — 3 — 3 Amortization provided during the year — (109 ) (33 ) (142 ) Disposal of a subsidiary (note 43) — (14 ) — (14 ) Disposals — (1 ) — (1 ) At 31 December 2017 11,270 293 33 11,596 At 31 December 2017: Cost 11,270 904 98 12,272 Accumulated amortization — (611 ) (65 ) (676 ) Net carrying amount 11,270 293 33 11,596 31 December 2016 Cost at 1 January 2016, net of accumulated amortization 11,270 252 — 11,522 Additions — 124 98 222 Transfer from construction in process — 9 — 9 Amortization provided during the year — (97 ) (32 ) (129 ) Disposals — — — — At 31 December 2016 11,270 288 66 11,624 At 31 December 2016: Cost 11,270 812 98 12,180 Accumulated amortization — (524 ) (32 ) (556 ) Net carrying amount 11,270 288 66 11,624 Notes: (a) The balance represents goodwill arising from the acquisition of Shanghai Airlines. The value of the Goodwill is attributable to strengthening the competitiveness of the Group’s airline transportation operations, attaining synergy through integration of the resources and accelerating the development of international air transportation in Shanghai. For the purpose of impairment assessment, goodwill was allocated to the cash-generating unit (“CGU”) that the Group operates and benefits from the acquisition. The recoverable amount of the CGU has been determined based on a value-in-use value-in-use (b) The balance represents the costs incurred to acquire the use right of certain flight schedules (i.e. timeslots for flights’ taking off/landing). |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
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Property, Plant and Equipment | 18 PROPERTY, PLANT AND EQUIPMENT Aircraft, engines and flight equipment Other Held under property, plant Construction Owned finance leases Buildings and equipment in progress Total RMB million RMB million RMB million RMB million RMB million RMB million 31 December 2017 At 31 December 2016 and at 1 January 2017: Cost 99,653 97,064 8,324 8,201 2,398 215,640 Accumulated depreciation and impairment (34,914 ) (19,890 ) (2,450 ) (5,206 ) — (62,460 ) Net carrying amount 64,739 77,174 5,874 2,995 2,398 153,180 At 1 January 2017, net of accumulated depreciation and impairment 64,739 77,174 5,874 2,995 2,398 153,180 Additions 3,659 8,277 276 808 2,688 15,708 Disposals (656 ) (264 ) (1 ) (103 ) — (1,024 ) Transfer from construction in progress — — 1,019 18 (1,037 ) — Transfer from advanced payments on acquisition of aircraft (note 21) 1,701 13,378 — — — 15,079 Transfer from investment properties (note 19) — — 9 — — 9 Transfer to investment properties (note 19) — — (2 ) — — (2 ) Assets included in held for sale — — — (2 ) — (2 ) Transfer to other non-current — — — — (327 ) (327 ) Depreciation provided during the year (6,154 ) (6,302 ) (298 ) (613 ) — (13,367 ) Disposal of a subsidiary (note 43) (199 ) (1,220 ) (375 ) (208 ) (17 ) (2,019 ) Impairment (379 ) — — — — (379 ) Transfers 6,283 (6,283 ) (24 ) 24 — — At 31 December 2017, net of accumulated depreciation and impairment 68,994 84,760 6,478 2,919 3,705 166,856 At 31 December 2017: Cost 111,297 105,801 8,809 7,934 3,705 237,546 Accumulated depreciation and impairment (42,303 ) (21,041 ) (2,331 ) (5,015 ) — (70,690 ) Net carrying amount 68,994 84,760 6,478 2,919 3,705 166,856 During the year, the Group recognised an impairment loss of approximately RMB379 million relating to aircraft, engines and flight equipment (2016: RMB29 million, 2015: RMB48 million). The recoverable amounts of these impaired aircraft, engines and flight equipment are determined at the higher of their fair value less costs to sell and value in use. As at 31 December 2017, certain aircraft and buildings owned by the Group with an aggregate net carrying amount of approximately RMB11,207 million (2016: approximately RMB17,559 million) were pledged as collateral under certain borrowing arrangements (note 34). As at 31 December 2017, the ownership certificates of buildings with a net carrying amount of RMB1,397 million (31 December 2016: RMB1,455 million) have not been obtained. The directors of the Company are of the opinion that the Group legally owns and has the rights to use the aforesaid buildings, and that there is no material adverse impact on the overall financial position of the Group. Aircraft, engines and flight equipment Other Owned Held under property, plant Construction finance leases Buildings and equipment in progress Total RMB million RMB million RMB million RMB million RMB million RMB million 31 December 2016 At 31 December 2015 and at 1 January 2016: Cost 80,402 89,146 7,993 7,486 1,771 186,798 Accumulated depreciation and impairment (28,557 ) (18,029 ) (2,266 ) (4,704 ) — (53,556 ) Net carrying amount 51,845 71,117 5,727 2,782 1,771 133,242 At 1 January 2016, net of accumulated depreciation and impairment 51,845 71,117 5,727 2,782 1,771 133,242 Additions 9,411 4,485 5 651 1,477 16,029 Disposals (324 ) (58 ) (21 ) (212 ) — (615 ) Transfer from construction in progress — — 474 328 (802 ) — Transfer from advanced payments on acquisition of aircraft (note 21) 12,236 4,354 — — — 16,590 Transfer to investment properties (note 19) — — (38 ) — — (38 ) Transfer to other non-current — — — — (48 ) (48 ) Depreciation provided during the year (5,561 ) (5,563 ) (273 ) (554 ) — (11,951 ) Impairment (29 ) — — — — (29 ) Transfers (2,839 ) 2,839 — — — — At 31 December 2016, net of accumulated depreciation and impairment 64,739 77,174 5,874 2,995 2,398 153,180 At 31 December 2016: Cost 99,653 97,064 8,324 8,201 2,398 215,640 Accumulated depreciation and impairment (34,914 ) (19,890 ) (2,450 ) (5,206 ) — (62,460 ) Net carrying amount 64,739 77,174 5,874 2,995 2,398 153,180 |
Investment Properties
Investment Properties | 12 Months Ended |
Dec. 31, 2017 | |
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Investment Properties | 19 INVESTMENT PROPERTIES 2017 2016 RMB million RMB million Cost At 1 January 402 344 Transfer from property, plant and equipment (note 18) 4 58 Transfer to property, plant and equipment (note 18) (14 ) — At 31 December 392 402 Accumulated depreciation At 1 January 81 50 Transfer from property, plant and equipment (note 18) 2 20 Transfer to property, plant and equipment (note 18) (5 ) — Charge for the year (note 11) 12 11 At 31 December 90 81 Net book amount At 31 December 302 321 As at 31 December 2017, the fair value of the investment properties was approximately RMB628 million (2016: RMB604 million) according to a valuation performed by an independent professionally qualified valuer. The investment properties are leased to third parties and related parties under operating leases. Rental income totalling RMB39 million (2016: RMB37 million, 2015: RMB30 million) was received by the Group during the year in respect of the leases. As at 31 December 2017, the carrying amount of the investment properties for which the ownership certificates of buildings have not been obtained was RMB112 million (2016: RMB119 million). The directors of the Company are of the opinion that the Group legally owns and has the rights to use the aforesaid investment properties, and that there is no material adverse impact on the overall financial position of the Group. Fair value hierarchy The following table illustrates the fair value measurement hierarchy of the Group’s investment properties: Buildings Fair value measurement using Quoted prices Significant Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB million RMB million RMB million RMB million Not measured at fair value but fair value is disclosed: As at 31 December 2017 — 198 430 628 As at 31 December 2016 — 183 421 604 During the year, there were no transfers of fair value measurements between Level 1 and Level 2 and no transfers into or out of Level 3 (2016: Nil). The fair values of the buildings with comparable market price have been estimated using significant observable inputs and calculated by adjusted market price considering the condition and location of the buildings. The fair values of the buildings without comparable market price have been estimated by a discounted cash flow valuation model using significant unobservable inputs such as estimated rental value, rent growth, long term vacancy rate and discounted rate. |
Prepayments for Land Use Right
Prepayments for Land Use Right | 12 Months Ended |
Dec. 31, 2017 | |
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Prepayments for Land Use Right | 20 PREPAYMENTS FOR LAND USE RIGHT 2017 2016 RMB million RMB million Carrying amount at 1 January 2,064 2,094 Recognized during the year (347 ) (30 ) Carrying amount at 31 December 1,717 2,064 Prepayments for land use right represent unamortized prepayments for land use rights. |
Advanced Payments on Acquisitio
Advanced Payments on Acquisition of Aircraft | 12 Months Ended |
Dec. 31, 2017 | |
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Advanced Payments on Acquisition of Aircraft | 21 ADVANCED PAYMENTS ON ACQUISITION OF AIRCRAFT 2017 2016 RMB million RMB million At 1 January 23,357 21,207 Additions 15,681 17,991 Interest capitalized (note 13) 793 749 Transfer to property, plant and equipment (note 18) (15,079 ) (16,590 ) At 31 December 24,752 23,357 |
Investments in Associates
Investments in Associates | 12 Months Ended |
Dec. 31, 2017 | |
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Investments in Associates | 22 INVESTMENTS IN ASSOCIATES 2017 2016 RMB million RMB million Unlisted investments, cost 1,116 1,069 Share of net assets 538 467 1,654 1,536 The movements in investments in associates were as follows: 2017 2016 RMB million RMB million At 1 January 1,536 1,543 Additions 47 — Share of results of associates 202 148 Share of revaluation on available-for-sale 10 (1 ) Dividend received during the year (141 ) (154 ) At 31 December 1,654 1,536 Particulars of the principal associates, which are limited liability companies, are as follows: Company name Place of establishment and Registered capital Attributable Principal activities 2017 2016 2017 2016 Million Million Eastern Air Group Finance Co., Ltd. (“Eastern Air Finance Company”) PRC/Mainland China 6 December 1995 RMB 2,000 RMB 2,000 25 % 25 % Provision of financial services to group companies of CEA Holding China Eastern Air Catering Investment Co., Ltd. PRC/Mainland China 17 November 2003 RMB 350 RMB 350 45 % 45 % Provision of air catering services Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. (“Shanghai P&W”) (note) PRC/Mainland China 28 March 2008 USD 40 USD 40 51 % 51 % Provision of aircraft, engine and other related components maintenance services New Shanghai International Tower Co., Ltd. PRC/Mainland China 17 November 1992 RMB 167 RMB 167 20 % 20 % Property development provision and management services Eastern Aviation Import & Export Co., Ltd. (“Eastern Import & Export”) PRC/Mainland China 9 June 1993 RMB 80 RMB 80 45 % 45 % Provision of aviation equipment and spare parts purchase Eastern Aviation Advertising Service Co., Ltd. (“Eastern Advertising”) PRC/Mainland China 4 March 1986 RMB 200 RMB 200 45 % 45 % Provision of aviation advertising agency services Shanghai Collins Aviation Maintenance Service Co., Ltd. (“Collins Aviation”) PRC/Mainland China 27 September 2002 USD 7 USD 7 35 % 35 % Provision of airline electronic product maintenance services Note: In 2008, the Company entered into an agreement with United Technologies International Corporation (“Technologies International”) to establish Shanghai P&W, in which the Company holds a 51% interest. According to the shareholder’s agreement, Technologies International has the power to govern the financial and operating policies and in this respect the Company accounts for Shanghai P&W as an associate. The following table illustrates the aggregate financial information of the Group’s associates that were not individually material: 2017 2016 RMB million RMB million Share of the associates’ profit for the year 202 148 Share of the associates’ other comprehensive income 10 (1 ) Share of the associates’ total comprehensive income 212 147 Aggregate carrying amount of the Group’s interests in the associates 1,654 1,536 |
Investments in Joint Ventures
Investments in Joint Ventures | 12 Months Ended |
Dec. 31, 2017 | |
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Investments in Joint Ventures | 23 INVESTMENTS IN JOINT VENTURES 2017 2016 RMB million RMB million Unlisted investments, cost 369 352 Share of net assets 188 172 557 524 The movements in investments in joint ventures were as follows: 2017 2016 RMB million RMB million At 1 January 524 518 Additions 17 — Share of results 49 39 Dividend received during the year (33 ) (33 ) At 31 December 557 524 Particulars of the principal joint ventures, which are limited liability companies, are as follows: Company name Place of establishment and Paid-up Attributable Principal activities 2017 2016 2017 2016 Million Million Shanghai Technologies Aerospace Co., Ltd. (“Technologies Aerospace”) (note) PRC/Mainland China 28 September 2004 USD 73 USD 73 51 % 51 % Provision of repair and maintenance services Shanghai Eastern Union Aviation Wheels & Brakes Maintenance Services Overhaul Engineering Co., Ltd. (“Wheels & Brakes”) PRC/Mainland China 28 December 1995 USD 2 USD 2 40 % 40 % Provision of spare parts repair and maintenance services Eastern China Kaiya System Integration Co., Ltd. (“China Kaiya”) PRC/Mainland China 21 May 1999 RMB 10 RMB 10 41 % 41 % Provision of computer systems development and maintenance services CAE Melbourne Flight Training Pty Ltd. (“CAE Melbourne”) Australia 9 March 2007 AUD 11 AUD 11 50 % 50 % Provision of flight training services Shanghai Hute Aviation Technology Co., Ltd. (“Shanghai Hute”) PRC/Mainland China 9 April 2003 RMB 30 RMB 30 50 % 50 % Provision of equipment maintenance services Xi’an CEA SAFRAN Landing Systems Services Co., Ltd. (“XIESA”) PRC/Mainland China 12 July 2017 USD 40 — 50 % — Provision of aircraft, engine and other related components maintenance services Note: Under a joint venture agreement with a joint venture partner of Technologies Aerospace dated 10 March 2003, both parties have agreed to share the control over the economic activities of Technologies Aerospace with the joint venture partner. Any strategic financial and operating decisions relating to the activities of Technologies Aerospace require the unanimous consent of the Company and the joint venture partner. The following table illustrates the aggregate financial information of the Group’s joint ventures that were not individually material: 2017 2016 RMB million RMB million Share of the joint ventures’ profit for the year 49 39 Share of the joint ventures’ total comprehensive income 49 39 Aggregate carrying amount of the Group’s interests in the joint ventures 557 524 |
Available-for-sale Investments
Available-for-sale Investments | 12 Months Ended |
Dec. 31, 2017 | |
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Available-for-sale Investments | 24 AVAILABLE-FOR-SALE 2017 2016 RMB million RMB million Listed equity investments, at fair value 693 538 Unlisted equity investments, at cost 107 107 800 645 During the year, the gross gain in respect of the Group’s available-for-sale The above investments consist of investments in equity securities which were designated as available-for-sale As at 31 December 2017, certain unlisted equity investments were stated at cost less impairment because the range of reasonable fair value estimates is so significant that the directors are of the opinion that their fair value cannot be measured reliably. The Group does not intend to dispose of them in the near future. |
Other Non-current Assets
Other Non-current Assets | 12 Months Ended |
Dec. 31, 2017 | |
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Other Non-current Assets | 25 OTHER NON-CURRENT 2017 2016 RMB million RMB million Deposits relating to aircraft held under operating leases 217 285 Deferred pilot recruitment costs 1,288 1,182 Rebate receivables on aircraft acquisitions 65 83 Rental prepayment — 426 Prepayment for acquisition of property, plant and equipment 681 299 Other long term assets 676 694 2,927 2,969 |
Flight Equipment Spare Parts
Flight Equipment Spare Parts | 12 Months Ended |
Dec. 31, 2017 | |
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Flight Equipment Spare Parts | 26 FLIGHT EQUIPMENT SPARE PARTS 2017 2016 RMB million RMB million Flight equipment spare parts 2,716 2,713 Less: provision for spare parts (531 ) (465 ) 2,185 2,248 Movements in the Group’s provision for impairment of flight equipment spare parts were as follows: 2017 2016 RMB million RMB million At 1 January 465 541 Accrual (note 10) 112 10 Amount written off in relation to disposal of spare parts (1 ) (86 ) Disposal of a subsidiary (45 ) — At 31 December 531 465 |
Trade and Notes Receivables
Trade and Notes Receivables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and Notes Receivables | 27 TRADE AND NOTES RECEIVABLES The credit terms given to trade customers are determined on an individual basis. 2017 2016 RMB million RMB million Trade receivables 2,124 2,630 Notes receivable — 30 At 31 December 2,124 2,660 An ageing analysis of the trade and notes receivables as at the end of the reporting period, based on the invoice/billing date, was as follows: 2017 2016 RMB million RMB million Within 90 days 1,912 2,324 91 to 180 days 38 167 181 to 365 days 100 102 Over 365 days 162 182 2,212 2,775 Provision for impairment of trade receivables (88 ) (115 ) 2,124 2,660 Trade and notes receivables that were neither overdue nor impaired relate to a large number of independent sales agents for whom there was no recent history of default. As at 31 December 2017, trade and notes receivables of RMB131 million (2016: RMB267 million) were past due but not impaired relate to a number of independent customers that have a good track record with the Group. Based on past experience, the directors of the Company are of the opinion that no provision for impairment is necessary in respect of these balances as there has not been a significant change in credit quality and the balances are still considered fully recoverable. The ageing analysis of these trade and notes receivables was as follows: 2017 2016 RMB million RMB million Past due: Within 90 days 38 167 91 to 180 days 93 30 181 to 365 days — 70 131 267 Movements in the Group’s provision for impairment of trade and notes receivables were as follows: 2017 2016 RMB million RMB million At 1 January 115 216 Impairment losses recognized (note 10) 6 8 Amount written off during the year as uncollectible (13 ) (100 ) Impairment losses reversed (note 10) (9 ) (9 ) Disposal of subsidiary (5 ) — Provision included in held for sale (6 ) — At 31 December 88 115 Included in the above provision for impairment of trade receivables is a provision for individually impaired trade receivables of RMB46 million (2016: RMB66 million) with a carrying amount before provision of RMB46 million (2016: RMB66 million). The remaining provision of RMB42 million relate to impaired trade receivables with a carrying amount before provision of RMB123 million as at 31 December 2017 which customers that were in financial difficulties or were in default in interest and/or principal payments and only a portion of the receivables is expected to be recovered. The net impacts of recognition and reversal of provisions for impaired receivables have been included in “Impairment charges” in profit or loss (note 10). Amounts charged to the allowance account are generally written off when there is no expectation of recovering. |
Prepayments and Other Receivabl
Prepayments and Other Receivables | 12 Months Ended |
Dec. 31, 2017 | |
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Prepayments and Other Receivables | 28 PREPAYMENTS AND OTHER RECEIVABLES 2017 2016 RMB million RMB million Value added tax recoverable 3,662 1,746 Value added tax refundable 1,387 615 Subsidy receivable 1,450 762 Prepaid corporate income tax 139 283 Advance to suppliers 218 2,327 Prepaid aircraft operating lease rentals 319 382 Dividend receivable 183 — Rebate receivables on aircraft acquisitions 944 1,489 Rental deposits 200 233 Amounts due from related parties (note 47(c)(i)) 569 616 Deposits relating to aircraft held under operating leases 76 140 Others 365 838 9,512 9,431 Provision for impairment of other receivables (198 ) (200 ) 9,314 9,231 |
Restricted Bank Deposits and Sh
Restricted Bank Deposits and Short-term Bank Deposits | 12 Months Ended |
Dec. 31, 2017 | |
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Restricted Bank Deposits and Short-term Bank Deposits | 29 RESTRICTED BANK DEPOSITS AND SHORT-TERM BANK DEPOSITS 2017 2016 RMB million RMB million Bank deposits with original maturity over a year — 3 Restricted bank deposits 51 40 51 43 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
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Cash and Cash Equivalents | 30 CASH AND CASH EQUIVALENTS 2017 2016 RMB million RMB million Cash 2 3 Bank balances 4,603 1,692 4,605 1,695 At the end of the reporting period, the cash and bank balances of the Group denominated in RMB amounted to RMB3,239 million (2016: RMB814 million). The RMB is not freely convertible into other currencies, however, under Mainland China’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorized to conduct foreign exchange business. Cash at banks earns interest at floating rates based on daily bank deposit rates. The bank balances are deposited with creditworthy banks and financial institutions with no recent history of default. |
Trade and Bills Payables
Trade and Bills Payables | 12 Months Ended |
Dec. 31, 2017 | |
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Trade and Bills Payables | 31 TRADE AND BILLS PAYABLES An aged analysis of the trade and bills payables as at the end of the reporting period was as follows: 2017 2016 RMB million RMB million Within 90 days 2,791 2,994 91 to 180 days 59 57 181 to 365 days 161 83 1 to 2 years 71 77 Over 2 years 102 165 3,184 3,376 As at 31 December 2017, trade and bills payable balances included amounts due to related parties of RMB241 million (2016: RMB232 million) (note 47(c)(ii)). As at 31 December 2017, bills payable amounted to RMB1,173 million (2016: 1,120 million). |
Other Payables and Accruals
Other Payables and Accruals | 12 Months Ended |
Dec. 31, 2017 | |
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Other Payables and Accruals | 32 OTHER PAYABLES AND ACCRUALS 2017 2016 RMB million RMB million Salaries, wages and benefits 2,711 3,662 Take-off 2,707 2,323 Fuel cost 1,369 1,774 Expenses related to aircraft overhaul conducted 1,760 1,253 Advance from customers 1,342 966 Duties and levies payable 1,483 1,507 Other accrued operating expenses 1,848 1,561 Deposits received from ticket sales agents 549 764 Current portion of other long-term liabilities (note 36) 1,038 635 Staff housing allowance 323 363 Amounts due to related parties (note 47(c)(ii)) 2,111 2,534 Current portion of post-retirement benefit obligations (note 37(b)) 168 173 Others 2,455 2,735 19,864 20,250 |
Obligations Under Finance Lease
Obligations Under Finance Leases | 12 Months Ended |
Dec. 31, 2017 | |
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Obligations Under Finance Leases | 33 OBLIGATIONS UNDER FINANCE LEASES As at 31 December 2017, the Group had 235 aircraft (2016: 226 aircraft) under finance leases. Under the terms of the leases, the Group has the option to purchase, at or near the end of the lease terms, certain aircraft at either fair market value or a percentage of the respective lessors’ defined cost of the aircraft. The obligations under finance leases are principally denominated in US dollars. The future minimum lease payments (including interest), and the present values of the minimum lease payments under finance leases were as follows: Present values Present values Minimum lease of minimum Minimum lease of minimum payments lease payments payments lease payments 2017 2017 2016 2016 RMB million RMB million RMB million RMB million Within one year 11,651 8,123 In the second year 10,408 7,526 In the third to fifth years, inclusive 27,895 21,905 After the fifth year 30,196 33,277 Total 80,105 66,868 70,831 61,041 Less: amounts repayable within one year (11,651 ) (9,241 ) (8,123 ) (6,447 ) Long-term portion 68,454 57,627 62,708 54,594 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
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Borrowings | 34 BORROWINGS 2017 2016 RMB million RMB million Non-current Long-term bank borrowings – secured (note (a)) 4,816 7,169 – unsecured 108 3,435 Guaranteed bonds (note (b)) 10,956 8,476 Unsecured bonds (note (b)) 8,831 8,810 24,711 27,890 Current Current portion of long-term bank borrowings – secured (note (a)) 1,028 1,724 – unsecured 3,103 135 Short-term bank borrowings – unsecured 24,959 9,983 Short-term debentures (note (c)) 10,000 17,000 39,090 28,842 Total borrowings 63,801 56,732 The borrowings are repayable as follows: Within one year 39,090 28,842 In the second year 6,527 4,833 In the third to fifth years, inclusive 8,797 13,281 After the fifth year 9,387 9,776 Total borrowings 63,801 56,732 Notes: (a) As at 31 December 2017, the secured bank borrowings of the Group were pledged by the related aircraft and buildings with an aggregate carrying amount of RMB11,207 million (2016: RMB17,559 million) (note 18). (b) On 18 March 2013, the Company issued ten-year On 15 June 2016, the Company issued three-year medium-term bonds with a principal amount of RMB3 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.15% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 15 June 2019. On 14 July 2016, the Company issued five-year medium-term bonds with a principal amount of RMB4 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.39% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 14 July 2021. On 20 July 2016, the Company issued three-year medium-term bonds with a principal amount of RMB1.5 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.00% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 20 July 2019. On 28 September 2016, the Company issued three-year guaranteed notes with a principal amount of KRW120 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.05% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019. Korean Development Bank has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds. On 28 September 2016, the Company issued three-year notes with a principal amount of KRW55 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.85% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019. On 24 October 2016, the Company issued ten-year On 16 November 2017, Eastern Air Overseas issued three-year corporate bonds with a total principal amount of SGD 500 million, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.80% per annum. The bonds are payable semi-annually. The principal of the bonds will mature and become repayable on 16 November 2020. The Company has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds (note 47(d)). (c) On 21 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 270 days. The debentures bear interest at the rate of 4.16% per annum. On 22 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 150 days. The debentures bear interest at the rate of 4.25% per annum. On 12 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.25% per annum. On 26 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.20% per annum. The terms of the long-term borrowings and bonds were summarized as follows: Interest rate and final maturities 2017 2016 RMB million RMB million Long-term bank borrowings RMB denominated interest rates ranging from3.10% to 3.48% with final maturities through 2021 (2016: 3.40% to 4.41%) 3,028 3,278 USD denominated interest rates ranging from 6-month 6-month 6-month 6-month 2,003 4,970 EUR denominated interest rates at 3 months Euribor+0.5% with final maturities through 2026 (2016: 3 months Euribor+0.5%) 4,024 4,215 Guaranteed bonds RMB denominated interest rates ranging from 3.03% to 5.05% with final maturities through 2026 (2016: 3.03% to 5.05%) 7,794 7,792 SGD denominated interest rates at 2.80% with final maturities through 2020 2,435 — KRW denominated interest rate at 2.05% with final maturities through 2019 (2016: 2.05%) 727 684 Unsecured bonds RMB denominated interest rates ranging from 3.00% to 3.39% with final maturities through 2021 (2016: from 3.00% to 3.39%) 8,500 8,500 KRW denominated interest rate at 2.85% with final maturities through 2019 (2016: 2.85%) 331 310 Total long-term borrowings and bonds 28,842 29,749 Short-term borrowings of the Group are repayable within one year. As at 31 December 2017, the interest rates relating to such borrowings ranged from 0.70% to 4.35% per annum (2016: 1.49% to 4.35% per annum). |
Provision for Return Condition
Provision for Return Condition Checks for Aircraft Under Operating Leases | 12 Months Ended |
Dec. 31, 2017 | |
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Provision for Return Condition Checks for Aircraft Under Operating Leases | 35 PROVISION FOR RETURN CONDITION CHECKS FOR AIRCRAFT UNDER OPERATING LEASES 2017 2016 RMB million RMB million At 1 January 3,670 3,503 Accrual 1,214 1,010 Utilization (1,865 ) (843 ) At 31 December 3,019 3,670 Less: current portion (981 ) (1,175 ) Long-term portion 2,038 2,495 In respect of aircraft and engines under operating leases, the Group has obligations to fulfil certain return conditions under the leases. The balance as at 31 December 2017 and 2016 represented the provision for the estimated cost of these return condition checks which is made on a straight-line basis over the term of the leases. |
Other Long-term Liabilities
Other Long-term Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Other Long-term Liabilities | 36 OTHER LONG-TERM LIABILITIES 2017 2016 RMB million RMB million Fair value of unredeemed points awarded under the Group’s frequent flyer programmes 2,030 1,750 Long-term duties and levies payable relating to finance leases 1,411 1,608 Other long-term payables 1,321 1,151 4,762 4,509 Less: current portion included in other payables and accruals (note 32) (1,038 ) (635 ) Long-term portion 3,724 3,874 |
Post-Retirement Benefit Obligat
Post-Retirement Benefit Obligations | 12 Months Ended |
Dec. 31, 2017 | |
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Post-Retirement Benefit Obligations | 37 POST-RETIREMENT BENEFIT OBLIGATIONS (a) Pension—defined contribution The group companies participate in defined contribution retirement schemes organized by municipal governments of various provinces in which the group companies operate. Substantially all of the Group’s PRC employees are eligible to participate in these defined contribution retirement schemes. In addition, the group companies implemented an additional defined contribution retirement pension scheme for eligible employees since 2014. (b) Post-retirement benefits In addition to the above schemes, the Group provides eligible retirees with other post-retirement benefits, including retirement subsidies, transportation allowance as well as other welfare. The expected cost of providing these post-retirement benefits is actuarially determined and recognized by using the projected unit credit method, which involves a number of assumptions and estimates, including inflation rate, discount rate and etc. The plan is exposed to interest rate risk and the risk of changes in the life expectancy for pensioners. The most recent actuarial valuation of the post-retirement benefit obligations was carried out at 31 December 2017 with assistance from a third party consultant using the projected unit credit actuarial valuation method. The post-retirement benefit obligations recognized in the consolidated statement of financial position are as follows: 2017 2016 RMB million RMB million Post-retirement benefit obligations 2,670 3,063 Less: current portion (168 ) (173 ) Long-term portion 2,502 2,890 The principal actuarial assumptions utilized as at the end of the reporting period are as follows: 2017 2016 Discount rates for post-retirement benefits 4.10 % 3.50 % Mortality rate China Insurance China Insurance Life Mortality Life Mortality Table (2010-2013). CL5 for Table (2010-2013). CL5 for Male and CL6 for Female Male and CL6 for Female Annual increase rate of post-retirement medical expenses 6.50 % 6.50 % Inflation rate of pension benefits 2.50 % 2.50 % A quantitative sensitivity analysis for significant assumptions at the end of the reporting period is shown below: Increase/ Increase/ post-retirement post-retirement Increase benefit Decrease benefit in rate obligations in rate obligations % RMB million % RMB million 2017 Discount rate for post-retirement benefits 0.25 (73 ) 0.25 77 Annual increase rate of pension benefits 1.00 283 1.00 (240 ) Annual increase rate of medical expenses 1.00 40 1.00 (33 ) 2016 Discount rate for post-retirement benefits 0.25 (95 ) 0.25 100 Annual increase rate of pension benefits 1.00 325 1.00 (275 ) Annual increase rate of medical expenses 1.00 46 1.00 (38 ) The sensitivity analyses above have been determined based on a method that extrapolates the impact on net post-retirement benefit obligations as a result of reasonable changes in key assumptions occurring at the end of the reporting period. Expected contributions to be made in the future years out of the post-retirement benefit obligations were as follows: 2017 2016 RMB million RMB million Within the next 12 months 168 173 Between 2 and 5 years 679 706 Between 5 and 10 years 851 894 Over 10 years 3,049 3,342 Total expected payments 4,747 5,115 The average duration of the post-retirement benefit obligations at the end of 2017 was 13 years (2016: 13 years and a half). The movements in the post-retirement benefit obligations were as follows: 2017 Pension cost charged to profit or loss Remeasurement (gains)/losses 1 January Service cost Net interest Sub-total Actuarial Actuarial Experience Sub-total included in other comprehensive Benefit Transferred 31 Defined benefit obligations/ benefit liability 3,063 — 98 98 (220 ) — 96 (124 ) (200 ) (167 ) 2,670 2016 Pension cost charged to profit or loss Remeasurement (gains)/losses 1 January Service cost Net interest Sub-total Actuarial Actuarial Experience Sub-total included in other comprehensive income Benefit 31 Defined benefit obligations/ benefit liability 2,750 — 88 88 (80 ) 373 117 410 (185 ) 3,063 |
Deferred Taxation
Deferred Taxation | 12 Months Ended |
Dec. 31, 2017 | |
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Deferred Taxation | 38 DEFERRED TAXATION Deferred tax assets and liabilities are offset when there is a legally enforceable right of offsetting and when the deferred income taxes relate to the same authority. The following amounts, determined after appropriate offsetting, are shown in the consolidated statement of financial position: 2017 2016 RMB million RMB million Deferred tax assets 122 79 Deferred tax liabilities (18 ) (86 ) Net deferred tax assets/(liabilities) 104 (7 ) Movements in the net deferred tax assets/(liabilities) were as follows: 2017 2016 RMB million RMB million At 1 January (7 ) 235 Credited/(charged) to profit or loss (note 14) 162 (146 ) Charged to other comprehensive income (51 ) (96 ) At 31 December 104 (7 ) The deferred tax assets and liabilities (prior to the offsetting of balances within the same tax jurisdiction) were made up of the taxation effects of the following: 2017 2016 RMB million RMB million Deferred tax assets: Impairment provision for obsolete flight equipment spare parts 51 22 Impairment provision for receivables 64 70 Impairment provision for property, plant and equipment 104 11 Derivative financial instruments 82 15 Impairment provision for available-for-sale 25 25 Other payables and accruals 29 88 Aged payables 5 7 360 238 Deferred tax liabilities: Depreciation and amortization (56 ) (85 ) Available-for-sale (162 ) (123 ) Derivative financial instruments (38 ) (37 ) (256 ) (245 ) 104 (7 ) Movements in the net deferred tax assets/(liabilities) of the Group for the year were as follows: (Charged)/ At the (Charged)/ credited to other At the beginning of credited to comprehensive end of the year profit or loss income the year RMB million RMB million RMB million RMB million For the year ended 31 December 2017 Impairment provision for flight equipment spare parts 22 29 — 51 Impairment provision for receivables 70 (6 ) — 64 Impairment provision for property, plant and equipment 11 93 — 104 Derivative financial instruments 15 78 (11 ) 82 Impairment provision for available-for-sale 25 — — 25 Other payables and accruals 88 (59 ) — 29 Aged payables 7 (2 ) — 5 238 133 (11 ) 360 Depreciation and amortization (85 ) 29 — (56 ) Available-for-sale (123 ) — (39 ) (162 ) Derivative financial instruments (37 ) — (1 ) (38 ) (245 ) 29 (40 ) (256 ) Net deferred tax assets/(liabilities) (7 ) 162 (51 ) 104 (Charged)/ At the (Charged)/ credited to other At the beginning of credited to comprehensive end of the year profit or loss income the year RMB million RMB million RMB million RMB million For the year ended 31 December 2016 Impairment provision for flight equipment spare parts 43 (21 ) — 22 Impairment provision for receivables 80 (10 ) — 70 Impairment provision for property, plant and equipment 26 (15 ) — 11 Derivative financial instruments 25 — (10 ) 15 Impairment provision for available-for-sale 25 — — 25 Other payables and accruals 89 (1 ) — 88 Tax losses 133 (133 ) — — Aged payables — 7 — 7 421 (173 ) (10 ) 238 Depreciation and amortization (136 ) 51 — (85 ) Available-for-sale (39 ) (24 ) (60 ) (123 ) Derivative financial instruments (11 ) — (26 ) (37 ) (186 ) 27 (86 ) (245 ) Net deferred tax assets/(liabilities) 235 (146 ) (96 ) (7 ) As at the reporting date, the Group had the following balances in respect of which deferred tax assets have not been recognized: 2017 2016 Deferred Temporary Deferred Temporary taxation differences taxation differences RMB million RMB million RMB million RMB million Tax losses carried forward 42 167 409 1,637 Other deductible temporary differences 6 27 32 128 Total unrecognized deferred tax assets 48 194 441 1,765 In accordance with the PRC tax law, tax losses can be carried forward, for a period of five years, to offset against future taxable income. The Group’s tax losses carried forward will expire between 2018 and 2022. As at 31 December 2017, management carried out an assessment to determine whether future taxable profits will be available to utilize the tax losses and deductible temporary differences. As there are still uncertainties around the Group’s future operating results, such as future fuel prices and market competition, management assessed that for certain subsidiaries there are significant uncertainties that future taxable profits will be available and the deferred tax assets arising from aforementioned tax losses and deductible temporary differences were not recognized. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
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Derivative Financial Instruments | 39 DERIVATIVE FINANCIAL INSTRUMENTS Assets Liabilities 2017 2016 2017 2016 RMB million RMB million RMB million RMB million At 31 December Interest rate swaps (note (a)) 151 137 14 47 Forward foreign exchange contracts (note (b)) — 11 311 11 Total 151 148 325 58 Less: current portion – Forward foreign exchange contracts — (11 ) (324 ) (11 ) Non-current 151 137 1 47 Notes: (a) Interest rate swaps The Group uses interest rate swaps to reduce the risk of changes in market interest rates (note 40). The interest rate swaps entered into by the Group for swapping floating interest rates, usually referenced to LIBOR, into fixed rates are accounted for as cash flow hedges. As at 31 December 2017, the notional amount of the outstanding interest rate swap agreements was approximately USD1,420 million (2016: USD1,636 million). These agreements will expire between 2018 and 2025. Realized and unrealized gains and losses arising from the valuation of these interest rate swaps have been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized losses (recorded in finance costs) (63 ) (122 ) (134 ) Unrealized mark to market gains – cash flow hedges (recognized in other comprehensive income) 47 166 2 – fair value hedges (recognized in (loss)/gain on fair value changes of derivative financial instruments) — 2 6 (16 ) 46 (126 ) (b) Forward foreign exchange contracts The Group uses foreign exchange forward contracts to reduce the risk of changes in currency exchange rates in respect of ticket sales and expenses denominated in foreign currencies (note 3). The Group’s foreign exchange forward contracts for selling RMB and purchasing USD at fixed exchange rates are accounted for as fair value hedges. As at 31 December 2017, the notional amount of the outstanding currency forward contracts was approximately USD829 million (2016: USD440 million), which will expire in 2018. Realized and unrealized gains and losses arising from the valuation of these contracts have been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized (losses)/gains (recorded in finance costs) (177 ) 5 15 Unrealized mark to market losses – cash flow hedges (recognized in other comprehensive income) — (16 ) (11 ) – fair value hedges (recognized in (loss)/gain on fair value changes of derivative financial instruments) (311 ) — — (488 ) (11 ) 4 (c) Cross currency swap The Group uses cross currency swap to reduce the risk of changes in currency exchange rates and market interest rates. The cross currency swap entered into by the Group for swapping US dollars floating interest rates (LIBOR) into Euro floating interest rates (EURIBOR), is accounted for as a cash flow hedge. As at 31 December 2017, there were no outstanding cross currency swap (2016:nil). Realized and unrealized gain and loss arising from the valuation of the contract has been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized gains (recorded in finance costs) — 5 — Unrealized mark to market (losses)/gains – cash flow hedge (recognized in other comprehensive income) — (7 ) 7 — (2 ) 7 |
Financial assets and financial
Financial assets and financial liabilities | 12 Months Ended |
Dec. 31, 2017 | |
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Financial assets and financial liabilities | 40. FINANCIAL ASSETS AND FINANCIAL LIABILITIES (a) Financial instruments by category Derivatives Loans and used for Available receivables hedging for sale Total RMB million RMB million RMB million RMB million 2017 Financial assets Available-for-sale — — 800 800 Derivative financial instruments — 151 — 151 Trade and notes receivables 2,124 — — 2,124 Prepayments and other receivables 3,913 — — 3,913 Restricted bank deposits and short-term bank deposits 51 — — 51 Cash and cash equivalents 4,605 — — 4,605 Other non-current 293 — — 293 Total 10,986 151 800 11,937 Derivatives used for Loans and hedging borrowings Total RMB million RMB million RMB million 2017 Financial liabilities Borrowings — 63,801 63,801 Obligations under finance leases — 66,868 66,868 Derivative financial instruments 325 — 325 Trade and bills payables — 3,184 3,184 Other payables and accruals — 12,964 12,964 Total 325 146,817 147,142 Derivatives Loans and used for Available receivables hedging for sale Total RMB million RMB million RMB million RMB million 2016 Financial assets Available-for-sale — — 645 645 Derivative financial instruments — 148 — 148 Trade and notes receivables 2,660 — — 2,660 Prepayments and other receivables 2,937 — — 2,937 Restricted bank deposits and short-term bank deposits 43 — — 43 Cash and cash equivalents 1,695 — — 1,695 Other non-current 285 — — 285 Total 7,620 148 645 8,413 Derivatives used for Loans and hedging borrowings Total RMB million RMB million RMB million 2016 Financial liabilities Borrowings — 56,732 56,732 Obligations under finance leases — 61,041 61,041 Derivative financial instruments 58 — 58 Trade and bills payables — 3,376 3,376 Other payables and accruals — 12,942 12,942 Total 58 134,091 134,149 (b) Financial risk factors The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and fuel price risk), credit risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group’s financial performance. The Group uses derivative financial instruments to manage risk exposures whenever management considers necessary. Risk management is carried out by a central treasury department (the “Group Treasury”) under policies approved by the Board. The Group Treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The overall risk management strategies, as well as written policies covering specific areas, such as foreign currency risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative Foreign currency risk The Group operates its business in many countries and territories. The Group generates its revenue in different currencies, and its foreign currency liabilities at the end of the period are much higher than its foreign currency assets. The Group’s major liability item (mainly resulting from purchases of aircraft) is mainly priced and settled in foreign currencies, primarily USD. The Group is exposed to currency risks from fluctuations in various foreign currency exchange rates against RMB. The RMB is not freely convertible into other currencies, however, under Mainland China’s Foreign Exchange Control Regulations and Administration of Settlement, Sale and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for other currencies through banks authorized to conduct foreign exchange business. In addition, fluctuations in foreign currency exchange rates will affect the Group’s future costs for purchases of aircraft, flight equipment and aviation fuel, and take-off The Group entered into certain foreign exchange forward contracts to manage part of these foreign currency risks. As at 31 December 2017, the foreign exchange forward contracts at notional value were RMB5,415 million. Details of foreign currency forward contracts are disclosed in note 39(b) to the financial statements. The following tables detail the Group’s exposure to major currency risk at the reporting dates: 2017 USD EUR SGD KRW RMB million RMB million RMB million RMB million Trade receivables 31 3 16 16 Cash and cash equivalents 961 74 28 — Other receivables 1,065 — 1 131 Other non-current 206 — — — Trade and other payables (111 ) — (6 ) — Obligations under finance leases (29,254 ) — (627 ) — Borrowings (7,555 ) (4,921 ) (2,435 ) (1,058 ) 2016 USD EUR JPY KRW RMB million RMB million RMB million RMB million Trade receivables 79 99 2 27 Cash and cash equivalents 702 39 15 — Other receivables 1,636 — 8 125 Other non-current 267 — — — Trade and other payables (123 ) — (2 ) (1 ) Obligations under finance leases (44,913 ) — (326 ) — Borrowings (7,953 ) (4,215 ) — (1,008 ) The following tables indicate the approximate change in the Group’s consolidated statement of profit or loss and other comprehensive income in response to a 1% appreciation or depreciation of the RMB against the following major currencies at the reporting dates: 2017 2016 Effect on other Effect on other Effect on comprehensive Effect on comprehensive profit or loss income profit or loss income RMB million RMB million RMB million RMB million If RMB (weakens)/strengthens against USD (260)/260 41/(41 ) (377)/377 23/(23 ) If RMB (weakens)/strengthens against EUR (36)/36 — (31)/31 — If RMB (weakens)/strengthens against JPY (1)/1 — (2)/2 — If RMB (weakens)/strengthens against KRW (7)/7 — (6)/6 — Interest rate risk The Group’s interest rate risk primarily arises from borrowings and obligations under finance leases. Borrowings issued at variable rates expose the Group to cash flow interest rate risk. Borrowings and finance leases issued at fixed rates expose the Group to fair value interest rate risk. The Group determines the proportion of borrowings and finance leases issued at variable rates and fixed rates based on the market environment. The Group’s finance department has been monitoring the level of interest rates. The increase in the interest rates will increase the interest costs of borrowings and finance leases issued at variable rates, which will further impact the performance of the Group. To hedge against the variability in the cash flows arising from a change in market interest rates, the Group has entered into certain interest rate swaps to swap variable rates into fixed rates. The interest rates and terms of repayment of borrowings made to the Group and interest rate swaps are disclosed in notes 34 and 39(a) to the financial statements. The following tables detail the interest rate profiles of the Group’s interest-bearing financial instruments at the reporting dates: 2017 2016 RMB million RMB million Floating rate instruments Cash and cash equivalents 4,605 1,695 Restricted bank deposits and short-term bank deposits 51 43 Borrowings (13,272 ) (15,419 ) Obligations under finance leases (66,868 ) (61,041 ) Interest rate swap at notional amount 9,280 11,352 2017 2016 RMB million RMB million Fixed rate instruments Borrowings (50,529 ) (41,313 ) The following table indicates the approximate change in the Group’s profit or loss and other comprehensive income, taking the interest rate swap into consideration, if interest rate had been 25 basis points higher with all other variables held constant: 2017 2016 Effect on other Effect on other Effect on comprehensive Effect on comprehensive profit or loss income profit or loss income RMB million RMB million RMB million RMB million Floating rate instruments (142 ) 17 (140 ) 21 Fuel price risk The Group’s results of operations may be significantly affected by fluctuations in fuel prices which is a major expense component for the Group. Aircraft fuel accounted for approximately 25% of the Group’s operating expenses (2016: 21%). As at 31 December 2017, the Group had no open crude oil option contracts. For the year ended 31 December 2017, if fuel price had been 5% higher/lower with all other variables held constant, the Group’s fuel cost would have been RMB1,257 million higher/lower (2016: RMB981million higher/lower). Credit risk The Group’s credit risk is primarily attributable to cash and cash equivalents, deposits and derivative financial instruments with banks and financial institutions, as well as credit exposures to sales agents. A significant portion of the Group’s air tickets is sold by sales agents participating in the Billing and Settlements Plan (“BSP”), a clearing system between airlines and sales agents organized by the International Air Transportation Association. The balance due from BSP agents amounted to approximately RMB717 million as at 31 December 2017 (2016: approximately RMB922 million). The credit risk exposure to BSP agents and the remaining trade and notes receivables are maintained by the Group on an on-going The Group’s cash management policy is to deposit cash and cash equivalents mainly in state-owned banks and other reputable banks and finance institutions. The Group also deposits cash and cash equivalents in an associate financial institution owned by its holding company (note 47(c)(iii)). Management does not expect any loss to arise from non-performance Transactions in relation to derivative financial instruments are only carried out with reputable banks and financial institutions. The Group has policies that limit the amount of credit exposure to any bank and financial institution. Management does not expect any losses from non-performance Liquidity risk The Group’s primary cash requirements have been for day-to-day The table below analyses the Group’s financial liabilities that will be settled into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Less than Over 1 year 1 and 2 years 2 and 5 years 5 years Total RMB million RMB million RMB million RMB million RMB million At 31 December 2017 Borrowings 41,060 7,325 10,161 10,014 68,560 Derivative financial instruments 324 — 1 — 325 Obligations under finance leases 11,651 10,408 27,895 30,196 80,150 Trade, bills and other payables 16,148 — — — 16,148 Total 69,183 17,733 38,057 40,210 165,183 Less than Over 1 year 1 and 2 years 2 and 5 years 5 years Total RMB million RMB million RMB million RMB million RMB million At 31 December 2016 Borrowings 30,262 5,670 14,961 10,813 61,706 Derivative financial instruments 11 33 8 6 58 Obligations under finance leases 8,123 7,526 21,905 33,277 70,831 Trade, bills and other payables 16,318 — — — 16,318 Total 54,714 13,229 36,874 44,096 148,913 (c) Capital risk management The primary objectives of the Group’s capital management are to safeguard the Group’s ability to continue as a going concern and to maintain healthy capital ratios in order to support its business and maximize shareholders’ value. The Group manages its capital structure and makes adjustments to it in light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Group is not subject to any externally imposed capital requirements. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 December 2017 and 31 December 2016. The Group monitors capital on the basis of the debt ratio, which is calculated as total liabilities divided by total assets. The debt ratios at 31 December 2017 and 2016 were as follows: 2017 2016 RMB million RMB million Total liabilities 170,949 159,958 Total assets 229,727 212,324 Debt ratio 0.74 0.75 (d) Fair value estimation of financial assets and liabilities Financial instruments not measured at fair value The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, were as follows: 2017 2016 Carrying Carrying amounts Fair values amounts Fair values RMB million RMB million RMB million RMB million Financial assets Deposits relating to aircraft held under operating leases included in other non-current 217 193 285 258 Financial liabilities Long-term borrowings 24,711 23,812 27,890 28,075 Obligations under finance leases 57,627 57,352 54,594 50,408 Total 82,338 81,164 82,484 78,483 Management has assessed that the fair values of cash and cash equivalents, restricted bank deposits and short-term bank deposits, trade and notes receivables, trade and bills payables, financial assets included in prepayments and other receivables, financial liabilities included in other payables and accruals, short-term bank borrowings and short-term guaranteed bonds approximate to their carrying amounts largely due to the short term maturities of these instruments. The fair values of the deposits relating to aircraft held under operating leases included in other non-current Financial instruments measured at fair value The Group enters into derivative financial instruments, including forward currency contracts and interest rate swaps with various counterparties, principally financial institutions with high credit ratings. Derivative financial instruments are measured using valuation techniques similar to forward pricing and swap models, using present value calculations. The models incorporate various market observable inputs including the foreign exchange spot and forward rates and interest rate curves. As at 31 December 2017, the marked to market value of the derivative asset position is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationship and other financial instruments recognized at fair value. Fair value hierarchy The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments: Assets and liabilities measured at fair value: As at 31 December 2017 Fair value measurement using Quoted prices RMB million Significant RMB million Significant RMB million Total RMB million Assets Derivative financial instruments -Interest rate swaps (note 39(a)) — 151 — 151 Available-for-sale 693 — — 693 Total 693 151 — 844 Liabilities Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 311 — 311 -Interest rate swaps (note 39(a)) — 14 — 14 Total — 325 — 325 As at 31 December 2016 Fair value measurement using Quoted prices Significant Significant Total RMB million RMB million RMB million RMB million Assets Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 11 — 11 -Interest rate swaps (note 39(a)) — 137 — 137 Available-for-sale 538 — — 538 Total 538 148 — 686 Liabilities Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 11 — 11 -Interest rate swaps (note 39(a)) — 47 — 47 Total — 58 — 58 The fair value of financial instruments traded in active markets was based on quoted market prices at the reporting dates. Available-for-sale The fair values of derivative financial instruments are determined by using valuation techniques. These valuation techniques use applicable models and maximize the use of observable market data where it is available and also use quoted market prices or dealer quotes for reference. Assets and liabilities for which fair values are disclosed: As at 31 December 2017 Fair value measurement using Quoted prices Significant inputs (Level 2) Significant (Level 3) Total RMB million RMB million RMB million RMB million Assets Deposits relating to aircraft held under operating leases included in other long-term assets — 193 — 193 Liabilities Long-term borrowings 2,678 21,134 — 23,812 Obligations under finance leases — 57,352 — 57,352 Total 2,678 78,486 — 81,164 As at 31 December 2016 Fair value measurement using Quoted prices Significant Significant (Level 3) Total RMB million RMB million RMB million RMB million Assets Deposits relating to aircraft held under operating leases included in other long-term assets — 258 — 258 Liabilities Long-term borrowings — 28,075 — 28,075 Obligations under finance leases — 50,408 — 50,408 Total — 78,483 — 78,483 |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2017 | |
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Share Capital | 41 SHARE CAPITAL 2017 2016 RMB million RMB million Registered, issued and fully paid of RMB1.00 each A shares listed on The Shanghai Stock Exchange (“A Shares”) - Tradable shares held by Shanghai Licheng Information - Technology Consulting Co., Ltd. with trading moratorium — 466 - Tradable shares held by China National Aviation Fuel - Holding Company with trading moratorium — 466 - Tradable shares held by China COSCO Shipping - Corporation Limited with trading moratorium — 233 - Tradable shares held by Caitong Fund Management - Co., Ltd. with trading moratorium — 162 - Tradable shares without trading moratorium 9,808 8,481 H shares listed on The Stock Exchange of Hong Kong Limited (“H Shares”) 4,659 4,659 - 14,467 14,467 Pursuant to articles 49 and 50 of the Company’s articles of association, both the listed A shares and listed H shares are registered ordinary shares and carry equal rights. A summary of movements in the Company’s share capital is as follows: Number of At 1 January 2017 14,467 Issue of shares — At 31 December 2017 14,467 |
Reserves
Reserves | 12 Months Ended |
Dec. 31, 2017 | |
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Reserves | 42 RESERVES Share Capital Hedging Statutory Other Retained Total RMB million RMB million RMB million RMB million RMB million RMB million RMB million At 1 January 2016 22,327 (778 ) (51 ) 184 (2,579 ) 5,168 24,271 Unrealized gains on cash flow hedges (note 39) — — 107 — — — 107 Fair value movements in available-for-sale — — — — 36 — 36 Fair value changes of available-for-sale — — — — (1 ) — (1 ) Actuarial gains on post-retirement benefit obligations — — — — (403 ) — (403 ) Transfer from retained profits — — — 144 — (144 ) — Issue of shares 7,213 — — — — — 7,213 Profit for the year — — — — — 4,498 4,498 Interim 2016 dividend (note 48) — — — — — (738 ) (738 ) At 31 December 2016 29,540 (778 ) 56 328 (2,947 ) 8,784 34,983 At 1 January 2017 29,540 (778 ) 56 328 (2,947 ) 8,784 34,983 Unrealized gains on cash flow hedges (note 39) — — 35 — — — 35 Fair value movements in available-for-sale — — — — 110 — 110 Fair value changes of available-for-sale — — — — 10 — 10 Actuarial gains on post-retirement benefit obligations — — — — 122 — 122 Transfer from retained profits — — — 212 — (212 ) — Issue of shares — — — — — — — Profit for the year — — — — — 6,342 6,342 Final 2016 dividend — — — — — (709 ) (709 ) At 31 December 2017 29,540 (778 ) 91 540 (2,705 ) 14,205 40,893 Notes: (a) Capital reserve Capital reserve represents the difference between the fair value of the net assets injected and the nominal amount of the Company’s share capital issued in respect of a group restructuring carried out in June 1996 for the purpose of the Company’s listing. (b) Reserve funds According to the PRC Company Law, the Company is required to transfer a portion of the profits to the statutory reserve. The transfer to this reserve must be made before distribution of dividends to shareholders and when there are retained profits at the end of the financial year. |
Disposal of a Subsidiary
Disposal of a Subsidiary | 12 Months Ended |
Dec. 31, 2017 | |
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Disposal of a Subsidiary | 43 DISPOSAL OF A SUBSIDIARY On 29 November 2016, the Company entered into Share Purchase Agreement with Eastern Airlines Industry Investment Company Limited, a wholly-owned subsidiary of CEA Holding, to transfer 100% equity interest in Eastern Logistics, a wholly-owned subsidiary of the Company (“the Transfer”). At of 8 February 2017, the Transfer has been completed. 2017 Net assets disposed of: Intangible assets (note 17) 14 Property, plant and equipment (note 18) 2,019 Prepayments for land use right 305 Other non-current assets 429 Deferred tax assets 4 Flight equipment spare parts 59 Trade receivables 1,097 Prepayments and other receivables 670 Cash and cash equivalents 536 Restricted bank deposits 1 Sales in advance of carriage (124 ) Trade payables (1,915 ) Other payables and accruals (1,090 ) Income tax payable (26 ) Obligations under finance leases (409 ) Borrowings (262 ) Provision for return condition checks for aircraft under operating leases (511 ) Other long-term liabilities (47 ) Post-retirement benefit obligations (158 ) Non-controlling 87 Net assets 679 Gain on disposal of a subsidiary 1,754 Satisfied by: Cash 2,433 An analysis of the net inflow of cash and cash equivalents in respect of the disposal of a subsidiary is as follows: 2017 Cash consideration 2,433 Cash and bank balances disposed of (536 ) Net inflow of cash and cash equivalents in respect of the disposal of a subsidiary 1,897 |
Partly-owned Subsidiaries with
Partly-owned Subsidiaries with Material Non-controlling Interests | 12 Months Ended |
Dec. 31, 2017 | |
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Partly-owned Subsidiaries with Material Non-controlling Interests | 44 PARTLY-OWNED SUBSIDIARIES WITH MATERIAL NON-CONTROLLING Details of the Group’s subsidiaries that have material non-controlling 2017 2016 Percentage of equity interest held by non-controlling CEA Jiangsu 37.44 % 37.44 % CEA Yunnan 9.64 % 9.64 % CEA Wuhan 40.00 % 40.00 % China Cargo — 17.00 % 2017 2016 RMB million RMB million Profit for the year allocated to non-controlling CEA Jiangsu 216 191 CEA Yunnan 67 75 CEA Wuhan 178 173 China Cargo 3 29 Dividends paid to non-controlling 37 56 Dividends paid to non-controlling 22 — Accumulated balances of non-controlling CEA Jiangsu 1,416 1,236 CEA Yunnan 641 574 CEA Wuhan 1,393 1,249 China Cargo — (105 ) The following tables illustrate the summarized financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: CEA Jiangsu CEA Yunnan CEA Wuhan China Cargo RMB million RMB million RMB million RMB million 2017 Revenue 8,257 8,939 4,289 507 Total expenses 7,680 8,244 3,843 462 Profit for the year 577 695 446 45 Total comprehensive income for the year 580 695 461 45 Current assets 1,124 1,230 79 — Non-current 9,313 16,171 7,047 — Current liabilities 2,260 4,471 1,576 — Non-current 4,395 6,282 2,067 — Net cash flows from operating activities 1,491 1,230 846 — Net cash flows used in investing activities (588 ) (274 ) (156 ) — Net cash flows used in financing activities (894 ) (948 ) (682 ) — Effect of foreign exchange rate changes, net — — — — Net increase in cash and cash equivalents 9 8 8 — CEA Jiangsu CEA Yunnan CEA Wuhan China Cargo RMB million RMB million RMB million RMB million 2016 Revenue 7,298 9,054 3,706 3,770 Total expenses 6,787 8,280 3,273 3,598 Profit for the year 511 774 433 172 Total comprehensive income for the year 503 774 438 157 Current assets 1,260 990 79 1,595 Non-current 8,163 16,153 6,108 1,525 Current liabilities 1,971 3,056 1,216 2,834 Non-current 4,149 8,134 1,849 889 Net cash flows from/( used in ) operating activities 1,937 3,178 (196 ) 279 Net cash flows (used in)/from investing activities (675 ) (1,098 ) 428 11 Net cash flows used in financing activities (1,301 ) (2,096 ) (241 ) (11 ) Effect of foreign exchange rate changes, net — — — (1 ) Net (decrease)/increase in cash and cash equivalents (39 ) (16 ) (9 ) 278 |
Notes to the Statement of Conso
Notes to the Statement of Consolidated Cash Flows | 12 Months Ended |
Dec. 31, 2017 | |
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Notes to the Statement of Consolidated Cash Flows | 45 NOTES TO THE STATEMENT OF CONSOLIDATED CASH FLOWS (a) Cash generated from operations 2017 2016 2015 RMB million RMB million RMB million Profit before income tax 8,610 6,497 5,667 Adjustments for: Depreciation of property, plant and equipment and amortization of other non-current 13,769 12,345 10,710 Amortization of intangible assets 143 129 85 Depreciation of investment properties 12 11 4 Amortization of prepayments for land use right 45 63 60 Gains on disposal of property, plant and equipment (13 ) (74 ) (377 ) Gain on disposal of prepayments for land use right (5 ) (3 ) (1 ) Gain on disposal of investment in a subsidiary (1,754 ) — (41 ) Gain on disposal of investment in an associate (12 ) (12 ) — Gain on disposal of available-for-sale (4 ) (95 ) (33 ) Dividend income from available-for-sale (33 ) (28 ) (13 ) Share of results of associates (202 ) (148 ) (126 ) Share of results of joint ventures (49 ) (39 ) (26 ) Net foreign exchange losses (2,378 ) 3,246 5,480 Gain on fair value changes of derivative financial instruments 311 (2 ) (6 ) Impairment charges 491 29 228 Interest income (111 ) (96 ) (66 ) Interest expense 3,184 2,641 2,075 Operating profit before working capital changes 22,004 24,464 23,620 Changes in working capital Flight equipment spare parts (109 ) (202 ) 117 Trade and notes receivables (500 ) 208 985 Prepayments and other receivables (753 ) (839 ) (2,011 ) Restricted bank deposits and short-term bank deposits (8 ) (8 ) — Sales in advance of carriage (569 ) 1,836 777 Trade and bills payables 1,725 (336 ) 1,629 Other payables and accruals 340 1,424 (234 ) Staff housing allowances 62 (57 ) 105 Other long-term liabilities (728 ) (883 ) 1,164 Post-retirement benefit obligations (217 ) 321 (282 ) Provision for return condition checks for aircraft under operating leases (139 ) 167 (381 ) Operating lease deposits — 59 46 Cash generated from operations 21,108 26,154 25,535 (b) Major non-cash 2017 2016 2015 RMB million RMB million RMB million Finance lease obligations incurred for acquisition of aircraft 6,865 8,838 21,887 (c) Changes in liabilities arising from financing activities Bank and Obligations under RMB million RMB million At 1 January 2017 56,732 61,041 Changes from financing cash flow 7,450 (10,587 ) Reclassified as part of the disposal group (262 ) (409 ) Foreign exchange movement (119 ) (2,362 ) New finance leases — 19,185 At 31 December 2017 63,801 66,868 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
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Commitments | 46 COMMITMENTS (a) Capital commitments The Group had the following capital commitments: 2017 2016 RMB million RMB million Contracted for: – Aircraft, engines and flight equipment (note) 87,030 123,019 – Other property, plant and equipment 7,572 9,550 – Investments 208 140 94,810 132,709 Note: Contracted expenditures for the above aircraft, engines and flight equipment, including deposits prior to delivery, subject to future inflation increase built into the contracts, were expected to be paid as follows: 2017 2016 RMB million RMB million Within one year 28,322 28,384 In the second year 27,516 32,306 In the third year 19,273 28,983 In the fourth year 7,829 18,334 Over four years 4,090 15,012 87,030 123,019 The above capital commitments represent the future outflow of cash or other resources. (b) Operating lease commitments As at the reporting date, the Group had commitments to pay future minimum lease rentals under operating leases as follows: 2017 2016 RMB million RMB million Aircraft, engines and flight equipment Within one year 3,048 3,814 In the second year 2,559 3,124 In the third to fifth years, inclusive 7,112 7,616 After the fifth year 7,528 7,605 20,247 22,159 Land and buildings Within one year 332 362 In the second year 164 225 In the third to fifth years, inclusive 156 411 After the fifth year 37 732 689 1,730 20,936 23,889 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
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Related Party Transactions | 47 RELATED PARTY TRANSACTIONS The Group is controlled by CEA Holding, which directly owns 35.06% of the Company’s shares as at 31 December 2017 (2016: 35.06%). In addition, through CES Global Holdings (Hong Kong) Limited and CES Finance Holding Co., Ltd., two wholly-owned subsidiaries of CEA Holding, CEA Holding indirectly owns additional shares of the Company of approximately 18.15% and 3.16% respectively as at 31 December 2017 (2016: 18.15% and 3.16% ). The Company is a state-owned enterprise established in the PRC and is controlled by the PRC government, which also owns a significant portion of the productive assets in the PRC. In accordance with IAS 24 “Related Party Disclosures”, government-related entities and their subsidiaries, directly or indirectly controlled, jointly controlled or significantly influenced by the PRC government are defined as related parties of the Group. On that basis, related parties include CEA Holding and its subsidiaries (other than the Group), other government-related entities and their subsidiaries (“Other State-owned Enterprises”), other entities and corporations over which the Company is able to control or exercise significant influence and key management personnel of the Company as well as their close family members. For the purpose of the related party transaction disclosures, the directors of the Company believe that meaningful information in respect of related party transactions has been adequately disclosed. (a) Nature of related parties that do not control or controlled by the Group: Name of related party Relationship with the Group Eastern Air Finance Company Associate of the Company Eastern Aviation Import & Export Co., Ltd. and its subsidiaries (“Eastern Import & Export”) Associate of the Company Shanghai P&W Associate of the Company Eastern Advertising Associate of the Company Collins Aviation Associate of the Company CAE Melbourne Joint venture of the Company Wheels & Brakes Joint venture of the Company Technologies Aerospace Joint venture of the Company China Kaiya Joint venture of the Company Shanghai Hute Joint venture of the Company CEA Development Co., Limited and its subsidiaries (“CEA Development”) Controlled by the same parent company China Eastern Air Catering Investment Co., Limited and its subsidiaries (“Eastern Air Catering”) Controlled by the same parent company CES International Financial Leasing Corporation Limited and its subsidiaries (“CES Lease Company”) Controlled by the same parent company Shanghai Eastern Airlines Investment Co., Ltd. (“Eastern Investment”) Controlled by the same parent company Shanghai Eastern Airlines Logistics Co., Ltd. and its subsidiaries (“Eastern Logistics”) (note) Controlled by the same parent company Eastern Airlines Industry Investment Company Limited (“Eastern Airlines Industry Investment”) Controlled by the same parent company TravelSky Technology Limited (“TravelSky”) A director and vice president of the Company is a director of Travelsky China Aviation Supplies Holding Company and its A director and vice president of the subsidiaries (“CASC”) Company is a director of CASC Air France-KLM A director and vice president of the Company is a director of AFK Note: Eastern Logistics has become a related party of the Group as it was acquired by Eastern Airlines Industry Investment at of 8 February 2017 and ceased to be a subsidiary of the Company. (b) Related party transactions Income or receipts/ (expense or payments) Pricing policy 2017 2016 Nature of transaction decision Related party and process RMB million RMB million Interest income on deposits Eastern Air Finance Company (iv) 29 23 Interest expense on loans Eastern Air Finance Company (iv) (2 ) (10 ) CEA Holding (iv) (1 ) (1 ) Handling charges for purchase of aircraft, flight, equipment, flight equipment spare parts, other property, plant and flight equipment and repairs for aircraft and engines* Eastern Import & Export (ii) (145 ) (105 ) Repairs and maintenance expense for aircraft and engines Wheels & Brakes (ii) (152 ) (176 ) Technologies Aerospace (ii) (276 ) (252 ) Shanghai P&W (ii) (2,538 ) (2,049 ) Shanghai Hute (ii) (60 ) (84 ) Supply of cabin cleaning services Eastern Advertising (ii) (22 ) (21 ) Advertising expense* Eastern Advertising (ii) (23 ) (36 ) Media royalty fee Eastern Advertising (iii) 15 17 Supply of logistics services Eastern Import & Export (ii) (87 ) (72 ) Supply of system services China Kaiya (ii) (44 ) (79 ) Supply of food and beverages* Eastern Air Catering (i) (1,254 ) (1,054 ) CEA Development (i) (72 ) (51 ) Eastern Import & Export (i) (58 ) (50 ) Cargo handling income Eastern Import & Export (iii) — 15 Automobile maintenance service, aircraft maintenance, providing transportation automobile and other products* CEA Development (ii) (68 ) (86 ) Equipment maintenance fee Collins Aviation (ii) (62 ) (30 ) CEA Development (ii) (53 ) (11 ) Property management and green maintenance expenses* CEA Development (ii) (75 ) (59 ) Supply of hotel accommodation service CEA Development (ii) (104 ) (91 ) Land and building rental* CEA Holding (ii) (54 ) (54 ) Cargo terminal business support services* Eastern Logistics (ii)&(vi) (281 ) — Bellyhold space management* Eastern Logistics (ii)&(vi) (117 ) — Transfer of the pilots Eastern Logistics (ii)&(vi) (7 ) — Freight logistics support services* Eastern Logistics (ii)&(vi) 100 — Bellyhold container management Eastern Logistics (ii)&(vi) (9 ) — Payments on finance leases* CES Lease Company (ii) (1,997 ) (2,721 ) Payments on operating leases* CES Lease Company (ii) (25 ) — Disposal of a subsidiary Eastern Airlines Industry Investment (v) 1,754 — Civil aviation information network services** TravelSky (ii) (551 ) (590 ) Flight training fee CAE Melbourne (ii) (138 ) (68 ) Flight equipment spare parts maintenance** CASC (ii) (98 ) — Payments on aviation transportation cooperation and support services** AFK (ii) (399 ) — Aviation transportation cooperation and support services** AFK (ii) 622 — (i) The Group’s pricing policies on products purchased from related parties are mutually agreed between the contract parties. (ii) The Group’s pricing policies on services provided by related parties are mutually agreed between the contract parties. (iii) The Group’s pricing policies on services provided to related parties are mutually agreed between the contract parties. (iv) The Group’s pricing policies on related party interest rates are mutually agreed between the contract parties by reference to the benchmark interest rates. (v) The Group’s pricing policies on transfer of equity or disposal of investments are mutually agreed based on the valuation prices. (vi) The Group’s related party transactions with Eastern logistics only includes the transactions made after the disposal (note 43). * These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). ** This related party transaction constitutes a continuing connected transaction pursuant to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. During the years ended December 31, 2017 and 2016, the Group’s significant transactions with entities that are controlled, jointly controlled or significantly influenced by the PRC government mainly include most of its bank deposits/borrowings and the corresponding interest income/expense and part of sales and purchases of goods and services. The price and other terms of such transactions are set out in the agreements governing these transactions or as mutually agreed. (c) Balances with related parties (i) Amounts due from related parties 2017 2016 RMB million RMB million Trade receivables Eastern Logistics 194 — Eastern Air Catering 1 — 195 — 2017 2016 RMB million RMB million Prepayments and other receivables Eastern Import & Export 379 536 Technologies Aerospace 10 16 Eastern Air Catering 135 57 Eastern Advertising 29 — CEA development 2 2 CEA Holding 9 — TravelSky 5 — Others — 5 569 616 All the amounts due from related parties are trade in nature, interest-free and payable within normal credit terms. (ii) Amounts due to related parties 2017 2016 RMB million RMB million Trade and bills payables Eastern Import & Export 51 85 Eastern Air Catering 31 37 Technologies Aerospace 105 45 CEA development 25 19 Collins Aviation 1 2 CEA Holding 4 3 CASC 9 18 Shanghai Hute 14 19 Others 1 4 241 232 Other payables and accruals Eastern Import & Export 2 240 Shanghai P&W 578 324 Eastern Air Catering 10 166 CEA Holding 302 303 Shanghai Hute 11 20 Technologies Aerospace 1 29 Wheels & Brakes 16 26 CEA Development 50 72 TravelSky 551 963 Eastern Advertising 2 18 CAE Melbourne 316 368 Eastern Investment 269 — Others 3 5 2,111 2,534 2017 2016 RMB million RMB million Obligations under finance leases CES Lease Company 11,934 5,521 Except for the amounts due to CES Lease Company, which are related to the aircraft under finance leases, all other amounts due to related parties are interest-free and payable within normal credit terms given by trade creditors. (iii) Short-term deposits and borrowings with associates and CEA Holding Average interest rate 2017 2016 2017 2016 RMB million RMB million Short-term deposits (included in cash and cash equivalents) Eastern Air Finance Company 0.35 % 0.35 % 4,053 1,296 Long-term borrowings (included in borrowings) CEA Holding 3.48 % 3.48 % 28 28 (d) Guarantees by the holding company As at December 31, 2017, bonds of the Group guaranteed by CEA Holding amounted to RMB7.8 billion (2016: RMB7.8 billion) (note 34(b)). (e) Key management compensation The compensation paid or payable to key management for employee services mainly comprising of salaries and other short-term employee benefits was analyzed as follows: 2017 2016 RMB million RMB million Directors and supervisors 3 2 Senior management 6 4 9 6 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2017 | |
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Dividends | 48 DIVIDENDS 2017 2016 2015 RMB million RMB million RMB million Interim –Nil (2016: RMB5.1 cents) per ordinary share — 738 — Proposed final –RMB5.1 cents (2016: RMB4.9 cents) per ordinary share 740 709 — 740 1,447 — The proposed final dividend for the year is subject to the approval of the Company’s shareholders at the forthcoming annual general meeting. |
Events After the Reporting Peri
Events After the Reporting Period | 12 Months Ended |
Dec. 31, 2017 | |
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Events After the Reporting Period | 49 EVENTS AFTER THE REPORTING PERIOD On 29 March 2018, the Board considered and approved the 2017 annual profit distribution proposal. It was recommended by the Board that the 2017 annual distribution be approximately RMB740.3 million in cash. Based on the total share capital of 14,467,585,682 shares of the Company, the cash distribution per share would be RMB0.051 (before tax) in cash which will be distributed to holders of A shares of the Company in RMB and to holders of H shares of the Company in HKD. On 2 February 2018, the application for the listing of bonds denominated in Japanese Yen of the Company was approved by Tokyo Stock Exchange. On 19 March 2018, the Company issued three series of JPY-denominated credit enhanced bonds with total principal of JPY50.0 billion and maturities through 2021. The first series of JPY-denominated credit enhanced bonds bears interest at the rate of 0.33% per annum and the other two series bear interest at the rate of 0.64% per annum. |
Summary of Significant Accoun58
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
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Investments in associates and joint ventures | Investments in associates and joint ventures An associate is an entity in which the Group has a long-term interest of generally not less than 20% of the equity voting rights and over which it is in a position to exercise significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee, but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control. The Group’s investments in associates and joint ventures are stated in the consolidated statement of financial position at the Group’s share of net assets under the equity method of accounting, less any impairment losses. Adjustments are made to bring into line any dissimilar accounting policies that may exist. The Group’s share of the post-acquisition results and other comprehensive income of associates and joint ventures is included in the consolidated statement of profit or loss and other comprehensive income. In addition, when there has been a change recognized directly in the equity of the associate or joint venture, the Group recognizes its share of any changes, when applicable, in the consolidated statement of changes in equity. Unrealized gains and losses resulting from transactions between the Group and its associates or joint ventures are eliminated to the extent of the Group’s investments in the associates or joint ventures, except where unrealized losses provide evidence of an impairment of the asset transferred. Goodwill arising from the acquisition of associates or joint ventures is included as part of the Group’s investments in associates or joint ventures. If an investment in an associate becomes an investment in a joint venture or vice versa, the retained interest is not remeasured. Instead, the investment continues to be accounted for under the equity method. In all other cases, upon loss of significant influence over the associate or joint control over the joint venture, the Group measures and recognizes any retained investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence or joint control and the fair value of the retained investment and proceeds from disposal is recognized in profit or loss. When an investment in an associate or a joint venture is classified as held for sale, it is accounted for in accordance with IFRS 5 Non-current |
Segmental reporting | Segmental reporting Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker (“CODM”). The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the office of the General Manager that makes strategic decisions. |
Foreign currencies | Foreign currencies (i) Functional currency Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The financial statements are presented in “RMB”, which is the Company’s functional currency. (ii) Transactions and balances Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in profit or loss within “finance income” or “finance costs”. Non-monetary Non-monetary non-monetary |
Revenue recognition and sales in advance of carriage | Revenue recognition and sales in advance of carriage Revenue comprises the fair value of the consideration received or receivable for the provision of services and the sale of goods in the ordinary course of the Group’s activities. Revenue is stated net of business taxes or value-added taxes, returns, rebates and discounts and after eliminating sales within the Group. Revenue is recognized when it is probable that the economic benefits will flow to the Group and when the revenue can be measured reliably, on the following basis: (i) Traffic revenues Passenger, cargo and mail revenues are recognized as traffic revenues when the transportation services are provided. The value of sold but unused tickets is recognized as sales in advance of carriage (“SIAC”). (ii) Ground service income and tour operation revenues Revenues from the provision of ground services, tour, travel services and other travel related services are recognized when the services are rendered. (iii) Cargo handling income Revenues from the provision of cargo handling services are recognized when the services are rendered. (iv) Commission income Commission income represents amounts earned from other carriers in respect of sales made by the Group on their behalf, and is recognized in profit or loss upon ticket sales. (v) Other revenue Revenues from other operating businesses, including income derived from the provision of freight forwarding, are recognized when the services are rendered. (vi) Frequent flyer programs The Group operates frequent flyer programs that provide travel awards to program members based on accumulated miles. A portion of passengers revenue attributable to the award of frequent flyer benefits is deferred and recognized when the miles have been redeemed or have expired. (vii) Interest income Interest income is recognized on a time-proportion basis using the effective interest rate method. The amount of revenue is not considered to be reliably measurable until all contingencies relating to the sale have been resolved. The Group bases its estimates on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. |
Government grants | Government grants Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. When the grant relates to an expense item, it is recognized as income on a systematic basis over the periods that the costs, which it is intended to compensate are expensed. Where the grant relates to an asset, the fair value is credited to a deferred income account and is released to profit or loss over the expected useful life of the relevant asset by equal annual instalments. |
Maintenance and overhaul costs | Maintenance and overhaul costs In respect of aircraft and engines under operating leases, the Group has obligations to fulfil certain return conditions under the leases. Provision for the estimated cost of these return condition checks is made on a straight-line basis over the term of the leases. In respect of aircraft and engines owned by the Group or held under finance leases, overhaul costs that meet specific recognition criteria are capitalized as a component of property, plant and equipment and are depreciated over the appropriate maintenance cycles. All other repairs and maintenance costs are charged to profit or loss as and when incurred. |
Borrowing costs | Borrowing costs Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, i.e., assets that necessarily take a substantial period of time to get ready for their intended use or sale, are capitalized as part of the cost of those assets. The capitalization of such borrowing costs ceases when the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs capitalized. All other borrowing costs are expensed in the period in which they are incurred. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. |
Income tax | Income tax Income tax comprises current and deferred tax. Income tax relating to items recognized outside profit or loss is recognized outside profit or loss, either in other comprehensive income or directly in equity. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, taking into consideration interpretations and practices prevailing in the countries in which the Group operates. Deferred tax is provided, using the liability method, on all temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred tax liabilities are recognized for all taxable temporary differences, except: • when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and • in respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carryforward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, the carryforward of unused tax credits and unused tax losses can be utilized, except: • when the deferred tax asset relating to the deductible temporary differences arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; and • in respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are only recognized to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. Deferred tax assets and deferred tax liabilities are offset if and only if the Group has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. |
Intangible assets | Intangible assets (i) Goodwill Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as at 31 December. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. (ii) Computer software costs Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. These costs are amortized using the straight-line method over their estimated useful lives of 5 years. Costs associated with developing or maintaining computer software programs are recognized as expenses when incurred. (iii) Others Others relate to the capitalized costs incurred to acquire the use right of certain flight schedules (i.e. timeslots for flights’ taking off/landing) in Guangzhou Baiyun International Airport Co., Ltd. and Shanghai Pudong International Airport, respectively. These costs are amortized using the straight-line method over their useful lives of 3 years. |
Deferred pilot recruitment costs | Deferred pilot recruitment costs Deferred pilot recruitment costs represent the costs borne by the Group in connection with securing a certain minimum period of employment of pilots and are amortized on a straight-line basis over the anticipated beneficial period of 5 years, starting from the date the pilot joins the Group. |
Related parties | Related parties A party is considered to be related to the Group if: (a) the party is a person or a close member of that person’s family and that person (i) has control or joint control over the Group; (ii) has significant influence over the Group; (iii) is a member of the key management personnel of the Group or of a parent of the Group; or (b) the party is an entity where any of the following conditions applies: (i) the entity and the Group are members of the same group; (ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity); (iii) the entity and the Group are joint ventures of the same third party; (iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity; (v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group and the sponsoring employers of the post-employment benefit plan; (vi) the entity is controlled or jointly controlled by a person identified in (a); (vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); and (viii) the entity, or any member of a group of which it is a part, provides key management personnel services to the Group or to the parent of the Group. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment, other than construction in progress, are stated at cost less accumulated depreciation and any impairment losses. When an item of property, plant and equipment is classified as held for sale or when it is part of a disposal group classified as held for sale, it is not depreciated and is accounted for in accordance with IFRS 5, as further explained in the accounting policy for “Non-current When each major aircraft overhaul is performed, its cost is recognized in the carrying amount of the item of property, plant and equipment and is depreciated over the appropriate maintenance cycles. Components related to airframe overhaul cost, are depreciated on a straight-line basis over 5 to 7.5 years. Components related to engine overhaul costs, are depreciated between each overhaul period using the ratio of actual flying hours and estimated flying hours between overhauls. Upon completion of an overhaul, any remaining carrying amount of the cost of the previous overhaul is derecognized and charged to profit or loss. Except for components related to overhaul costs, the depreciation method of which has been described in the preceding paragraph, other depreciation of property, plant and equipment is calculated using the straight-line method to write off their costs to their residual values over their estimated useful lives, as follows: Owned and finance leased aircraft and engines 15 to 20 years Other flight equipment, including rotables 10 years Buildings 8 to 45 years Other property, plant and equipment 3 to 20 years Where parts of an item of property, plant and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately. Residual values, useful lives and the depreciation method are reviewed, and adjusted if appropriate, at least at each financial year end. An item of property, plant and equipment including any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on disposal or retirement recognized in the statement of profit or loss in the year the asset is derecognized is the difference between the net sales proceeds and the carrying amount of the relevant asset. Construction in progress represents a building under construction, which is stated at cost less any impairment losses, and is not depreciated. Cost comprises the direct costs of construction and capitalized borrowing costs on related borrowed funds during the period of construction. Construction in progress is reclassified to the appropriate category of property, plant and equipment when completed and ready for use. |
Investment properties | Investment properties Investment properties are interests in land and buildings (including the leasehold interest under an operating lease for a property which would otherwise meet the definition of an investment property) held to earn rental income and/or for capital appreciation, rather than for use in the production or supply of goods or services or for administrative purposes; or for sale in the ordinary course of business. Such properties are measured initially at cost, including transaction costs. After initial recognition, the Group chooses the cost model to measure all of its investment properties. Depreciation is calculated on the straight-line basis to write off the cost to its residual value over its estimated useful life. The estimated useful lives are as follows: Buildings 30 to 35 years The carrying amounts of investment properties measured using the cost method are reviewed for impairment when events or changes in circumstances indicate that the carrying amounts may not be recoverable. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the year of the retirement or disposal. |
Impairment of non-financial assets | Impairment of non-financial Where an indication of impairment exists, or when annual impairment testing for an asset is required (other than inventories, construction contract assets, financial assets, investment properties and non-current An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax An assessment is made at the end of each reporting period as to whether there is an indication that previously recognized impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognized impairment loss of an asset other than goodwill is reversed only if there has been a change in the estimates used to determine the recoverable amount of that asset, but not to an amount higher than the carrying amount that would have been determined (net of any depreciation/amortization) had no impairment loss been recognized for the asset in prior years. A reversal of such an impairment loss is credited to profit or loss in the period in which it arises, unless the asset is carried at a revalued amount, in which case the reversal of the impairment loss is accounted for in accordance with the relevant accounting policy for that revalued asset. |
Non-current assets and disposal groups held for sale | Non-current Non-current non-controlling Non-current |
Prepayments for land use right | Prepayments for land use right Prepayments for land use right are initially stated at cost and subsequently recognized on the straight-line basis over the agreed terms. |
Advanced payments on acquisition of aircraft | Advanced payments on acquisition of aircraft Advanced payments on acquisition of aircraft represent payments to aircraft manufacturers to secure deliveries of aircraft in future years, including attributable borrowing costs, and are included in non-current |
Flight equipment spare parts | Flight equipment spare parts Flight equipment spare parts are stated at the lower of cost and net realizable value. Cost is determined using the weighted average method. The cost of flight equipment spare parts comprises the purchase price (net of discounts), freight charges, duty and other miscellaneous charges. Net realizable value is the estimated selling price of the flight equipment spare parts in the ordinary course of business, less applicable selling expenses. |
Investments and other financial assets | Investments and other financial assets Initial recognition measurement Financial assets are classified, at initial recognition, as financial assets at fair value through profit or loss, loans and receivables and available-for-sale All regular way purchases and sales of financial assets are recognized on the trade date, that is, the date that the Group commits to purchase or sell the asset. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the period generally established by regulation or convention in the marketplace. S ubsequent measurement The subsequent measurement of financial assets depends on their classification as follows: Financial assets at fair value through profit or loss Financial assets at fair value through profit or loss include financial assets held for trading and financial assets designated upon initial recognition as at fair value through profit or loss. Financial assets are classified as held for trading if they are acquired for the purpose of sale in the near term. Derivatives, including separated embedded derivatives, are also classified as held for trading unless they are designated as effective hedging instruments as defined by IAS 39. Financial assets at fair value through profit or loss are carried in the statement of financial position at fair value with positive net changes in fair value presented as other income and gains and negative net changes in fair value presented as finance costs in profit or loss. These net fair value changes do not include any dividends or interest earned on these financial assets, which are recognized in accordance with the policies set out for “Revenue recognition and sales in advance of carriage” above. Financial assets designated upon initial recognition as at fair value through profit or loss are designated at the date of initial recognition and only if the criteria in IAS 39 are satisfied. Derivatives embedded in host contracts are accounted for as separate derivatives and recorded at fair value if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated as at fair value through profit or loss. These embedded derivatives are measured at fair value with changes in fair value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required or a reclassification of a financial asset out of the fair value through profit or loss category. Loans and receivables Loans and receivables are non-derivative Available-for-sale Available-for-sale non-derivative After initial recognition, available-for-sale available-for-sale When the fair value of unlisted equity investments cannot be reliably measured because (a) the variability in the range of reasonable fair value estimates is significant for that investment or (b) the probabilities of the various estimates within the range cannot be reasonably assessed and used in estimating fair value, such investments are stated at cost less any impairment losses. The Group evaluates whether the ability and intention to sell its available-for-sale For a financial asset reclassified from the available-for-sale |
Derecognition of financial assets | Derecognition of financial assets A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: • the rights to receive cash flows from the asset have expired; or • the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a “pass-through” arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if and to what extent it has retained the risk and rewards of ownership of the asset. When it has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the Group continues to recognize the transferred asset to the extent of the Group’s continuing involvement. In that case, the Group also recognizes an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. |
Impairment of financial assets | Impairment of financial assets The Group assesses at the end of each reporting period whether there is objective evidence that a financial asset or a group of financial assets is impaired. An impairment exists if one or more events that occurred after the initial recognition of the asset have an impact on the estimated future cash flows of the financial asset or the group of financial assets that can be reliably estimated. Evidence of impairment may include indications that a debtor or a group of debtors is experiencing significant financial difficulty, default or delinquency in interest or principal payments, the probability that they will enter bankruptcy or other financial reorganization and observable data indicating that there is a measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults. Financial assets carried at amortized cost For financial assets carried at amortized cost, the Group first assesses whether impairment exists individually for financial assets that are individually significant, or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets that are individually assessed for impairment and for which an impairment loss is, or continues to be, recognized are not included in a collective assessment of impairment. The amount of any impairment loss identified is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not yet been incurred). The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate (i.e., the effective interest rate computed at initial recognition). The carrying amount of the asset is reduced through the use of an allowance account and the loss is recognized in profit or loss. Interest income continues to be accrued on the reduced carrying amount using the rate of interest used to discount the future cash flows for the purpose of measuring the impairment loss. Loans and receivables together with any associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realized or has been transferred to the Group. If, in a subsequent period, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized, the previously recognized impairment loss is increased or reduced by adjusting the allowance account. If a write-off Available-for-sale For available-for-sale If an available-for-sale In the case of equity investments classified as available for sale, objective evidence would include a significant or prolonged decline in the fair value of an investment below its cost. “Significant” is evaluated against the original cost of the investment and “prolonged” against the period in which the fair value has been below its original cost. Where there is evidence of impairment, the cumulative loss – measured as the difference between the acquisition cost and the current fair value, less any impairment loss on that investment previously recognized in profit or loss – is removed from other comprehensive income and recognized in profit or loss. Impairment losses on equity instruments classified as available for sale are not reversed through profit or loss. Increases in their fair value after impairment are recognized directly in other comprehensive income. The determination of what is “significant” or “prolonged” requires judgement. In making this judgement, the Group evaluates, among other factors, the duration or extent to which the fair value of an investment is less than its cost. |
Financial liabilities | Financial liabilities Initial recognition and measurement Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. The Group’s financial liabilities primarily include trade and other payables, derivative financial instruments and borrowings. Subsequent measurement The subsequent measurement of financial liabilities depends on their classification as follows: Loans and borrowings After initial recognition, borrowings are subsequently measured at amortized cost, using the effective interest rate method unless the effect of discounting would be immaterial, in which case they are stated at cost. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the effective interest rate. The effective interest rate amortization is included in finance costs in profit or loss. Financial liabilities at fair value through profit or loss Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are acquired for the purpose of repurchasing in the near term. This category includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by IAS 39. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in profit or loss. The net fair value gain or loss recognized in profit or loss does not include any interest charged on these financial liabilities. Financial liabilities designated upon initial recognition as at fair value through profit or loss are designated at the date of initial recognition and only if the criteria in IAS 39 are satisfied. |
Derecognition of financial liabilities | Derecognition of financial liabilities A financial liability is derecognized when the obligation under the liability is discharged or cancelled, or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as a derecognition of the original liability and a recognition of a new liability, and the difference between the respective carrying amounts is recognized in profit or loss. |
Cash and cash equivalents | Cash and cash equivalents For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise cash on hand and demand deposits, and short term highly liquid investments that are readily convertible into known amounts of cash, are subject to an insignificant risk of changes in value, and have a short maturity of generally within three months when acquired, less bank overdrafts which are repayable on demand and form an integral part of the Group’s cash management. For the purpose of the consolidated statement of financial position, cash and cash equivalents comprise cash on hand and at banks, including assets similar in nature to cash, which are not restricted as to use. |
Provisions | Provisions Provisions are recognized when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; provided that the amount can be reliably estimated. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognized even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax For the contract under which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it, the present obligation under the contract is recognized and measured as a provision. |
Leases | Leases (i) As lessee Finance leases Leases where the Group has acquired substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalized at the lease’s commencement at the lower of the fair value of the assets and the present value of the minimum lease payments. Each lease payment is allocated between the liability and finance charges. The corresponding rental obligations, net of finance charges, are included in the current portion of obligation under finance leases and obligations under finance leases, respectively. The interest element of the finance costs is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. Leased assets are depreciated using a straight-line basis over their expected useful lives to residual values. For sale and leaseback transactions resulting in a finance lease, the sales proceeds are recorded as a borrowing and the relevant assets are continued to be measured at their carry value. Operating leases Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to profit or loss on a straight-line basis over the period of the lease. For sale and leaseback transactions resulting in an operating lease, differences between sales proceeds and net book values are recognized immediately in profit or loss, except to the extent that any profit or loss is compensated for by future lease payments at above or below the market value, then the profit or loss is deferred and amortized over the period for which the asset is expected to be used. (ii) As lessor Assets leased out under operating leases are included in property, plant and equipment in the statement of financial position. They are depreciated over their expected useful lives on a basis consistent with similar property, plant and equipment. Rental income is recognized on a straight-line basis over the lease term. |
Retirement benefits | Retirement benefits (i) Defined contribution plans The Group participates in schemes regarding pension and medical benefits for employees organized by the municipal governments of the relevant provinces. Contributions to these schemes are expensed as incurred. The Group also implemented an additional defined contribution pension benefit scheme (annuity) for voluntary eligible employees. Contributions are made based on a percentage of the employees’ total salaries and are charged to profit or loss as incurred. (ii) Defined benefit plan The Group provides eligible retirees with certain post-retirement benefits including retirement subsidies, transportation allowance as well as other welfare. The defined post-retirement benefits are unfunded. The cost of providing benefits under the post-retirement benefit plan is determined using the projected unit credit actuarial valuation method. Remeasurements arising from the post-retirement benefit plan, comprising actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statement of financial position with a corresponding debit or credit to equity through other comprehensive income in the period in which they occur. Remeasurements are not reclassified to profit or loss in subsequent periods. Past service costs are recognized in profit or loss at the earlier of: • the date of the plan amendment or curtailment; and • the date that the Group recognizes restruturing-related costs Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognizes the following changes in the net defined benefit obligation under “Wages, salaries and benefits” and “Finance costs” in profit or loss: • service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine • net interest expense |
Derivative financial instruments and hedge accounting | Derivative financial instruments and hedge accounting Initial recognition and subsequent measurement The Group uses derivative financial instruments, such as forward currency contracts and interest rate swaps, to hedge its foreign currency risk and interest rate risk, respectively. Such derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered into and are subsequently remeasured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. Any gains or losses arising from changes in fair value of derivatives are taken directly to profit or loss, except for the effective portion of cash flow hedges, which is recognized in other comprehensive income and later reclassified to profit or loss when the hedged item affects profit or loss. For the purpose of hedge accounting, hedges are classified as: • fair value hedges when hedging the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment; or • cash flow hedges when hedging the exposure to variability in cash flows that is either attributable to a particular risk associated with a recognized asset or liability or a highly probable forecast transaction, or a foreign currency risk in an unrecognized firm commitment; or • hedges of a net investment in a foreign operation. At the inception of a hedge relationship, the Group formally designates and documents the hedge relationship to which the Group wishes to apply hedge accounting, the risk management objective and its strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the Group will assess the hedging instrument’s effectiveness of changes in the hedging instrument’s fair value in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing basis to determine that they actually have been highly effective throughout the financial reporting periods for which they were designated. Hedges which meet the strict criteria for hedge accounting are accounted for as follows: Fair value hedges The change in the fair value of a hedging derivative is recognized in profit or loss. The change in the fair value of the hedged item attributable to the risk hedged is recorded as a part of the carrying amount of the hedged item and is also recognized in profit or loss. For fair value hedges relating to items carried at amortized cost, the adjustment to carrying value is amortized through profit or loss over the remaining term of the hedge using the effective interest rate method. Effective interest rate amortization may begin as soon as an adjustment exists and shall begin no later than when the hedged item ceases to be adjusted for changes in its fair value attributable to the risk being hedged. If the hedged item is derecognized, the unamortized fair value is recognized immediately in profit or loss. When an unrecognized firm commitment is designated as a hedged item, the subsequent cumulative change in the fair value of the firm commitment attributable to the hedged risk is recognized as an asset or liability with a corresponding gain or loss recognized in profit or loss. The changes in the fair value of the hedging instrument are also recognized in profit or loss. Cash flow hedges The effective portion of the gain or loss on the hedging instrument is recognized directly in other comprehensive income in the hedging reserve, while any ineffective portion is recognized immediately in profit or loss. Amounts recognized in other comprehensive income are transferred to profit or loss when the hedged transaction affects profit or loss, such as when hedged financial income or financial expense is recognized or when a forecast sale occurs. Where the hedged item is the cost of a non-financial non-financial non-financial non-financial If the hedging instrument expires or is sold, terminated or exercised without replacement or rollover (as part of the hedging strategy), or if its designation as a hedge is revoked, or when the hedge no longer meets the criteria for hedge accounting, the amounts previously recognized in other comprehensive income remain in other comprehensive income until the forecast transaction occurs or the foreign currency firm commitment is met. Current versus non-current The full fair value of a hedging derivative is classified as a non-current |
Dividend distribution | Dividend distribution Dividend distribution to the Company’s shareholders is recognized as a liability in the consolidated financial statements in the period in which the dividends are approved by the Company’s shareholders. Proposed final dividends are disclosed in the notes to the financial statements. |
Fair value measurement | Fair value measurement The Group measures its derivative financial instruments and listed equity investments at fair value at the end of each reporting period. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability, or in the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: Level 1 – based on quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is observable, either directly or indirectly Level 3 – based on valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. |
Business combinations | Business combinations Business combinations are accounted for using the acquisition method. The consideration transferred is measured at the acquisition date fair value which is the sum of the acquisition date fair values of assets transferred by the Group, liabilities assumed by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. For each business combination, the Group elects whether to measure the non-controlling non-controlling When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts of the acquiree. If the business combination is achieved in stages, the previously held equity interest is remeasured at its acquisition date fair value and any resulting gain or loss is recognized in profit or loss. Any contingent consideration to be transferred by the acquirer is recognized at fair value at the acquisition date. Contingent consideration classified as an asset or liability is measured at fair value with changes in fair value recognized in profit or loss. Contingent consideration that is classified as equity is not remeasured and subsequent settlement is accounted for within equity. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognized for non-controlling After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill as at 31 December. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units. Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the carrying amount, an impairment loss is recognized. An impairment loss recognized for goodwill is not reversed in a subsequent period. Where goodwill has been allocated to a cash-generating unit (or group of cash-generating units) and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on the disposal. Goodwill disposed of in these circumstances is measured based on the relative value of the operation disposed of and the portion of the cash-generating unit retained. |
Corporate and Group Informati59
Corporate and Group Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Principal Subsidiaries | Particulars of the Company’s principal subsidiaries at the end of the reporting period are as follows: Name Place and date of Issued ordinary/ registered share Percentage of Principal activities place of business capital Direct Indirect million China Eastern Airlines Jiangsu Co., Ltd. (“CEA Jiangsu”) PRC/Mainland China 7 April 1993 RMB 2,000 62.56 % — Provision of airline services China Eastern Airlines Wuhan Co., Ltd. (“CEA Wuhan”) PRC/Mainland China 16 August 2002 RMB 1,750 60 % — Provision of airline services Shanghai Eastern Flight Training Co., Ltd. (“Shanghai Flight Training”) PRC/Mainland China 18 December 1995 RMB 694 100 % — Provision of flight training services Shanghai Airlines Co., Ltd. (“Shanghai Airlines”) PRC/Mainland China 16 March 2010 RMB 500 100 % — Provision of airline services China Eastern Airlines Technology Co., Ltd. (“Eastern Technology”) PRC/Mainland China 19 November 2014 RMB 4,300 100 % — Provision of airline maintenance services China Eastern Business Jet Co., Ltd. PRC/Mainland China 27 September 2008 RMB 50 100 % — Provision of airlines consultation services China Eastern Airlines Yunnan Co., Ltd. (“CEA Yunnan”) PRC/Mainland China 2 August 2011 RMB 3,662 90.36 % — Provision of airline services Eastern Air Overseas (Hong Kong) Co., Ltd. (“Eastern Air Overseas”) Hong Kong 10 June 2011 HKD 280 100 % — Provision of import and export, investment, leasing and consultation services China United Airlines Co., Ltd. (“China United Airlines”) PRC/Mainland China 21 September 1984 RMB 1,320 100 % — Provision of airline services Eastern Airlines Hotel Co., Ltd. PRC/Mainland China 18 March 1998 RMB 70 100 % — Provision of hotel services primarily to crew Shanghai Airlines Tours International (Group) Co., Ltd. (“Shanghai Airlines Tours”) PRC/Mainland China 29 August 1992 RMB 50 100 % — Tour operations, travel and air ticketing agency and transportation China Eastern Airlines Application Development Center Co., Ltd. (“Application Development Center”) PRC/Mainland China 21 November 2011 RMB 498 100 % — Provision of research and development of technology and products in the field of aviation China Eastern Airlines E-Commerce E-Commerce”) PRC/Mainland China 1 December 2014 RMB 50 100 % — E-commerce |
Summary of Significant Accoun60
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Property, Plant and Equipment Estimated Useful Lives | Except for components related to overhaul costs, the depreciation method of which has been described in the preceding paragraph, other depreciation of property, plant and equipment is calculated using the straight-line method to write off their costs to their residual values over their estimated useful lives, as follows: Owned and finance leased aircraft and engines 15 to 20 years Other flight equipment, including rotables 10 years Buildings 8 to 45 years Other property, plant and equipment 3 to 20 years |
Summary of Investment Property Estimated Useful Lives | Depreciation is calculated on the straight-line basis to write off the cost to its residual value over its estimated useful life. The estimated useful lives are as follows: Buildings 30 to 35 years |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Revenues | The Group is principally engaged in the operation of civil aviation, including the provision of passenger, cargo, mail delivery, tour operations and other extended transportation services. 2017 2016 2015 RMB million RMB million RMB million Traffic revenues 95,187 89,554 85,076 - Passenger 91,564 83,577 78,585 - Cargo and mail 3,623 5,977 6,491 Tour operations income 2,322 3,113 3,491 Ground service income 1,323 2,850 2,546 Cargo handling and processing income 69 794 750 Commission income 112 92 78 Others 3,462 2,501 2,028 102,475 98,904 93,969 |
Other Operating Income and Ga62
Other Operating Income and Gains (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Operating Income and Gains | 2017 2016 2015 RMB million RMB million RMB million Subsidy income (note (a)) 4,941 4,531 4,131 Gain on disposal of property, plant and equipment 69 158 399 Gain on disposal of prepayments for land use right 5 3 1 Gain on disposal of available-for-sale 4 95 33 Dividend income from available-for-sale 33 28 13 Gain on disposal of an associate 12 12 — Compensation from ticket sales agents 271 228 248 Gain on disposal of a subsidiary (note 43) 1,754 — 41 Others (note (b)) 392 414 403 7,481 5,469 5,269 Notes: (a) Subsidy income mainly represents (i) subsidies granted by various local governments based on certain amounts of tax paid; (ii) subsidies granted by various local governments and other parties to encourage the Group to operate certain routes to cities where these governments are located. There are no unfulfilled conditions and other contingencies related to subsidies that were recognized for the years ended 31 December 2017, 2016 and 2015. (b) Others mainly represent compensation from transfer of the pilots. |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Segment Results | The segment results for the year ended December 31, 2017 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 97,698 4,023 — — 101,721 Inter-segment sales — 1,018 (1,018 ) — — Reportable segment revenue 97,698 5,041 (1,018 ) — 101,721 Reportable segment profit before income tax 6,517 363 — 1,740 8,620 Other segment information Depreciation and amortization 13,769 190 — — 13,959 Impairment charges (note 10) 489 2 — — 491 Interest income 2,309 (96 ) (101 ) — 2112 Interest expenses 3,080 205 (101 ) — 3,184 Capital expenditure 32,149 657 — — 32,806 The segment results for the year ended December 31, 2016 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 94,338 4,222 — — 98,560 Inter-segment sales — 782 (782 ) — — Reportable segment revenue 94,338 5,004 (782 ) — 98,560 Reportable segment profit before income tax 5,788 397 — 322 6,507 Other segment information Depreciation and amortization 12,378 160 — — 12,538 Impairment charges (note 10) 22 7 — — 29 Interest income 100 100 (104 ) — 96 Interest expenses 2,553 280 (104 ) — 2,729 Capital expenditure * 34,631 776 — — 35,407 * Capital expenditure consists of additions to property, plant and equipment, investment properties and intangible assets and long-term deferred assets. The segment results for the year ended December 31, 2015 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million Reportable segment revenue from external customers 89,013 4,831 — — 93,844 Inter-segment sales 555 468 (1,023 ) — — Reportable segment revenue 89,568 5,299 (1,023 ) — 93,844 Reportable segment profit before income tax 5,327 238 — 106 5,671 Other segment information Depreciation and amortization 10,727 128 — — 10,855 Impairment charges (note 10) 93 1 — 134 228 Interest income 69 13 (16 ) — 66 Finance expenses 1,935 270 (16 ) — 2,189 Capital expenditure 37,706 591 — — 38,297 The segment assets and liabilities as at December 31, 2017 and December 31, 2016 were as follows: Airline transportation Other operations segments Eliminations Unallocated* Total RMB million RMB million RMB million RMB million RMB million At December 31, 2017 Reportable segment assets 216,591 13,376 (5,514 ) 3,011 227,464 Reportable segment liabilities 165,148 11,301 (5,514 ) 11 170,946 At December 31, 2016 Reportable segment assets 205,024 11,218 (8,896 ) 2,705 210,051 Reportable segment liabilities 159,437 9,373 (8,896 ) 41 159,955 * Unallocated assets primarily represent investments in associates and joint ventures, and available-for-sale available-for-sale |
Summary of Revenues by Geographical Area | 2017 2016 2015 RMB million RMB million RMB million Domestic (the PRC, excluding Hong Kong, Macau and Taiwan) 67,923 63,730 61,222 Regional (Hong Kong, Macau and Taiwan) 3,624 3,516 3,569 International 30,928 31,658 29,178 Total 102,475 98,904 93,969 |
Summary of Reconciliation of Reportable Segment Revenues, Profit, Assets and Liabilities | Reconciliation of reportable segment revenue, profit, assets and liabilities to the consolidated figures as reported in the consolidated financial statements: 2017 2016 2015 Note RMB million RMB million RMB million Revenue Reportable segment revenue 101,721 98,560 93,844 - Reclassification of expired sales in advance of carriage (i) 754 344 125 Consolidated revenue 102,475 98,904 93,969 2017 2016 2015 Note RMB million RMB million RMB million Profit before income tax Reportable segment profit before income tax 8,620 6,507 5,671 - Differences in depreciation charges for aircraft and engines due to different depreciation lives (ii) (10 ) (10 ) (4 ) Consolidated profit before income tax 8,610 6,497 5,667 2017 2016 Notes RMB million RMB million Assets Reportable segment assets 227,464 210,051 - Differences in depreciation charges for aircraft and engines due to different depreciation lives (ii) 21 31 - Difference in intangible asset arising from the acquisition of Shanghai Airlines (iii) 2,242 2,242 Consolidated assets 229,727 212,324 2017 2016 RMB million RMB million Liabilities Reportable segment liabilities 170,946 159,955 - Others 3 3 Consolidated liabilities 170,949 159,958 Notes: (i) The difference represents the different classification of expired sales in advance of carriage under the PRC Accounting Standards and IFRSs. (ii) The difference is attributable to the differences in the useful lives and residual values of aircraft and engines adopted for depreciation purposes in prior years under the PRC Accounting Standards and IFRSs. Despite the depreciation policies of these assets have been unified under IFRSs and the PRC Accounting Standards in recent years, the changes were applied prospectively as changes in accounting estimates which result in the differences in the carrying amounts and related depreciation charges under IFRSs and the PRC Accounting Standards. (iii) The difference represents the different measurement of the fair value of acquisition cost of the shares from Shanghai Airlines between the PRC Accounting standards and IFRSs, which results in the different measurement of goodwill. |
(Loss)_Gain on Fair Value Cha64
(Loss)/Gain on Fair Value Changes of Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of (Loss)/Gain on Fair Value Changes of Derivative Financial Instruments | 2017 2016 2015 RMB million RMB million RMB million Interest rate swap contracts (note 39(a)) — 2 6 Forward foreign exchange contracts (note 39(b)) (311 ) — — (311 ) 2 6 |
Wages, Salaries and Benefits (T
Wages, Salaries and Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Wages, Salaries and Benefits | 2017 2016 2015 RMB million RMB million RMB million Wages, salaries, bonus and allowances 16,474 14,370 12,917 Employee welfare and benefits 133 235 436 Pension (note 37(a)) 1,987 1,769 1,479 Medical insurance (note (a)) 663 606 563 Staff housing fund (note (b)) 886 868 817 Staff housing allowances (note (c)) 150 236 247 Early retirement benefits (note (d)) 27 61 — 20,320 18,145 16,459 Notes: (a) Medical insurance Majority of the Group’s PRC employees participate in the medical insurance schemes organized by municipal governments. (b) Staff housing fund In accordance with the relevant PRC housing regulations, the Group is required to contribute to the state-sponsored housing fund for its employees. At the same time, the employees are required to contribute an amount equal to the Group’s contribution. The employees are entitled to claim the entire sum of the fund contributed under certain specified withdrawal circumstances. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits. (c) Staff housing allowances The Group also provides staff housing allowances in cash to eligible employees. The total entitlement of an eligible employee is principally vested over a period of 20 years. Upon an eligible employee’s resignation or retirement, his or her entitlement would cease and any unpaid entitlement related to past service up to the date of resignation or retirement would be paid. (d) Early retirement benefits The Group implements an early retirement scheme which allows eligible employees to early retire on a voluntary basis. The Group undertakes the obligations to pay the early retirement employees’ basic salaries and certain welfare in the future on a monthly basis according to the early retirement scheme, together with social insurance and housing fund pursuant to the regulation of the local government. The benefits of the early retirement scheme are calculated based on factors including the remaining number of years of service from the date of early retirement to the normal retirement date and the benefits the early retirement employees enjoyed. The present value of the future cash flows expected to be required to settle the obligations is recognized as a provision in “other long-term liabilities”. (e) Emoluments of directors and supervisors Directors’ remuneration for the year, disclosed pursuant to the Listing Rules, section 383(1)(a), (b), (c) and (f) of the Hong Kong Companies Ordinance and Part 2 of the Companies (Disclosure of Information about Benefits of Directors) Regulation, together with the remuneration of supervisors, is as follows: 2017 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun* — — — Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin* — — — Tang Bing* — — — Tian Liuwen* — — — Independent non-executive Li Ruoshan 200 — 200 Shao Ruiqing 200 — 200 Ma Weihua 200 — 200 Cai Hongping 200 — 200 Supervisors Xi Sheng* — — — Feng Jinxiong 584 — 584 Ba Shengji* — — — Hu Jidong 1,549 — 1,549 Jia Shaojun* — — — Total 2,933 — 2,933 2016 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun* — — — Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin* — — — Tang Bing* — — — Tian Liuwen* — — — Independent non-executive Li Ruoshan 160 — 160 Ji Weidong*** — — — Shao Ruiqing 160 — 160 Ma Weihua 160 — 160 Cai Hongping** 100 — 100 Supervisors Yu Faming*&**** — — — Xi Sheng* — — — Xu Haihua***** 288 — 288 Feng Jinxiong 535 — 535 Ba Shengji* — — — Hu Jidong** 426 — 426 Jia Shaojun* & — — — Total 1,829 — 1,829 2015 Salaries and allowances Bonus Total RMB’000 RMB’000 RMB’000 Executive Directors Liu Shaoyong* — — — Ma Xulun 401 — 401 Xu Zhao* — — — Gu Jiadan* — — — Li Yangmin 365 — 365 Tang Bing 358 — 358 Tian Liuwen****** 419 — 419 Independent non-executive Liu Keya******* 72 — 72 Ji Weidong*** — — — Shao Ruiqing****** 60 — 60 Li Ruoshan 120 — 120 Ma Weihua 120 — 120 Supervisors Yu Faming* — — — Xi Sheng* — — — Xu Haihua****** 298 — 298 Feng Jinxiong 610 — 610 Ba Shengji* — — — Total 2,823 — 2,823 * These directors and supervisors of the Company received emoluments from CEA Holding, the parent company, part of which were in respect of their services to the Company and its subsidiaries. No apportionment has been made as it is impracticable to apportion this amount between their services to the Group and their services to CEA Holding. Mr. Xu Zhao resigned on 6 February 2018. ** These directors and supervisors of the Company were newly appointed during the year ended December 31, 2016. *** Mr. Ji Weidong has filed his resignation during the year ended December 31, 2015 and has fulfilled his responsibility until new director being appointed by the board in June 2016. **** Mr. Yu Faming resigned during the year ended December 31, 2016. ***** Mr. Xu Haihua resigned during the year ended December 31, 2016. ****** These directors and supervisors of the Company were newly appointed during the year ended December 31, 2015. ******* Mr. Liu Keya retired during the year ended December 31, 2015. |
Summary of Five Highest Paid Individuals | Five highest paid individuals None of the Company’s directors and supervisors was among the five highest paid individuals in the Group for the year ended December 31, 2017 (2016 and 2015: Nil). The emoluments payable to the five highest paid individuals were as follows: 2017 2016 2015 RMB million RMB million RMB million Wages, salaries, bonus and allowances 8,702 9,319 8,104 The number of five highest paid individuals whose emoluments fell within the following bands is as follows: Number of individuals 2017 2016 2015 HK$1,500,001 to HK$2,000,000 — — 5 HK$2,000,001 to HK$2,500,000 5 5 — 5 5 5 |
Impairment Charges (Tables)
Impairment Charges (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Impairment Charges | 2017 2016 2015 RMB million RMB million RMB million Write-down of flight equipment spare parts to net realisable value (note 26) 112 10 88 Impairment charge on property, plant and equipment (note 18) 379 29 48 Impairment charge on assets of a disposal group classified as held for sale (note 16) 3 — 33 Impairment charge on available-for-sale — — 100 Accrual/(reversal) of impairment charge on trade receivables (note 27) (3 ) (1 ) 12 Reversal of impairment charge on other receivables — (9 ) (53 ) 491 29 228 |
Operating Profit (Tables)
Operating Profit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Operating Profit | Operating profit is stated after charging the following items: 2017 2016 2015 RMB million RMB million RMB million Amortization of intangible assets (note 17) 142 129 85 Depreciation of property, plant and equipment (note 18) – owned 7,065 6,388 5,350 – leased (finance leases) 6,302 5,563 4,972 Depreciation of investment properties (note 19) 12 11 4 Amortization of long-term deferred assets included in other non-current 402 394 388 Amortization of prepayments for land use right 45 63 60 Consumption of flight equipment spare parts 1,131 1,198 974 Auditors’ remuneration 19 18 17 Subsidy income (note 6) (4,941 ) (4,531 ) (4,131 ) Gain on disposal of a subsidiary (note 6) (1,754 ) — (41 ) |
Finance Income (Tables)
Finance Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Finance Income | 2017 2016 2015 RMB million RMB million RMB million Interest income 111 96 66 Foreign exchange difference, net (note 13(b)) 2,001 — — 2,112 96 66 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Finance Costs | 2017 2016 2015 RMB million RMB million RMB million Interest on bank borrowings 1,590 1,529 1,613 Interest relating to obligations under finance leases 1,845 1,349 867 Interest relating to post-retirement benefit obligations (note37) 98 88 114 Interest on bonds and debentures 381 359 483 Interest relating to interest rate swap contracts (note 39(a)) 63 122 128 Less: amount capitalized into advanced payments on acquisition of aircraft (note (a)) (note21) (793 ) (749 ) (1,014 ) amounts capitalized into construction in progress (note (a)) — — (2 ) 3,184 2,698 2,189 Foreign exchange difference, net (note (b)) — 3,574 4,987 3,184 6,272 7,176 Notes: (a) The average interest rate used for interest capitalization was 3.40% per annum for the year ended December 31, 2017 (2016: 3.25%, 2015: 3.09%). (b) The exchange income and losses were primarily related to the translation of the Group’s foreign currency denominated borrowings and obligations under finance leases. |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Income Tax Charged to Profit or Loss | Income tax charged to profit or loss was as follows: 2017 2016 2015 RMB million RMB million RMB million Income tax 1,962 1,396 737 Deferred taxation (note 38) (162 ) 146 (113 ) 1,800 1,542 624 |
Summary of the Reconciliation of Statutory Tax Rates to Effective Tax Rate | A reconciliation of the tax expense applicable to profit before tax at the statutory rates for the countries in which the Company and the majority of its subsidiaries are domiciled to the tax expense at the effective tax rates, are as follows: 2017 2016 2015 RMB million RMB million RMB million Profit before income tax 8,610 6,497 5,667 Tax calculated at the tax rate of 25% (2016: 25%, 2015: 25%) 2,152 1,624 1,417 Lower tax rates enacted by local authority (87 ) (102 ) (156 ) Share of results of associates and joint ventures (63 ) (37 ) (38 ) Income not subject to tax (13 ) (10 ) — Expenses not deductible for tax 38 117 104 Utilization of previously unrecognized tax losses (253 ) (51 ) (1 ) Unrecognized tax losses for the year 48 13 20 Utilization of deductible temporary differences (13 ) (10 ) (686 ) Unrecognized deductible temporary differences 2 6 (36 ) Research and development costs’ super deduction (11 ) (8 ) — Tax charge 1,800 1,542 624 Effective tax rate 20.91 % 23.73 % 11.01 % |
Held for sale assets and liab71
Held for sale assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Major Classes of Assets and Liabilities Classified as Held for Sale | The major classes of assets and liabilities (after eliminating of inter-company payable of RMB6 million) of Shanghai Airlines Hotel classified as held for sale as at 31 December 2017 are as follows: 2017 RMB million Assets Property, plant and equipment 2 Other non-current 1 Trade and notes receivables 2 Cash and cash equivalents 11 Inventory 1 17 Provision for impairment of assets classified as held for sale (3 ) Assets classified as held for sale 14 Liabilities Trade and bills payables (2 ) Other payables and accruals (6 ) Liabilities directly associated with the assets classified as held for sale (8 ) Net assets directly associated with the disposal group 6 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Intangible Assets | Goodwill Computer Others (note(a)) software (note(b)) Total RMB million RMB million RMB million RMB million 31 December 2017 Cost at 1 January 2017, net of accumulated amortization 11,270 288 66 11,624 Additions — 126 — 126 Transfer from construction in process — 3 — 3 Amortization provided during the year — (109 ) (33 ) (142 ) Disposal of a subsidiary (note 43) — (14 ) — (14 ) Disposals — (1 ) — (1 ) At 31 December 2017 11,270 293 33 11,596 At 31 December 2017: Cost 11,270 904 98 12,272 Accumulated amortization — (611 ) (65 ) (676 ) Net carrying amount 11,270 293 33 11,596 31 December 2016 Cost at 1 January 2016, net of accumulated amortization 11,270 252 — 11,522 Additions — 124 98 222 Transfer from construction in process — 9 — 9 Amortization provided during the year — (97 ) (32 ) (129 ) Disposals — — — — At 31 December 2016 11,270 288 66 11,624 At 31 December 2016: Cost 11,270 812 98 12,180 Accumulated amortization — (524 ) (32 ) (556 ) Net carrying amount 11,270 288 66 11,624 Notes: (a) The balance represents goodwill arising from the acquisition of Shanghai Airlines. The value of the Goodwill is attributable to strengthening the competitiveness of the Group’s airline transportation operations, attaining synergy through integration of the resources and accelerating the development of international air transportation in Shanghai. For the purpose of impairment assessment, goodwill was allocated to the cash-generating unit (“CGU”) that the Group operates and benefits from the acquisition. The recoverable amount of the CGU has been determined based on a value-in-use value-in-use (b) The balance represents the costs incurred to acquire the use right of certain flight schedules (i.e. timeslots for flights’ taking off/landing). |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Property, Plant and Equipment | Aircraft, engines and flight equipment Other Held under property, plant Construction Owned finance leases Buildings and equipment in progress Total RMB million RMB million RMB million RMB million RMB million RMB million 31 December 2017 At 31 December 2016 and at 1 January 2017: Cost 99,653 97,064 8,324 8,201 2,398 215,640 Accumulated depreciation and impairment (34,914 ) (19,890 ) (2,450 ) (5,206 ) — (62,460 ) Net carrying amount 64,739 77,174 5,874 2,995 2,398 153,180 At 1 January 2017, net of accumulated depreciation and impairment 64,739 77,174 5,874 2,995 2,398 153,180 Additions 3,659 8,277 276 808 2,688 15,708 Disposals (656 ) (264 ) (1 ) (103 ) — (1,024 ) Transfer from construction in progress — — 1,019 18 (1,037 ) — Transfer from advanced payments on acquisition of aircraft (note 21) 1,701 13,378 — — — 15,079 Transfer from investment properties (note 19) — — 9 — — 9 Transfer to investment properties (note 19) — — (2 ) — — (2 ) Assets included in held for sale — — — (2 ) — (2 ) Transfer to other non-current — — — — (327 ) (327 ) Depreciation provided during the year (6,154 ) (6,302 ) (298 ) (613 ) — (13,367 ) Disposal of a subsidiary (note 43) (199 ) (1,220 ) (375 ) (208 ) (17 ) (2,019 ) Impairment (379 ) — — — — (379 ) Transfers 6,283 (6,283 ) (24 ) 24 — — At 31 December 2017, net of accumulated depreciation and impairment 68,994 84,760 6,478 2,919 3,705 166,856 At 31 December 2017: Cost 111,297 105,801 8,809 7,934 3,705 237,546 Accumulated depreciation and impairment (42,303 ) (21,041 ) (2,331 ) (5,015 ) — (70,690 ) Net carrying amount 68,994 84,760 6,478 2,919 3,705 166,856 Aircraft, engines and flight equipment Other Owned Held under property, plant Construction finance leases Buildings and equipment in progress Total RMB million RMB million RMB million RMB million RMB million RMB million 31 December 2016 At 31 December 2015 and at 1 January 2016: Cost 80,402 89,146 7,993 7,486 1,771 186,798 Accumulated depreciation and impairment (28,557 ) (18,029 ) (2,266 ) (4,704 ) — (53,556 ) Net carrying amount 51,845 71,117 5,727 2,782 1,771 133,242 At 1 January 2016, net of accumulated depreciation and impairment 51,845 71,117 5,727 2,782 1,771 133,242 Additions 9,411 4,485 5 651 1,477 16,029 Disposals (324 ) (58 ) (21 ) (212 ) — (615 ) Transfer from construction in progress — — 474 328 (802 ) — Transfer from advanced payments on acquisition of aircraft (note 21) 12,236 4,354 — — — 16,590 Transfer to investment properties (note 19) — — (38 ) — — (38 ) Transfer to other non-current — — — — (48 ) (48 ) Depreciation provided during the year (5,561 ) (5,563 ) (273 ) (554 ) — (11,951 ) Impairment (29 ) — — — — (29 ) Transfers (2,839 ) 2,839 — — — — At 31 December 2016, net of accumulated depreciation and impairment 64,739 77,174 5,874 2,995 2,398 153,180 At 31 December 2016: Cost 99,653 97,064 8,324 8,201 2,398 215,640 Accumulated depreciation and impairment (34,914 ) (19,890 ) (2,450 ) (5,206 ) — (62,460 ) Net carrying amount 64,739 77,174 5,874 2,995 2,398 153,180 |
Investment Properties (Tables)
Investment Properties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Investment Properties | 2017 2016 RMB million RMB million Cost At 1 January 402 344 Transfer from property, plant and equipment (note 18) 4 58 Transfer to property, plant and equipment (note 18) (14 ) — At 31 December 392 402 Accumulated depreciation At 1 January 81 50 Transfer from property, plant and equipment (note 18) 2 20 Transfer to property, plant and equipment (note 18) (5 ) — Charge for the year (note 11) 12 11 At 31 December 90 81 Net book amount At 31 December 302 321 |
Summary of Fair Value Measurement Hierarchy of Investment Properties | The following table illustrates the fair value measurement hierarchy of the Group’s investment properties: Buildings Fair value measurement using Quoted prices Significant Significant in active observable unobservable markets inputs inputs (Level 1) (Level 2) (Level 3) Total RMB million RMB million RMB million RMB million Not measured at fair value but fair value is disclosed: As at 31 December 2017 — 198 430 628 As at 31 December 2016 — 183 421 604 |
Prepayments for Land Use Right
Prepayments for Land Use Right (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Prepayments for Land Use Right | 2017 2016 RMB million RMB million Carrying amount at 1 January 2,064 2,094 Recognized during the year (347 ) (30 ) Carrying amount at 31 December 1,717 2,064 |
Advanced Payments on Acquisit76
Advanced Payments on Acquisition of Aircraft (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Advanced Payments on Acquisition of Aircraft | 2017 2016 RMB million RMB million At 1 January 23,357 21,207 Additions 15,681 17,991 Interest capitalized (note 13) 793 749 Transfer to property, plant and equipment (note 18) (15,079 ) (16,590 ) At 31 December 24,752 23,357 |
Investments in Associates (Tabl
Investments in Associates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Investments in Associates | 2017 2016 RMB million RMB million Unlisted investments, cost 1,116 1,069 Share of net assets 538 467 1,654 1,536 |
Summary of Movements in Investments in Associates | The movements in investments in associates were as follows: 2017 2016 RMB million RMB million At 1 January 1,536 1,543 Additions 47 — Share of results of associates 202 148 Share of revaluation on available-for-sale 10 (1 ) Dividend received during the year (141 ) (154 ) At 31 December 1,654 1,536 |
Summary of Principal Associates | Particulars of the principal associates, which are limited liability companies, are as follows: Company name Place of establishment and Registered capital Attributable Principal activities 2017 2016 2017 2016 Million Million Eastern Air Group Finance Co., Ltd. (“Eastern Air Finance Company”) PRC/Mainland China 6 December 1995 RMB 2,000 RMB 2,000 25 % 25 % Provision of financial services to group companies of CEA Holding China Eastern Air Catering Investment Co., Ltd. PRC/Mainland China 17 November 2003 RMB 350 RMB 350 45 % 45 % Provision of air catering services Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. (“Shanghai P&W”) (note) PRC/Mainland China 28 March 2008 USD 40 USD 40 51 % 51 % Provision of aircraft, engine and other related components maintenance services New Shanghai International Tower Co., Ltd. PRC/Mainland China 17 November 1992 RMB 167 RMB 167 20 % 20 % Property development provision and management services Eastern Aviation Import & Export Co., Ltd. (“Eastern Import & Export”) PRC/Mainland China 9 June 1993 RMB 80 RMB 80 45 % 45 % Provision of aviation equipment and spare parts purchase Eastern Aviation Advertising Service Co., Ltd. (“Eastern Advertising”) PRC/Mainland China 4 March 1986 RMB 200 RMB 200 45 % 45 % Provision of aviation advertising agency services Shanghai Collins Aviation Maintenance Service Co., Ltd. (“Collins Aviation”) PRC/Mainland China 27 September 2002 USD 7 USD 7 35 % 35 % Provision of airline electronic product maintenance services |
Summary of Aggregate Financial Information of Associates | The following table illustrates the aggregate financial information of the Group’s associates that were not individually material: 2017 2016 RMB million RMB million Share of the associates’ profit for the year 202 148 Share of the associates’ other comprehensive income 10 (1 ) Share of the associates’ total comprehensive income 212 147 Aggregate carrying amount of the Group’s interests in the associates 1,654 1,536 |
Investments in Joint Ventures (
Investments in Joint Ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Investments in Joint Ventures | 2017 2016 RMB million RMB million Unlisted investments, cost 369 352 Share of net assets 188 172 557 524 |
Summary of Movements in Investments in Joint Ventures | The movements in investments in joint ventures were as follows: 2017 2016 RMB million RMB million At 1 January 524 518 Additions 17 — Share of results 49 39 Dividend received during the year (33 ) (33 ) At 31 December 557 524 |
Summary of Principal Joint Ventures | Particulars of the principal joint ventures, which are limited liability companies, are as follows: Company name Place of establishment and Paid-up Attributable Principal activities 2017 2016 2017 2016 Million Million Shanghai Technologies Aerospace Co., Ltd. (“Technologies Aerospace”) (note) PRC/Mainland China 28 September 2004 USD 73 USD 73 51 % 51 % Provision of repair and maintenance services Shanghai Eastern Union Aviation Wheels & Brakes Maintenance Services Overhaul Engineering Co., Ltd. (“Wheels & Brakes”) PRC/Mainland China 28 December 1995 USD 2 USD 2 40 % 40 % Provision of spare parts repair and maintenance services Eastern China Kaiya System Integration Co., Ltd. (“China Kaiya”) PRC/Mainland China 21 May 1999 RMB 10 RMB 10 41 % 41 % Provision of computer systems development and maintenance services CAE Melbourne Flight Training Pty Ltd. (“CAE Melbourne”) Australia 9 March 2007 AUD 11 AUD 11 50 % 50 % Provision of flight training services Shanghai Hute Aviation Technology Co., Ltd. (“Shanghai Hute”) PRC/Mainland China 9 April 2003 RMB 30 RMB 30 50 % 50 % Provision of equipment maintenance services Xi’an CEA SAFRAN Landing Systems Services Co., Ltd. (“XIESA”) PRC/Mainland China 12 July 2017 USD 40 — 50 % — Provision of aircraft, engine and other related components maintenance services |
Summary of Aggregate Financial Information of Joint Ventures | The following table illustrates the aggregate financial information of the Group’s joint ventures that were not individually material: 2017 2016 RMB million RMB million Share of the joint ventures’ profit for the year 49 39 Share of the joint ventures’ total comprehensive income 49 39 Aggregate carrying amount of the Group’s interests in the joint ventures 557 524 |
Available-for-sale Investments
Available-for-sale Investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Available-for-sale Investments | 2017 2016 RMB million RMB million Listed equity investments, at fair value 693 538 Unlisted equity investments, at cost 107 107 800 645 |
Other Non-current Assets (Table
Other Non-current Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Non-current Assets | 2017 2016 RMB million RMB million Deposits relating to aircraft held under operating leases 217 285 Deferred pilot recruitment costs 1,288 1,182 Rebate receivables on aircraft acquisitions 65 83 Rental prepayment — 426 Prepayment for acquisition of property, plant and equipment 681 299 Other long term assets 676 694 2,927 2,969 |
Flight Equipment Spare Parts (T
Flight Equipment Spare Parts (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Flight Equipment Spare Parts | 2017 2016 RMB million RMB million Flight equipment spare parts 2,716 2,713 Less: provision for spare parts (531 ) (465 ) 2,185 2,248 |
Summary of Movements in Provision for Impairment of Flight Equipment Spare Parts | Movements in the Group’s provision for impairment of flight equipment spare parts were as follows: 2017 2016 RMB million RMB million At 1 January 465 541 Accrual (note 10) 112 10 Amount written off in relation to disposal of spare parts (1 ) (86 ) Disposal of a subsidiary (45 ) — At 31 December 531 465 |
Trade and Notes Receivables (Ta
Trade and Notes Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Trade and Notes Receivables | The credit terms given to trade customers are determined on an individual basis. 2017 2016 RMB million RMB million Trade receivables 2,124 2,630 Notes receivable — 30 At 31 December 2,124 2,660 |
Summary of Ageing Analysis of Trade and Notes Receivables | An ageing analysis of the trade and notes receivables as at the end of the reporting period, based on the invoice/billing date, was as follows: 2017 2016 RMB million RMB million Within 90 days 1,912 2,324 91 to 180 days 38 167 181 to 365 days 100 102 Over 365 days 162 182 2,212 2,775 Provision for impairment of trade receivables (88 ) (115 ) 2,124 2,660 |
Trade and notes receivables [member] | |
Summary of Ageing Analysis of Trade and Notes Receivables Past Due But Not Impaired | The ageing analysis of these trade and notes receivables was as follows: 2017 2016 RMB million RMB million Past due: Within 90 days 38 167 91 to 180 days 93 30 181 to 365 days — 70 131 267 |
Summary of Provision for Impairment of Trade and Notes Receivables | Movements in the Group’s provision for impairment of trade and notes receivables were as follows: 2017 2016 RMB million RMB million At 1 January 115 216 Impairment losses recognized (note 10) 6 8 Amount written off during the year as uncollectible (13 ) (100 ) Impairment losses reversed (note 10) (9 ) (9 ) Disposal of subsidiary (5 ) — Provision included in held for sale (6 ) — At 31 December 88 115 |
Prepayments and Other Receiva83
Prepayments and Other Receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Prepayments and Other Receivables | 2017 2016 RMB million RMB million Value added tax recoverable 3,662 1,746 Value added tax refundable 1,387 615 Subsidy receivable 1,450 762 Prepaid corporate income tax 139 283 Advance to suppliers 218 2,327 Prepaid aircraft operating lease rentals 319 382 Dividend receivable 183 — Rebate receivables on aircraft acquisitions 944 1,489 Rental deposits 200 233 Amounts due from related parties (note 47(c)(i)) 569 616 Deposits relating to aircraft held under operating leases 76 140 Others 365 838 9,512 9,431 Provision for impairment of other receivables (198 ) (200 ) 9,314 9,231 |
Restricted Bank Deposits and 84
Restricted Bank Deposits and Short-term Bank Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Restricted Bank Deposits and Short-term Bank Deposits | 2017 2016 RMB million RMB million Bank deposits with original maturity over a year — 3 Restricted bank deposits 51 40 51 43 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Cash and Cash Equivalents | 2017 2016 RMB million RMB million Cash 2 3 Bank balances 4,603 1,692 4,605 1,695 |
Trade and Bills Payables (Table
Trade and Bills Payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Analysis of Trade and Bills Payables | An aged analysis of the trade and bills payables as at the end of the reporting period was as follows: 2017 2016 RMB million RMB million Within 90 days 2,791 2,994 91 to 180 days 59 57 181 to 365 days 161 83 1 to 2 years 71 77 Over 2 years 102 165 3,184 3,376 |
Other Payables and Accruals (Ta
Other Payables and Accruals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Payables and Accruals | 2017 2016 RMB million RMB million Salaries, wages and benefits 2,711 3,662 Take-off 2,707 2,323 Fuel cost 1,369 1,774 Expenses related to aircraft overhaul conducted 1,760 1,253 Advance from customers 1,342 966 Duties and levies payable 1,483 1,507 Other accrued operating expenses 1,848 1,561 Deposits received from ticket sales agents 549 764 Current portion of other long-term liabilities (note 36) 1,038 635 Staff housing allowance 323 363 Amounts due to related parties (note 47(c)(ii)) 2,111 2,534 Current portion of post-retirement benefit obligations (note 37(b)) 168 173 Others 2,455 2,735 19,864 20,250 |
Obligations Under Finance Lea88
Obligations Under Finance Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Future Minimum Lease Payments (Including Interest), and Present Value of Minimum Lease Payments Under Finance Leases | The future minimum lease payments (including interest), and the present values of the minimum lease payments under finance leases were as follows: Present values Present values Minimum lease of minimum Minimum lease of minimum payments lease payments payments lease payments 2017 2017 2016 2016 RMB million RMB million RMB million RMB million Within one year 11,651 8,123 In the second year 10,408 7,526 In the third to fifth years, inclusive 27,895 21,905 After the fifth year 30,196 33,277 Total 80,105 66,868 70,831 61,041 Less: amounts repayable within one year (11,651 ) (9,241 ) (8,123 ) (6,447 ) Long-term portion 68,454 57,627 62,708 54,594 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Borrowings | 2017 2016 RMB million RMB million Non-current Long-term bank borrowings – secured (note (a)) 4,816 7,169 – unsecured 108 3,435 Guaranteed bonds (note (b)) 10,956 8,476 Unsecured bonds (note (b)) 8,831 8,810 24,711 27,890 Current Current portion of long-term bank borrowings – secured (note (a)) 1,028 1,724 – unsecured 3,103 135 Short-term bank borrowings – unsecured 24,959 9,983 Short-term debentures (note (c)) 10,000 17,000 39,090 28,842 Total borrowings 63,801 56,732 The borrowings are repayable as follows: Within one year 39,090 28,842 In the second year 6,527 4,833 In the third to fifth years, inclusive 8,797 13,281 After the fifth year 9,387 9,776 Total borrowings 63,801 56,732 Notes: (a) As at 31 December 2017, the secured bank borrowings of the Group were pledged by the related aircraft and buildings with an aggregate carrying amount of RMB11,207 million (2016: RMB17,559 million) (note 18). (b) On 18 March 2013, the Company issued ten-year On 15 June 2016, the Company issued three-year medium-term bonds with a principal amount of RMB3 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.15% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 15 June 2019. On 14 July 2016, the Company issued five-year medium-term bonds with a principal amount of RMB4 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.39% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 14 July 2021. On 20 July 2016, the Company issued three-year medium-term bonds with a principal amount of RMB1.5 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 3.00% per annum, which are payable annually. The principal of the bonds will mature and become repayable on 20 July 2019. On 28 September 2016, the Company issued three-year guaranteed notes with a principal amount of KRW120 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.05% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019. Korean Development Bank has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds. On 28 September 2016, the Company issued three-year notes with a principal amount of KRW55 billion, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.85% per annum, which are payable semi-annually. The principal of the bonds will mature and become repayable on 28 September 2019. On 24 October 2016, the Company issued ten-year On 16 November 2017, Eastern Air Overseas issued three-year corporate bonds with a total principal amount of SGD 500 million, at an issue price equal to the face value of the bonds. The bonds bear interest at the rate of 2.80% per annum. The bonds are payable semi-annually. The principal of the bonds will mature and become repayable on 16 November 2020. The Company has unconditionally and irrevocably guaranteed the due payment and performance of the above bonds (note 47(d)). (c) On 21 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 270 days. The debentures bear interest at the rate of 4.16% per annum. On 22 August 2017, the Company issued short-term debentures with a principal of RMB3 billion and maturity of 150 days. The debentures bear interest at the rate of 4.25% per annum. On 12 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.25% per annum. On 26 September 2017, the Company issued short-term debentures with a principal of RMB2 billion and maturity of 179 days. The debentures bear interest at the rate of 4.20% per annum. |
Long-term borrowings [member] | |
Summary of Borrowings | The terms of the long-term borrowings and bonds were summarized as follows: Interest rate and final maturities 2017 2016 RMB million RMB million Long-term bank borrowings RMB denominated interest rates ranging from3.10% to 3.48% with final maturities through 2021 (2016: 3.40% to 4.41%) 3,028 3,278 USD denominated interest rates ranging from 6-month 6-month 6-month 6-month 2,003 4,970 EUR denominated interest rates at 3 months Euribor+0.5% with final maturities through 2026 (2016: 3 months Euribor+0.5%) 4,024 4,215 Guaranteed bonds RMB denominated interest rates ranging from 3.03% to 5.05% with final maturities through 2026 (2016: 3.03% to 5.05%) 7,794 7,792 SGD denominated interest rates at 2.80% with final maturities through 2020 2,435 — KRW denominated interest rate at 2.05% with final maturities through 2019 (2016: 2.05%) 727 684 Unsecured bonds RMB denominated interest rates ranging from 3.00% to 3.39% with final maturities through 2021 (2016: from 3.00% to 3.39%) 8,500 8,500 KRW denominated interest rate at 2.85% with final maturities through 2019 (2016: 2.85%) 331 310 Total long-term borrowings and bonds 28,842 29,749 |
Provision for Return Conditio90
Provision for Return Condition Checks for Aircraft Under Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Provision for Return Condition Checks for Aircraft Under Operating Leases | 2017 2016 RMB million RMB million At 1 January 3,670 3,503 Accrual 1,214 1,010 Utilization (1,865 ) (843 ) At 31 December 3,019 3,670 Less: current portion (981 ) (1,175 ) Long-term portion 2,038 2,495 |
Other Long-term Liabilities (Ta
Other Long-term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Other Long-term Liabilities | 2017 2016 RMB million RMB million Fair value of unredeemed points awarded under the Group’s frequent flyer programmes 2,030 1,750 Long-term duties and levies payable relating to finance leases 1,411 1,608 Other long-term payables 1,321 1,151 4,762 4,509 Less: current portion included in other payables and accruals (note 32) (1,038 ) (635 ) Long-term portion 3,724 3,874 |
Post-Retirement Benefit Oblig92
Post-Retirement Benefit Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Post-retirement Benefit Obligations Recognized in Consolidated Statement of Financial Position | The post-retirement benefit obligations recognized in the consolidated statement of financial position are as follows: 2017 2016 RMB million RMB million Post-retirement benefit obligations 2,670 3,063 Less: current portion (168 ) (173 ) Long-term portion 2,502 2,890 |
Summary of Principal Actuarial Assumptions Utilized | The principal actuarial assumptions utilized as at the end of the reporting period are as follows: 2017 2016 Discount rates for post-retirement benefits 4.10 % 3.50 % Mortality rate China Insurance China Insurance Life Mortality Life Mortality Table (2010-2013). CL5 for Table (2010-2013). CL5 for Male and CL6 for Female Male and CL6 for Female Annual increase rate of post-retirement medical expenses 6.50 % 6.50 % Inflation rate of pension benefits 2.50 % 2.50 % |
Summary of Quantitative Sensitivity Analysis for Significant Assumptions | A quantitative sensitivity analysis for significant assumptions at the end of the reporting period is shown below: Increase/ Increase/ post-retirement post-retirement Increase benefit Decrease benefit in rate obligations in rate obligations % RMB million % RMB million 2017 Discount rate for post-retirement benefits 0.25 (73 ) 0.25 77 Annual increase rate of pension benefits 1.00 283 1.00 (240 ) Annual increase rate of medical expenses 1.00 40 1.00 (33 ) 2016 Discount rate for post-retirement benefits 0.25 (95 ) 0.25 100 Annual increase rate of pension benefits 1.00 325 1.00 (275 ) Annual increase rate of medical expenses 1.00 46 1.00 (38 ) |
Summary of Expected Contributions of Post-retirement Benefit Obligations | Expected contributions to be made in the future years out of the post-retirement benefit obligations were as follows: 2017 2016 RMB million RMB million Within the next 12 months 168 173 Between 2 and 5 years 679 706 Between 5 and 10 years 851 894 Over 10 years 3,049 3,342 Total expected payments 4,747 5,115 |
Summary of Movements in Post-retirement Benefit Obligations | The movements in the post-retirement benefit obligations were as follows: 2017 Pension cost charged to profit or loss Remeasurement (gains)/losses 1 January Service cost Net interest Sub-total Actuarial Actuarial Experience Sub-total included in other comprehensive Benefit Transferred 31 Defined benefit obligations/ benefit liability 3,063 — 98 98 (220 ) — 96 (124 ) (200 ) (167 ) 2,670 2016 Pension cost charged to profit or loss Remeasurement (gains)/losses 1 January Service cost Net interest Sub-total Actuarial Actuarial Experience Sub-total included in other comprehensive income Benefit 31 Defined benefit obligations/ benefit liability 2,750 — 88 88 (80 ) 373 117 410 (185 ) 3,063 |
Deferred Taxation (Tables)
Deferred Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Net Deferred Tax Assets/(Liabilities) | The following amounts, determined after appropriate offsetting, are shown in the consolidated statement of financial position: 2017 2016 RMB million RMB million Deferred tax assets 122 79 Deferred tax liabilities (18 ) (86 ) Net deferred tax assets/(liabilities) 104 (7 ) |
Summary of Movements in Net Deferred Tax Assets/(Liabilities) | Movements in the net deferred tax assets/(liabilities) were as follows: 2017 2016 RMB million RMB million At 1 January (7 ) 235 Credited/(charged) to profit or loss (note 14) 162 (146 ) Charged to other comprehensive income (51 ) (96 ) At 31 December 104 (7 ) |
Summary of Deferred Tax Assets and Liabilities Prior to Offsetting of Balances within Same Tax Jurisdiction | The deferred tax assets and liabilities (prior to the offsetting of balances within the same tax jurisdiction) were made up of the taxation effects of the following: 2017 2016 RMB million RMB million Deferred tax assets: Impairment provision for obsolete flight equipment spare parts 51 22 Impairment provision for receivables 64 70 Impairment provision for property, plant and equipment 104 11 Derivative financial instruments 82 15 Impairment provision for available-for-sale 25 25 Other payables and accruals 29 88 Aged payables 5 7 360 238 Deferred tax liabilities: Depreciation and amortization (56 ) (85 ) Available-for-sale (162 ) (123 ) Derivative financial instruments (38 ) (37 ) (256 ) (245 ) 104 (7 ) |
Summary of Movements in Net Deferred Tax (Liabilities)/Assets of the Group | Movements in the net deferred tax assets/(liabilities) of the Group for the year were as follows: (Charged)/ At the (Charged)/ credited to other At the beginning of credited to comprehensive end of the year profit or loss income the year RMB million RMB million RMB million RMB million For the year ended 31 December 2017 Impairment provision for flight equipment spare parts 22 29 — 51 Impairment provision for receivables 70 (6 ) — 64 Impairment provision for property, plant and equipment 11 93 — 104 Derivative financial instruments 15 78 (11 ) 82 Impairment provision for available-for-sale 25 — — 25 Other payables and accruals 88 (59 ) — 29 Aged payables 7 (2 ) — 5 238 133 (11 ) 360 Depreciation and amortization (85 ) 29 — (56 ) Available-for-sale (123 ) — (39 ) (162 ) Derivative financial instruments (37 ) — (1 ) (38 ) (245 ) 29 (40 ) (256 ) Net deferred tax assets/(liabilities) (7 ) 162 (51 ) 104 (Charged)/ At the (Charged)/ credited to other At the beginning of credited to comprehensive end of the year profit or loss income the year RMB million RMB million RMB million RMB million For the year ended 31 December 2016 Impairment provision for flight equipment spare parts 43 (21 ) — 22 Impairment provision for receivables 80 (10 ) — 70 Impairment provision for property, plant and equipment 26 (15 ) — 11 Derivative financial instruments 25 — (10 ) 15 Impairment provision for available-for-sale 25 — — 25 Other payables and accruals 89 (1 ) — 88 Tax losses 133 (133 ) — — Aged payables — 7 — 7 421 (173 ) (10 ) 238 Depreciation and amortization (136 ) 51 — (85 ) Available-for-sale (39 ) (24 ) (60 ) (123 ) Derivative financial instruments (11 ) — (26 ) (37 ) (186 ) 27 (86 ) (245 ) Net deferred tax assets/(liabilities) 235 (146 ) (96 ) (7 ) |
Summary of Balances for Which Deferred Tax Assets Have Not Been Recognised | As at the reporting date, the Group had the following balances in respect of which deferred tax assets have not been recognized: 2017 2016 Deferred Temporary Deferred Temporary taxation differences taxation differences RMB million RMB million RMB million RMB million Tax losses carried forward 42 167 409 1,637 Other deductible temporary differences 6 27 32 128 Total unrecognized deferred tax assets 48 194 441 1,765 |
Derivative Financial Instrume94
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Derivative Financial Instruments | Assets Liabilities 2017 2016 2017 2016 RMB million RMB million RMB million RMB million At 31 December Interest rate swaps (note (a)) 151 137 14 47 Forward foreign exchange contracts (note (b)) — 11 311 11 Total 151 148 325 58 Less: current portion – Forward foreign exchange contracts — (11 ) (324 ) (11 ) Non-current 151 137 1 47 Notes: (a) Interest rate swaps The Group uses interest rate swaps to reduce the risk of changes in market interest rates (note 40). The interest rate swaps entered into by the Group for swapping floating interest rates, usually referenced to LIBOR, into fixed rates are accounted for as cash flow hedges. As at 31 December 2017, the notional amount of the outstanding interest rate swap agreements was approximately USD1,420 million (2016: USD1,636 million). These agreements will expire between 2018 and 2025. Realized and unrealized gains and losses arising from the valuation of these interest rate swaps have been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized losses (recorded in finance costs) (63 ) (122 ) (134 ) Unrealized mark to market gains – cash flow hedges (recognized in other comprehensive income) 47 166 2 – fair value hedges (recognized in (loss)/gain on fair value changes of derivative financial instruments) — 2 6 (16 ) 46 (126 ) (b) Forward foreign exchange contracts The Group uses foreign exchange forward contracts to reduce the risk of changes in currency exchange rates in respect of ticket sales and expenses denominated in foreign currencies (note 3). The Group’s foreign exchange forward contracts for selling RMB and purchasing USD at fixed exchange rates are accounted for as fair value hedges. As at 31 December 2017, the notional amount of the outstanding currency forward contracts was approximately USD829 million (2016: USD440 million), which will expire in 2018. Realized and unrealized gains and losses arising from the valuation of these contracts have been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized (losses)/gains (recorded in finance costs) (177 ) 5 15 Unrealized mark to market losses – cash flow hedges (recognized in other comprehensive income) — (16 ) (11 ) – fair value hedges (recognized in (loss)/gain on fair value changes of derivative financial instruments) (311 ) — — (488 ) (11 ) 4 (c) Cross currency swap The Group uses cross currency swap to reduce the risk of changes in currency exchange rates and market interest rates. The cross currency swap entered into by the Group for swapping US dollars floating interest rates (LIBOR) into Euro floating interest rates (EURIBOR), is accounted for as a cash flow hedge. As at 31 December 2017, there were no outstanding cross currency swap (2016:nil). Realized and unrealized gain and loss arising from the valuation of the contract has been dealt with in the consolidated statement of profit or loss and other comprehensive income as follows: 2017 2016 2015 RMB million RMB million RMB million Realized gains (recorded in finance costs) — 5 — Unrealized mark to market (losses)/gains – cash flow hedge (recognized in other comprehensive income) — (7 ) 7 — (2 ) 7 |
Financial assets and financia95
Financial assets and financial liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Financial Instruments by Category | (a) Financial instruments by category Derivatives Loans and used for Available receivables hedging for sale Total RMB million RMB million RMB million RMB million 2017 Financial assets Available-for-sale — — 800 800 Derivative financial instruments — 151 — 151 Trade and notes receivables 2,124 — — 2,124 Prepayments and other receivables 3,913 — — 3,913 Restricted bank deposits and short-term bank deposits 51 — — 51 Cash and cash equivalents 4,605 — — 4,605 Other non-current 293 — — 293 Total 10,986 151 800 11,937 Derivatives used for Loans and hedging borrowings Total RMB million RMB million RMB million 2017 Financial liabilities Borrowings — 63,801 63,801 Obligations under finance leases — 66,868 66,868 Derivative financial instruments 325 — 325 Trade and bills payables — 3,184 3,184 Other payables and accruals — 12,964 12,964 Total 325 146,817 147,142 Derivatives Loans and used for Available receivables hedging for sale Total RMB million RMB million RMB million RMB million 2016 Financial assets Available-for-sale — — 645 645 Derivative financial instruments — 148 — 148 Trade and notes receivables 2,660 — — 2,660 Prepayments and other receivables 2,937 — — 2,937 Restricted bank deposits and short-term bank deposits 43 — — 43 Cash and cash equivalents 1,695 — — 1,695 Other non-current 285 — — 285 Total 7,620 148 645 8,413 Derivatives used for Loans and hedging borrowings Total RMB million RMB million RMB million 2016 Financial liabilities Borrowings — 56,732 56,732 Obligations under finance leases — 61,041 61,041 Derivative financial instruments 58 — 58 Trade and bills payables — 3,376 3,376 Other payables and accruals — 12,942 12,942 Total 58 134,091 134,149 |
Summary of Contractual Undiscounted Cash Flows of Financial Liabilities | The table below analyses the Group’s financial liabilities that will be settled into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Less than Over 1 year 1 and 2 years 2 and 5 years 5 years Total RMB million RMB million RMB million RMB million RMB million At 31 December 2017 Borrowings 41,060 7,325 10,161 10,014 68,560 Derivative financial instruments 324 — 1 — 325 Obligations under finance leases 11,651 10,408 27,895 30,196 80,150 Trade, bills and other payables 16,148 — — — 16,148 Total 69,183 17,733 38,057 40,210 165,183 Less than Over 1 year 1 and 2 years 2 and 5 years 5 years Total RMB million RMB million RMB million RMB million RMB million At 31 December 2016 Borrowings 30,262 5,670 14,961 10,813 61,706 Derivative financial instruments 11 33 8 6 58 Obligations under finance leases 8,123 7,526 21,905 33,277 70,831 Trade, bills and other payables 16,318 — — — 16,318 Total 54,714 13,229 36,874 44,096 148,913 |
Summary of Debt Ratio | The Group monitors capital on the basis of the debt ratio, which is calculated as total liabilities divided by total assets. The debt ratios at 31 December 2017 and 2016 were as follows: 2017 2016 RMB million RMB million Total liabilities 170,949 159,958 Total assets 229,727 212,324 Debt ratio 0.74 0.75 |
Summary of Financial Instruments Not Measured at Fair Value | The carrying amounts and fair values of the Group’s financial instruments, other than those with carrying amounts that reasonably approximate to fair values, were as follows: 2017 2016 Carrying Carrying amounts Fair values amounts Fair values RMB million RMB million RMB million RMB million Financial assets Deposits relating to aircraft held under operating leases included in other non-current 217 193 285 258 Financial liabilities Long-term borrowings 24,711 23,812 27,890 28,075 Obligations under finance leases 57,627 57,352 54,594 50,408 Total 82,338 81,164 82,484 78,483 |
Disclosure of fair value of financial instruments | The following tables illustrate the fair value measurement hierarchy of the Group’s financial instruments: Assets and liabilities measured at fair value: As at 31 December 2017 Fair value measurement using Quoted prices RMB million Significant RMB million Significant RMB million Total RMB million Assets Derivative financial instruments -Interest rate swaps (note 39(a)) — 151 — 151 Available-for-sale 693 — — 693 Total 693 151 — 844 Liabilities Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 311 — 311 -Interest rate swaps (note 39(a)) — 14 — 14 Total — 325 — 325 As at 31 December 2016 Fair value measurement using Quoted prices Significant Significant Total RMB million RMB million RMB million RMB million Assets Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 11 — 11 -Interest rate swaps (note 39(a)) — 137 — 137 Available-for-sale 538 — — 538 Total 538 148 — 686 Liabilities Derivative financial instruments -Forward foreign exchange contracts (note 39(b)) — 11 — 11 -Interest rate swaps (note 39(a)) — 47 — 47 Total — 58 — 58 |
Interest Rate Risk [Member] | |
Summary of Risk | The following tables detail the interest rate profiles of the Group’s interest-bearing financial instruments at the reporting dates: 2017 2016 RMB million RMB million Floating rate instruments Cash and cash equivalents 4,605 1,695 Restricted bank deposits and short-term bank deposits 51 43 Borrowings (13,272 ) (15,419 ) Obligations under finance leases (66,868 ) (61,041 ) Interest rate swap at notional amount 9,280 11,352 2017 2016 RMB million RMB million Fixed rate instruments Borrowings (50,529 ) (41,313 ) |
Summary of Sensitivity Analysis of Risk | The following table indicates the approximate change in the Group’s profit or loss and other comprehensive income, taking the interest rate swap into consideration, if interest rate had been 25 basis points higher with all other variables held constant: 2017 2016 Effect on other Effect on other Effect on comprehensive Effect on comprehensive profit or loss income profit or loss income RMB million RMB million RMB million RMB million Floating rate instruments (142 ) 17 (140 ) 21 |
Foreign Currency Risk [Member] | |
Summary of Risk | The following tables detail the Group’s exposure to major currency risk at the reporting dates: 2017 USD EUR SGD KRW RMB million RMB million RMB million RMB million Trade receivables 31 3 16 16 Cash and cash equivalents 961 74 28 — Other receivables 1,065 — 1 131 Other non-current 206 — — — Trade and other payables (111 ) — (6 ) — Obligations under finance leases (29,254 ) — (627 ) — Borrowings (7,555 ) (4,921 ) (2,435 ) (1,058 ) 2016 USD EUR JPY KRW RMB million RMB million RMB million RMB million Trade receivables 79 99 2 27 Cash and cash equivalents 702 39 15 — Other receivables 1,636 — 8 125 Other non-current 267 — — — Trade and other payables (123 ) — (2 ) (1 ) Obligations under finance leases (44,913 ) — (326 ) — Borrowings (7,953 ) (4,215 ) — (1,008 ) |
Summary of Sensitivity Analysis of Risk | The following tables indicate the approximate change in the Group’s consolidated statement of profit or loss and other comprehensive income in response to a 1% appreciation or depreciation of the RMB against the following major currencies at the reporting dates: 2017 2016 Effect on other Effect on other Effect on comprehensive Effect on comprehensive profit or loss income profit or loss income RMB million RMB million RMB million RMB million If RMB (weakens)/strengthens against USD (260)/260 41/(41 ) (377)/377 23/(23 ) If RMB (weakens)/strengthens against EUR (36)/36 — (31)/31 — If RMB (weakens)/strengthens against JPY (1)/1 — (2)/2 — If RMB (weakens)/strengthens against KRW (7)/7 — (6)/6 — |
At fair value [member] | |
Disclosure of fair value of financial instruments | Assets and liabilities for which fair values are disclosed: As at 31 December 2017 Fair value measurement using Quoted prices Significant inputs (Level 2) Significant (Level 3) Total RMB million RMB million RMB million RMB million Assets Deposits relating to aircraft held under operating leases included in other long-term assets — 193 — 193 Liabilities Long-term borrowings 2,678 21,134 — 23,812 Obligations under finance leases — 57,352 — 57,352 Total 2,678 78,486 — 81,164 As at 31 December 2016 Fair value measurement using Quoted prices Significant Significant (Level 3) Total RMB million RMB million RMB million RMB million Assets Deposits relating to aircraft held under operating leases included in other long-term assets — 258 — 258 Liabilities Long-term borrowings — 28,075 — 28,075 Obligations under finance leases — 50,408 — 50,408 Total — 78,483 — 78,483 |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
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Summary of Share Capital | 2017 2016 RMB million RMB million Registered, issued and fully paid of RMB1.00 each A shares listed on The Shanghai Stock Exchange (“A Shares”) - Tradable shares held by Shanghai Licheng Information - Technology Consulting Co., Ltd. with trading moratorium — 466 - Tradable shares held by China National Aviation Fuel - Holding Company with trading moratorium — 466 - Tradable shares held by China COSCO Shipping - Corporation Limited with trading moratorium — 233 - Tradable shares held by Caitong Fund Management - Co., Ltd. with trading moratorium — 162 - Tradable shares without trading moratorium 9,808 8,481 H shares listed on The Stock Exchange of Hong Kong Limited (“H Shares”) 4,659 4,659 - 14,467 14,467 |
Summary of Movements in Share Capital | A summary of movements in the Company’s share capital is as follows: Number of At 1 January 2017 14,467 Issue of shares — At 31 December 2017 14,467 |
Reserves (Tables)
Reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Reserves | Share Capital Hedging Statutory Other Retained Total RMB million RMB million RMB million RMB million RMB million RMB million RMB million At 1 January 2016 22,327 (778 ) (51 ) 184 (2,579 ) 5,168 24,271 Unrealized gains on cash flow hedges (note 39) — — 107 — — — 107 Fair value movements in available-for-sale — — — — 36 — 36 Fair value changes of available-for-sale — — — — (1 ) — (1 ) Actuarial gains on post-retirement benefit obligations — — — — (403 ) — (403 ) Transfer from retained profits — — — 144 — (144 ) — Issue of shares 7,213 — — — — — 7,213 Profit for the year — — — — — 4,498 4,498 Interim 2016 dividend (note 48) — — — — — (738 ) (738 ) At 31 December 2016 29,540 (778 ) 56 328 (2,947 ) 8,784 34,983 At 1 January 2017 29,540 (778 ) 56 328 (2,947 ) 8,784 34,983 Unrealized gains on cash flow hedges (note 39) — — 35 — — — 35 Fair value movements in available-for-sale — — — — 110 — 110 Fair value changes of available-for-sale — — — — 10 — 10 Actuarial gains on post-retirement benefit obligations — — — — 122 — 122 Transfer from retained profits — — — 212 — (212 ) — Issue of shares — — — — — — — Profit for the year — — — — — 6,342 6,342 Final 2016 dividend — — — — — (709 ) (709 ) At 31 December 2017 29,540 (778 ) 91 540 (2,705 ) 14,205 40,893 Notes: (a) Capital reserve Capital reserve represents the difference between the fair value of the net assets injected and the nominal amount of the Company’s share capital issued in respect of a group restructuring carried out in June 1996 for the purpose of the Company’s listing. (b) Reserve funds According to the PRC Company Law, the Company is required to transfer a portion of the profits to the statutory reserve. The transfer to this reserve must be made before distribution of dividends to shareholders and when there are retained profits at the end of the financial year. |
Disposal of a Subsidiary (Table
Disposal of a Subsidiary (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Disposal of a Subsidiary | On 29 November 2016, the Company entered into Share Purchase Agreement with Eastern Airlines Industry Investment Company Limited, a wholly-owned subsidiary of CEA Holding, to transfer 100% equity interest in Eastern Logistics, a wholly-owned subsidiary of the Company (“the Transfer”). At of 8 February 2017, the Transfer has been completed. 2017 Net assets disposed of: Intangible assets (note 17) 14 Property, plant and equipment (note 18) 2,019 Prepayments for land use right 305 Other non-current assets 429 Deferred tax assets 4 Flight equipment spare parts 59 Trade receivables 1,097 Prepayments and other receivables 670 Cash and cash equivalents 536 Restricted bank deposits 1 Sales in advance of carriage (124 ) Trade payables (1,915 ) Other payables and accruals (1,090 ) Income tax payable (26 ) Obligations under finance leases (409 ) Borrowings (262 ) Provision for return condition checks for aircraft under operating leases (511 ) Other long-term liabilities (47 ) Post-retirement benefit obligations (158 ) Non-controlling 87 Net assets 679 Gain on disposal of a subsidiary 1,754 Satisfied by: Cash 2,433 |
Summary of Analysis of Net Inflow of Cash and Cash Equivalents in Respect of Disposal of a Subsidiary | An analysis of the net inflow of cash and cash equivalents in respect of the disposal of a subsidiary is as follows: 2017 Cash consideration 2,433 Cash and bank balances disposed of (536 ) Net inflow of cash and cash equivalents in respect of the disposal of a subsidiary 1,897 |
Partly-owned Subsidiaries wit99
Partly-owned Subsidiaries with Material Non-controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Subsidiaries that have Material Non-controlling Interests | Details of the Group’s subsidiaries that have material non-controlling 2017 2016 Percentage of equity interest held by non-controlling CEA Jiangsu 37.44 % 37.44 % CEA Yunnan 9.64 % 9.64 % CEA Wuhan 40.00 % 40.00 % China Cargo — 17.00 % 2017 2016 RMB million RMB million Profit for the year allocated to non-controlling CEA Jiangsu 216 191 CEA Yunnan 67 75 CEA Wuhan 178 173 China Cargo 3 29 Dividends paid to non-controlling 37 56 Dividends paid to non-controlling 22 — Accumulated balances of non-controlling CEA Jiangsu 1,416 1,236 CEA Yunnan 641 574 CEA Wuhan 1,393 1,249 China Cargo — (105 ) |
Summary of Financial Information of Subsidiaries that have Material Non-controlling Interests | The following tables illustrate the summarized financial information of the above subsidiaries. The amounts disclosed are before any inter-company eliminations: CEA Jiangsu CEA Yunnan CEA Wuhan China Cargo RMB million RMB million RMB million RMB million 2017 Revenue 8,257 8,939 4,289 507 Total expenses 7,680 8,244 3,843 462 Profit for the year 577 695 446 45 Total comprehensive income for the year 580 695 461 45 Current assets 1,124 1,230 79 — Non-current 9,313 16,171 7,047 — Current liabilities 2,260 4,471 1,576 — Non-current 4,395 6,282 2,067 — Net cash flows from operating activities 1,491 1,230 846 — Net cash flows used in investing activities (588 ) (274 ) (156 ) — Net cash flows used in financing activities (894 ) (948 ) (682 ) — Effect of foreign exchange rate changes, net — — — — Net increase in cash and cash equivalents 9 8 8 — CEA Jiangsu CEA Yunnan CEA Wuhan China Cargo RMB million RMB million RMB million RMB million 2016 Revenue 7,298 9,054 3,706 3,770 Total expenses 6,787 8,280 3,273 3,598 Profit for the year 511 774 433 172 Total comprehensive income for the year 503 774 438 157 Current assets 1,260 990 79 1,595 Non-current 8,163 16,153 6,108 1,525 Current liabilities 1,971 3,056 1,216 2,834 Non-current 4,149 8,134 1,849 889 Net cash flows from/( used in ) operating activities 1,937 3,178 (196 ) 279 Net cash flows (used in)/from investing activities (675 ) (1,098 ) 428 11 Net cash flows used in financing activities (1,301 ) (2,096 ) (241 ) (11 ) Effect of foreign exchange rate changes, net — — — (1 ) Net (decrease)/increase in cash and cash equivalents (39 ) (16 ) (9 ) 278 |
Notes to the Statement of Co100
Notes to the Statement of Consolidated Cash Flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Notes to Statement of Consolidated Cash Flows | (a) Cash generated from operations 2017 2016 2015 RMB million RMB million RMB million Profit before income tax 8,610 6,497 5,667 Adjustments for: Depreciation of property, plant and equipment and amortization of other non-current 13,769 12,345 10,710 Amortization of intangible assets 143 129 85 Depreciation of investment properties 12 11 4 Amortization of prepayments for land use right 45 63 60 Gains on disposal of property, plant and equipment (13 ) (74 ) (377 ) Gain on disposal of prepayments for land use right (5 ) (3 ) (1 ) Gain on disposal of investment in a subsidiary (1,754 ) — (41 ) Gain on disposal of investment in an associate (12 ) (12 ) — Gain on disposal of available-for-sale (4 ) (95 ) (33 ) Dividend income from available-for-sale (33 ) (28 ) (13 ) Share of results of associates (202 ) (148 ) (126 ) Share of results of joint ventures (49 ) (39 ) (26 ) Net foreign exchange losses (2,378 ) 3,246 5,480 Gain on fair value changes of derivative financial instruments 311 (2 ) (6 ) Impairment charges 491 29 228 Interest income (111 ) (96 ) (66 ) Interest expense 3,184 2,641 2,075 Operating profit before working capital changes 22,004 24,464 23,620 Changes in working capital Flight equipment spare parts (109 ) (202 ) 117 Trade and notes receivables (500 ) 208 985 Prepayments and other receivables (753 ) (839 ) (2,011 ) Restricted bank deposits and short-term bank deposits (8 ) (8 ) — Sales in advance of carriage (569 ) 1,836 777 Trade and bills payables 1,725 (336 ) 1,629 Other payables and accruals 340 1,424 (234 ) Staff housing allowances 62 (57 ) 105 Other long-term liabilities (728 ) (883 ) 1,164 Post-retirement benefit obligations (217 ) 321 (282 ) Provision for return condition checks for aircraft under operating leases (139 ) 167 (381 ) Operating lease deposits — 59 46 Cash generated from operations 21,108 26,154 25,535 |
Summary of Major Non-cash Transactions | (b) Major non-cash 2017 2016 2015 RMB million RMB million RMB million Finance lease obligations incurred for acquisition of aircraft 6,865 8,838 21,887 |
Summary of Changes in Liabilities Arising from Financing Activities | (c) Changes in liabilities arising from financing activities Bank and Obligations under RMB million RMB million At 1 January 2017 56,732 61,041 Changes from financing cash flow 7,450 (10,587 ) Reclassified as part of the disposal group (262 ) (409 ) Foreign exchange movement (119 ) (2,362 ) New finance leases — 19,185 At 31 December 2017 63,801 66,868 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Capital Commitments | The Group had the following capital commitments: 2017 2016 RMB million RMB million Contracted for: – Aircraft, engines and flight equipment (note) 87,030 123,019 – Other property, plant and equipment 7,572 9,550 – Investments 208 140 94,810 132,709 |
Summary of Aged Analysis of Contracted Expenditures for Aircraft, Engines and Flight Equipment | Contracted expenditures for the above aircraft, engines and flight equipment, including deposits prior to delivery, subject to future inflation increase built into the contracts, were expected to be paid as follows: 2017 2016 RMB million RMB million Within one year 28,322 28,384 In the second year 27,516 32,306 In the third year 19,273 28,983 In the fourth year 7,829 18,334 Over four years 4,090 15,012 87,030 123,019 |
Summary of Future Minimum Lease Rentals Under Operating Leases | As at the reporting date, the Group had commitments to pay future minimum lease rentals under operating leases as follows: 2017 2016 RMB million RMB million Aircraft, engines and flight equipment Within one year 3,048 3,814 In the second year 2,559 3,124 In the third to fifth years, inclusive 7,112 7,616 After the fifth year 7,528 7,605 20,247 22,159 Land and buildings Within one year 332 362 In the second year 164 225 In the third to fifth years, inclusive 156 411 After the fifth year 37 732 689 1,730 20,936 23,889 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Nature of Related Parties | (a) Nature of related parties that do not control or controlled by the Group: Name of related party Relationship with the Group Eastern Air Finance Company Associate of the Company Eastern Aviation Import & Export Co., Ltd. and its subsidiaries (“Eastern Import & Export”) Associate of the Company Shanghai P&W Associate of the Company Eastern Advertising Associate of the Company Collins Aviation Associate of the Company CAE Melbourne Joint venture of the Company Wheels & Brakes Joint venture of the Company Technologies Aerospace Joint venture of the Company China Kaiya Joint venture of the Company Shanghai Hute Joint venture of the Company CEA Development Co., Limited and its subsidiaries (“CEA Development”) Controlled by the same parent company China Eastern Air Catering Investment Co., Limited and its subsidiaries (“Eastern Air Catering”) Controlled by the same parent company CES International Financial Leasing Corporation Limited and its subsidiaries (“CES Lease Company”) Controlled by the same parent company Shanghai Eastern Airlines Investment Co., Ltd. (“Eastern Investment”) Controlled by the same parent company Shanghai Eastern Airlines Logistics Co., Ltd. and its subsidiaries (“Eastern Logistics”) (note) Controlled by the same parent company Eastern Airlines Industry Investment Company Limited (“Eastern Airlines Industry Investment”) Controlled by the same parent company TravelSky Technology Limited (“TravelSky”) A director and vice president of the Company is a director of Travelsky China Aviation Supplies Holding Company and its A director and vice president of the subsidiaries (“CASC”) Company is a director of CASC Air France-KLM A director and vice president of the Company is a director of AFK |
Summary of Related Party Transactions | (b) Related party transactions Income or receipts/ (expense or payments) Pricing policy 2017 2016 Nature of transaction decision Related party and process RMB million RMB million Interest income on deposits Eastern Air Finance Company (iv) 29 23 Interest expense on loans Eastern Air Finance Company (iv) (2 ) (10 ) CEA Holding (iv) (1 ) (1 ) Handling charges for purchase of aircraft, flight, equipment, flight equipment spare parts, other property, plant and flight equipment and repairs for aircraft and engines* Eastern Import & Export (ii) (145 ) (105 ) Repairs and maintenance expense for aircraft and engines Wheels & Brakes (ii) (152 ) (176 ) Technologies Aerospace (ii) (276 ) (252 ) Shanghai P&W (ii) (2,538 ) (2,049 ) Shanghai Hute (ii) (60 ) (84 ) Supply of cabin cleaning services Eastern Advertising (ii) (22 ) (21 ) Advertising expense* Eastern Advertising (ii) (23 ) (36 ) Media royalty fee Eastern Advertising (iii) 15 17 Supply of logistics services Eastern Import & Export (ii) (87 ) (72 ) Supply of system services China Kaiya (ii) (44 ) (79 ) Supply of food and beverages* Eastern Air Catering (i) (1,254 ) (1,054 ) CEA Development (i) (72 ) (51 ) Eastern Import & Export (i) (58 ) (50 ) Cargo handling income Eastern Import & Export (iii) — 15 Automobile maintenance service, aircraft maintenance, providing transportation automobile and other products* CEA Development (ii) (68 ) (86 ) Equipment maintenance fee Collins Aviation (ii) (62 ) (30 ) CEA Development (ii) (53 ) (11 ) Property management and green maintenance expenses* CEA Development (ii) (75 ) (59 ) Supply of hotel accommodation service CEA Development (ii) (104 ) (91 ) Land and building rental* CEA Holding (ii) (54 ) (54 ) Cargo terminal business support services* Eastern Logistics (ii)&(vi) (281 ) — Bellyhold space management* Eastern Logistics (ii)&(vi) (117 ) — Transfer of the pilots Eastern Logistics (ii)&(vi) (7 ) — Freight logistics support services* Eastern Logistics (ii)&(vi) 100 — Bellyhold container management Eastern Logistics (ii)&(vi) (9 ) — Payments on finance leases* CES Lease Company (ii) (1,997 ) (2,721 ) Payments on operating leases* CES Lease Company (ii) (25 ) — Disposal of a subsidiary Eastern Airlines Industry Investment (v) 1,754 — Civil aviation information network services** TravelSky (ii) (551 ) (590 ) Flight training fee CAE Melbourne (ii) (138 ) (68 ) Flight equipment spare parts maintenance** CASC (ii) (98 ) — Payments on aviation transportation cooperation and support services** AFK (ii) (399 ) — Aviation transportation cooperation and support services** AFK (ii) 622 — (i) The Group’s pricing policies on products purchased from related parties are mutually agreed between the contract parties. (ii) The Group’s pricing policies on services provided by related parties are mutually agreed between the contract parties. (iii) The Group’s pricing policies on services provided to related parties are mutually agreed between the contract parties. (iv) The Group’s pricing policies on related party interest rates are mutually agreed between the contract parties by reference to the benchmark interest rates. (v) The Group’s pricing policies on transfer of equity or disposal of investments are mutually agreed based on the valuation prices. (vi) The Group’s related party transactions with Eastern logistics only includes the transactions made after the disposal (note 43). * These related party transactions also constitute connected transactions or continuing connected transactions as defined in Chapter 14A of the Rules Governing the Listing of Securities on the Stock Exchange (the “Listing Rules”). ** This related party transaction constitutes a continuing connected transaction pursuant to the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange. |
Summary of Balances with Related Parties | (c) Balances with related parties (i) Amounts due from related parties 2017 2016 RMB million RMB million Trade receivables Eastern Logistics 194 — Eastern Air Catering 1 — 195 — 2017 2016 RMB million RMB million Prepayments and other receivables Eastern Import & Export 379 536 Technologies Aerospace 10 16 Eastern Air Catering 135 57 Eastern Advertising 29 — CEA development 2 2 CEA Holding 9 — TravelSky 5 — Others — 5 569 616 All the amounts due from related parties are trade in nature, interest-free and payable within normal credit terms. (ii) Amounts due to related parties 2017 2016 RMB million RMB million Trade and bills payables Eastern Import & Export 51 85 Eastern Air Catering 31 37 Technologies Aerospace 105 45 CEA development 25 19 Collins Aviation 1 2 CEA Holding 4 3 CASC 9 18 Shanghai Hute 14 19 Others 1 4 241 232 Other payables and accruals Eastern Import & Export 2 240 Shanghai P&W 578 324 Eastern Air Catering 10 166 CEA Holding 302 303 Shanghai Hute 11 20 Technologies Aerospace 1 29 Wheels & Brakes 16 26 CEA Development 50 72 TravelSky 551 963 Eastern Advertising 2 18 CAE Melbourne 316 368 Eastern Investment 269 — Others 3 5 2,111 2,534 2017 2016 RMB million RMB million Obligations under finance leases CES Lease Company 11,934 5,521 Except for the amounts due to CES Lease Company, which are related to the aircraft under finance leases, all other amounts due to related parties are interest-free and payable within normal credit terms given by trade creditors. (iii) Short-term deposits and borrowings with associates and CEA Holding Average interest rate 2017 2016 2017 2016 RMB million RMB million Short-term deposits (included in cash and cash equivalents) Eastern Air Finance Company 0.35 % 0.35 % 4,053 1,296 Long-term borrowings (included in borrowings) CEA Holding 3.48 % 3.48 % 28 28 |
Summary of Key Management Compensation | The compensation paid or payable to key management for employee services mainly comprising of salaries and other short-term employee benefits was analyzed as follows: 2017 2016 RMB million RMB million Directors and supervisors 3 2 Senior management 6 4 9 6 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Dividends | 2017 2016 2015 RMB million RMB million RMB million Interim –Nil (2016: RMB5.1 cents) per ordinary share — 738 — Proposed final –RMB5.1 cents (2016: RMB4.9 cents) per ordinary share 740 709 — 740 1,447 — |
Corporate and Group Informat104
Corporate and Group Information - Summary of Principal Subsidiaries (Detail) ¥ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017CNY (¥) | Dec. 31, 2017HKD ($) | Dec. 31, 2016CNY (¥) | |
Disclosure of subsidiaries [Line Items] | |||
Issued ordinary/registered share capital | ¥ 14,467 | ¥ 14,467 | |
China Eastern Airlines Jiangsu Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Apr. 7, 1993 | ||
Issued ordinary/registered share capital | ¥ 2,000 | ||
Principal activities | Provision of airline services | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines Jiangsu Co., Ltd. [member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 62.56% | ||
China Eastern Airlines Wuhan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Aug. 16, 2002 | ||
Issued ordinary/registered share capital | ¥ 1,750 | ||
Principal activities | Provision of airline services | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines Wuhan Co., Ltd. [member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 60.00% | ||
Shanghai Eastern Flight Training Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Dec. 18, 1995 | ||
Issued ordinary/registered share capital | ¥ 694 | ||
Principal activities | Provision of flight training services | ||
Place of businesss of subsidiary | Mainland China | ||
Shanghai Eastern Flight Training Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
Shanghai Airlines Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Mar. 16, 2010 | ||
Issued ordinary/registered share capital | ¥ 500 | ||
Principal activities | Provision of airline services | ||
Place of businesss of subsidiary | Mainland China | ||
Shanghai Airlines Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China Eastern Airlines Technology Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Nov. 19, 2014 | ||
Issued ordinary/registered share capital | ¥ 4,300 | ||
Principal activities | Provision of airline maintenance services | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines Technology Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China Eastern Business Jet Co Ltd [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Sep. 27, 2008 | ||
Issued ordinary/registered share capital | ¥ 50 | ||
Principal activities | Provision of airlines consultation services | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Business Jet Co Ltd [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China Eastern Airlines Yunnan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Aug. 2, 2011 | ||
Issued ordinary/registered share capital | ¥ 3,662 | ||
Principal activities | Provision of airline services | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines Yunnan Co., Ltd. [member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 90.36% | ||
Eastern Air Overseas (Hong Kong) Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | Hong Kong | ||
Date of incorporation | May 10, 2011 | ||
Issued ordinary/registered share capital | $ | $ 280 | ||
Principal activities | Provision of import and export, investment, leasing and consultation services | ||
Place of businesss of subsidiary | Hong Kong | ||
Eastern Air Overseas (Hong Kong) Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China United Airlines Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Sep. 21, 1984 | ||
Issued ordinary/registered share capital | ¥ 1,320 | ||
Principal activities | Provision of airline services | ||
Place of businesss of subsidiary | Mainland China | ||
China United Airlines Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
Eastern Airlines Hotel Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Mar. 18, 1998 | ||
Issued ordinary/registered share capital | ¥ 70 | ||
Principal activities | Provision of hotel services primarily to crew | ||
Place of businesss of subsidiary | Mainland China | ||
Eastern Airlines Hotel Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
Shanghai Airlines Tours International (Group) Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Aug. 29, 1992 | ||
Issued ordinary/registered share capital | ¥ 50 | ||
Principal activities | Tour operations, travel and air ticketing agency and transportation | ||
Place of businesss of subsidiary | Mainland China | ||
Shanghai Airlines Tours International (Group) Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China Eastern Airlines Application Development Center Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Nov. 21, 2011 | ||
Issued ordinary/registered share capital | ¥ 498 | ||
Principal activities | Provision of research and development of technology and products in the field of aviation | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines Application Development Center Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% | ||
China Eastern Airlines E-Commerce Co., Ltd. [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Place of incorporation/registration and address | PRC | ||
Date of incorporation | Dec. 1, 2014 | ||
Issued ordinary/registered share capital | ¥ 50 | ||
Principal activities | E-commerceplatform and ticket agent | ||
Place of businesss of subsidiary | Mainland China | ||
China Eastern Airlines E-Commerce Co., Ltd. [Member] | Direct [Member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity attributable to the Company | 100.00% |
Basis of Preparation, Changes i
Basis of Preparation, Changes in Accounting Policies and Disclosures, Issued but not yet Effective International Financial Reporting Standards, and Summary of Significant Accounting Policies - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations [abstract] | ||
Amount current liabilities exceeded current assets | ¥ (62,035) | ¥ (52,194) |
Unutilized banking facilities | 59,470 | |
Future minimum lease rentals under operating leases | ¥ 20,936 | ¥ 23,889 |
Summary of Significant Accou106
Summary of Significant Accounting Policies- Summary of Property, Plant and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Owned and finance leased aircraft and engines [Member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 15 years |
Owned and finance leased aircraft and engines [Member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 20 years |
Other flight equipment, including rotables [Member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 10 years |
Buildings [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 8 years |
Buildings [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 45 years |
Other property, plant and equipment [member] | Bottom of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 3 years |
Other property, plant and equipment [member] | Top of range [member] | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |
Estimated useful lives of property, plant and equipment | 20 years |
Summary of Significant Accou107
Summary of Significant Accounting Policies - Summary of Investment Property Estimated Useful Lives (Detail) - Buildings [member] | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | |
Disclosure of detailed information about investment property [Line Items] | |
Estimated useful lives of investment properties | 30 years |
Top of range [member] | |
Disclosure of detailed information about investment property [Line Items] | |
Estimated useful lives of investment properties | 35 years |
Revenues - Summary of Revenues
Revenues - Summary of Revenues (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [abstract] | |||
Traffic revenues | ¥ 95,187 | ¥ 89,554 | ¥ 85,076 |
- Passenger | 91,564 | 83,577 | 78,585 |
- Cargo and mail | 3,623 | 5,977 | 6,491 |
Tour operations income | 2,322 | 3,113 | 3,491 |
Ground service income | 1,323 | 2,850 | 2,546 |
Cargo handling and processing income | 69 | 794 | 750 |
Commission income | 112 | 92 | 78 |
Others | 3,462 | 2,501 | 2,028 |
Consolidated revenue | ¥ 102,475 | ¥ 98,904 | ¥ 93,969 |
Other Operating Income and G109
Other Operating Income and Gains - Summary of Other Operating Income and Gains (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Subsidy income | ¥ 4,941 | ¥ 4,531 | ¥ 4,131 |
Gain on disposal of property, plant and equipment | 69 | 158 | 399 |
Gain on disposal of prepayments for land use right | 5 | 3 | 1 |
Gain on disposal of available-for-sale investments | 4 | 95 | 33 |
Dividend income from available-for-sale investments | 33 | 28 | 13 |
Gain on disposal of an associate | 12 | 12 | |
Compensation from ticket sales agents | 271 | 228 | 248 |
Gain on disposal of a subsidiary | 1,754 | 41 | |
Others | 392 | 414 | 403 |
Other operating income and gains | ¥ 7,481 | ¥ 5,469 | ¥ 5,269 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017RegionSegment | |
Disclosure of operating segments [abstract] | |
Number of reportable operating segments | Segment | 1 |
Number of geographical areas where the group's business operates | Region | 3 |
Segment Information - Summary o
Segment Information - Summary of Segment Results (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [Line Items] | |||
Reportable segment revenue from external customers | ¥ 101,721 | ¥ 98,560 | ¥ 93,844 |
Reportable segment revenue | 101,721 | 98,560 | 93,844 |
Reportable segment profit before income tax | 8,620 | 6,507 | 5,671 |
Other segment information | |||
Depreciation and amortization | 13,959 | 12,538 | 10,855 |
Impairment charges | 491 | 29 | 228 |
Interest income | 2,112 | 96 | 66 |
Finance expenses | 3,184 | 2,729 | 2,189 |
Capital expenditure | 32,806 | 35,407 | 38,297 |
Reportable segment assets | 227,464 | 210,051 | |
Reportable segment liabilities | 170,946 | 159,955 | |
Airline transportation operations [member] | |||
Disclosure of operating segments [Line Items] | |||
Reportable segment revenue from external customers | 97,698 | 94,338 | 89,013 |
Inter-segment sales | 555 | ||
Reportable segment revenue | 97,698 | 94,338 | 89,568 |
Reportable segment profit before income tax | 6,517 | 5,788 | 5,327 |
Other segment information | |||
Depreciation and amortization | 13,769 | 12,378 | 10,727 |
Impairment charges | 489 | 22 | 93 |
Interest income | 2,309 | 100 | 69 |
Finance expenses | 3,080 | 2,553 | 1,935 |
Capital expenditure | 32,149 | 34,631 | 37,706 |
Reportable segment assets | 216,591 | 205,024 | |
Reportable segment liabilities | 165,148 | 159,437 | |
Other segments [member] | |||
Disclosure of operating segments [Line Items] | |||
Reportable segment revenue from external customers | 4,023 | 4,222 | 4,831 |
Inter-segment sales | 1,018 | 782 | 468 |
Reportable segment revenue | 5,041 | 5,004 | 5,299 |
Reportable segment profit before income tax | 363 | 397 | 238 |
Other segment information | |||
Depreciation and amortization | 190 | 160 | 128 |
Impairment charges | 2 | 7 | 1 |
Interest income | (96) | 100 | 13 |
Finance expenses | 205 | 280 | 270 |
Capital expenditure | 657 | 776 | 591 |
Reportable segment assets | 13,376 | 11,218 | |
Reportable segment liabilities | 11,301 | 9,373 | |
Eliminations [member] | |||
Disclosure of operating segments [Line Items] | |||
Inter-segment sales | (1,018) | (782) | (1,023) |
Reportable segment revenue | (1,018) | (782) | (1,023) |
Other segment information | |||
Interest income | (101) | (104) | (16) |
Finance expenses | (101) | (104) | (16) |
Reportable segment assets | (5,514) | (8,896) | |
Reportable segment liabilities | (5,514) | (8,896) | |
Unallocated [member] | |||
Disclosure of operating segments [Line Items] | |||
Reportable segment profit before income tax | 1,740 | 322 | 106 |
Other segment information | |||
Impairment charges | ¥ 134 | ||
Reportable segment assets | 3,011 | 2,705 | |
Reportable segment liabilities | ¥ 11 | ¥ 41 |
Segment Information - Summar112
Segment Information - Summary of Revenues by Geographical Area (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [Line Items] | |||
Revenue | ¥ 102,475 | ¥ 98,904 | ¥ 93,969 |
Domestic (the PRC, excluding Hong Kong, Macau and Taiwan) [Member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 67,923 | 63,730 | 61,222 |
Regional (Hong Kong, Macau and Taiwan) [Member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | 3,624 | 3,516 | 3,569 |
International [Member] | |||
Disclosure of geographical areas [Line Items] | |||
Revenue | ¥ 30,928 | ¥ 31,658 | ¥ 29,178 |
Segment Information - Summar113
Segment Information - Summary of Reconciliation of Reportable Segment Revenues, Profit, Assets and Liabilities (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [abstract] | |||
Reportable segment revenue | ¥ 101,721 | ¥ 98,560 | ¥ 93,844 |
- Reclassification of expired sales in advance of carriage | 754 | 344 | 125 |
Consolidated revenue | 102,475 | 98,904 | 93,969 |
Profit before income tax | |||
Consolidated profit before income tax | 8,620 | 6,507 | 5,671 |
- Differences in depreciation charges for aircraft and engines due to different depreciation lives | (10) | (10) | (4) |
Consolidated profit before income tax | 8,610 | 6,497 | ¥ 5,667 |
Assets | |||
Reportable segment assets | 227,464 | 210,051 | |
- Differences in depreciation charges for aircraft and engines due to different depreciation lives | 21 | 31 | |
- Difference in intangible asset arising from the acquisition of Shanghai Airlines | 2,242 | 2,242 | |
Consolidated assets | 229,727 | 212,324 | |
Liabilities | |||
Reportable segment liabilities | 170,946 | 159,955 | |
- Others | 3 | 3 | |
Consolidated liabilities | ¥ 170,949 | ¥ 159,958 |
(Loss)_Gain on Fair Value Ch114
(Loss)/Gain on Fair Value Changes of Derivative Financial Instruments - Summary of (Loss)/Gain on Fair Value Changes of Derivative Financial Instruments (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Fair Value Gains And Losses Of Derivative Financial Instruments [Line Items] | |||
Gains (Losses) on fair value changes of derivative financial instruments | ¥ (311) | ¥ 2 | ¥ 6 |
Interest rate swaps [member] | |||
Disclosure Of Fair Value Gains And Losses Of Derivative Financial Instruments [Line Items] | |||
Gains (Losses) on fair value changes of derivative financial instruments | ¥ 2 | ¥ 6 | |
Forward foreign exchange contracts [member] | |||
Disclosure Of Fair Value Gains And Losses Of Derivative Financial Instruments [Line Items] | |||
Gains (Losses) on fair value changes of derivative financial instruments | ¥ (311) |
Wages, Salaries and Benefits -
Wages, Salaries and Benefits - Summary of Wages, Salaries and Benefits (Detail) - CNY (¥) ¥ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of defined benefit plans [Line Items] | |||
Wages, salaries, bonus and allowances | ¥ 16,474,000 | ¥ 14,370,000 | ¥ 12,917,000 |
Employee welfare and benefits | 133,000 | 235,000 | 436,000 |
Pension | 1,987,000 | 1,769,000 | 1,479,000 |
Medical insurance | 663,000 | 606,000 | 563,000 |
Staff housing fund | 886,000 | 868,000 | 817,000 |
Staff housing allowances | 150,000 | 236,000 | 247,000 |
Early retirement benefits | 27,000 | 61,000 | |
Wages and salaries | 20,320,000 | 18,145,000 | 16,459,000 |
Salaries and allowances | 2,933 | 1,829 | 2,823 |
Bonus | 0 | 0 | 0 |
Total | 2,933 | 1,829 | 2,823 |
Executive directors [Member] | Liu Shaoyong [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | 0 |
Executive directors [Member] | Ma Xulun [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 401 | ||
Bonus | 0 | 0 | 0 |
Total | 401 | ||
Executive directors [Member] | Xu Zhao [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | 0 |
Executive directors [Member] | Gu Jiadan [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | 0 |
Executive directors [Member] | Li Yangmin [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 365 | ||
Bonus | 0 | 0 | 0 |
Total | 365 | ||
Executive directors [Member] | Tang Bing [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 358 | ||
Bonus | 0 | 0 | 0 |
Total | 358 | ||
Executive directors [Member] | Tian Liuwen [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 419 | ||
Bonus | 0 | 0 | 0 |
Total | 419 | ||
Independent Non-executive Directors [Member] | Liu Keya [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 72 | ||
Bonus | 0 | ||
Total | 72 | ||
Independent Non-executive Directors [Member] | Ji Weidong [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | |
Independent Non-executive Directors [Member] | Shao Ruiqing [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 200 | 160 | 60 |
Bonus | 0 | 0 | 0 |
Total | 200 | 160 | 60 |
Independent Non-executive Directors [Member] | Li Ruoshan [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 200 | 160 | 120 |
Bonus | 0 | 0 | 0 |
Total | 200 | 160 | 120 |
Independent Non-executive Directors [Member] | Ma Weihua [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 200 | 160 | 120 |
Bonus | 0 | 0 | 0 |
Total | 200 | 160 | 120 |
Independent Non-executive Directors [Member] | Cai Hongping [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 200 | 100 | |
Bonus | 0 | 0 | |
Total | 200 | 100 | |
Supervisors [Member] | Yu Faming [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | |
Supervisors [Member] | Xi Sheng [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | 0 |
Supervisors [Member] | Xu Haihua [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 288 | 298 | |
Bonus | 0 | 0 | |
Total | 288 | 298 | |
Supervisors [Member] | Feng Jinxiong [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 584 | 535 | 610 |
Bonus | 0 | 0 | 0 |
Total | 584 | 535 | 610 |
Supervisors [Member] | Ba Shengji [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | 0 | 0 | ¥ 0 |
Supervisors [Member] | Hu Jidong [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Salaries and allowances | 1,549 | 426 | |
Bonus | 0 | 0 | |
Total | 1,549 | 426 | |
Supervisors [Member] | Jia Shaojun [Member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Bonus | ¥ 0 | ¥ 0 |
Wages, Salaries and Benefits116
Wages, Salaries and Benefits - Summary of Wages, Salaries and Benefits (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Classes of employee benefits expense [abstract] | |
Vested period on entitlement of an eligible employee | 20 years |
Wages, Salaries and Benefits117
Wages, Salaries and Benefits - Summary of Five Highest Paid Individuals (Detail) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017CNY (¥)Individual | Dec. 31, 2016CNY (¥)Individual | Dec. 31, 2015CNY (¥)Individual | |
Disclosure of individuals with highest emoluments [Line Items] | |||
Wages, salaries, bonus and allowances | ¥ | ¥ 16,474 | ¥ 14,370 | ¥ 12,917 |
Five Highest Paid Individuals [Member] | |||
Disclosure of individuals with highest emoluments [Line Items] | |||
Wages, salaries, bonus and allowances | ¥ | ¥ 8,702 | ¥ 9,319 | ¥ 8,104 |
Number of individuals | 5 | 5 | 5 |
Five Highest Paid Individuals [Member] | HK$1,500,001 to HK$2,000,000 [Member] | |||
Disclosure of individuals with highest emoluments [Line Items] | |||
Number of individuals | 5 | ||
Five Highest Paid Individuals [Member] | HK$2,000,001 to HK$2,500,000 [Member] | |||
Disclosure of individuals with highest emoluments [Line Items] | |||
Number of individuals | 5 | 5 |
Wages, Salaries and Benefits118
Wages, Salaries and Benefits - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Directors, supervisors and five highest paid individuals [member] | |||
Disclosure of defined benefit plans [Line Items] | |||
Emoluments paid by the Group | ¥ 0 | ¥ 0 | ¥ 0 |
Impairment Charges - Summary of
Impairment Charges - Summary of Impairment Charges (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of impairment loss and reversal of impairment loss [Line Items] | |||
Write-down of flight equipment spare parts to net realisable value | ¥ 112 | ¥ 10 | ¥ 88 |
Impairment charge on property, plant and equipment | 379 | 29 | 48 |
Impairment charge on available-for-sale investments | 100 | ||
Accrual/(reversal) of impairment charge on trade receivables | (3) | (1) | 12 |
Reversal of impairment charge on other receivables | (9) | (53) | |
Impairment charges | 491 | ¥ 29 | 228 |
Assets disposal of a group classified as held for sale [member] | |||
Disclosure of impairment loss and reversal of impairment loss [Line Items] | |||
Impairment charge on assets of a disposal group classified as held for sale | ¥ 3 | ¥ 33 |
Operating Profit - Summary of O
Operating Profit - Summary of Operating Profit (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Amortization of intangible assets | ¥ 142 | ¥ 129 | ¥ 85 |
Depreciation of property, plant and equipment, owned | 7,065 | 6,388 | 5,350 |
Depreciation of property, plant and equipment, leased (finance leases) | 6,302 | 5,563 | 4,972 |
Depreciation of investment properties | 12 | 11 | 4 |
Amortization of long-term deferred assets included in other non-current assets | 402 | 394 | 388 |
Amortization of prepayments for land use right | 45 | 63 | 60 |
Consumption of flight equipment spare parts | 1,131 | 1,198 | 974 |
Auditors' remuneration | 19 | 18 | 17 |
Subsidy income | (4,941) | ¥ (4,531) | (4,131) |
Gain on disposal of a subsidiary | ¥ (1,754) | ¥ (41) |
Finance Income - Summary of Fin
Finance Income - Summary of Finance Income (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest income | ¥ 111 | ¥ 96 | ¥ 66 |
Foreign exchange difference, net | 2,001 | ||
Interest income | ¥ 2,112 | ¥ 96 | ¥ 66 |
Finance Costs - Summary of Fina
Finance Costs - Summary of Finance Costs (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Interest on bank borrowings | ¥ 1,590 | ¥ 1,529 | ¥ 1,613 |
Interest relating to obligations under finance leases | 1,845 | 1,349 | 867 |
Interest relating to post-retirement benefit obligations | 98 | 88 | 114 |
Interest on bonds and debentures | 381 | 359 | 483 |
Interest relating to interest rate swap contracts | 63 | 122 | 128 |
Less: amount capitalized into advanced payments on acquisition of aircraft | (793) | (749) | (1,014) |
Amounts capitalized into construction in progress | (2) | ||
Interest expense | 3,184 | 2,698 | 2,189 |
Foreign exchange difference, net | 3,574 | 4,987 | |
Finance costs | ¥ 3,184 | ¥ 6,272 | ¥ 7,176 |
Finance Costs - Summary of F123
Finance Costs - Summary of Finance Costs (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
Average interest rate used for interest capitalization | 3.40% | 3.25% | 3.09% |
Income Tax Expense - Summary of
Income Tax Expense - Summary of Income Tax Charged to Profit or Loss (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major components of tax expense (income) [abstract] | |||
Income tax | ¥ 1,962 | ¥ 1,396 | ¥ 737 |
Deferred taxation | (162) | 146 | (113) |
Income tax expense | ¥ 1,800 | ¥ 1,542 | ¥ 624 |
Income Tax Expense - Additional
Income Tax Expense - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of income taxes [Line Items] | |||
Income tax rate | 25.00% | 25.00% | 25.00% |
Sichuan Branch [member] | |||
Disclosure of income taxes [Line Items] | |||
Income tax rate | 15.00% | ||
Gansu Branch [member] | |||
Disclosure of income taxes [Line Items] | |||
Income tax rate | 15.00% | ||
Xibei Branch [member] | |||
Disclosure of income taxes [Line Items] | |||
Income tax rate | 15.00% | ||
Hong Kong [member] | |||
Disclosure of income taxes [Line Items] | |||
Income tax rate | 16.50% | 16.50% | 16.50% |
China Eastern Airlines Yunnan Co., Ltd. [member] | |||
Disclosure of income taxes [Line Items] | |||
Income tax rate | 15.00% |
Income Tax Expense - Summary126
Income Tax Expense - Summary of the Reconciliation of Statutory Tax Rates to Effective Tax Rate (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Profit before income tax | ¥ 8,610 | ¥ 6,497 | ¥ 5,667 |
Tax calculated at the tax rate of 25% (2016: 25%, 2015: 25%) | 2,152 | 1,624 | 1,417 |
Lower tax rates enacted by local authority | (87) | (102) | (156) |
Share of results of associates and joint ventures | (63) | (37) | (38) |
Income not subject to tax | (13) | (10) | |
Expenses not deductible for tax | 38 | 117 | 104 |
Utilization of previously unrecognized tax losses | (253) | (51) | (1) |
Unrecognized tax losses for the year | 48 | 13 | 20 |
Utilization of deductible temporary differences | (13) | (10) | (686) |
Unrecognized deductible temporary differences | 2 | 6 | (36) |
Research and development costs' super deduction | (11) | (8) | |
Income tax expense | ¥ 1,800 | ¥ 1,542 | ¥ 624 |
Effective tax rate | 20.91% | 23.73% | 11.01% |
Income Tax Expense - Summary127
Income Tax Expense - Summary of the Reconciliation of Statutory Tax Rates to Effective Tax Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | |||
Tax rate | 25.00% | 25.00% | 25.00% |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Profit attributable to equity holders of the Company | ¥ 6,342 | ¥ 4,498 | ¥ 4,537 |
Weighted average number of shares | 14,467,585,682 | 13,811,136,000 | 12,818,509,000 |
Potentially dilutive options | 0 | 0 | 0 |
Potentially dilutive other instruments | 0 | 0 | 0 |
Held for Sale Assets and Lia129
Held for Sale Assets and Liabilities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Disclosure of assets and liabilities classified as held for sale [line items] | |
Cash consideration | ¥ (2,433,000,000) |
Shanghai Airlines Hotel [member] | |
Disclosure of assets and liabilities classified as held for sale [line items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Cash consideration | ¥ 7,100 |
Inter-company payable | ¥ 6,000,000 |
Held for Sale Assets and Lia130
Held for Sale Assets and Liabilities - Summary of Major Classes of Assets and Liabilities Classified as Held for Sale (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Property, plant and equipment | ¥ 166,856 | ¥ 153,180 | ¥ 133,242 |
Other non-currentassets | 2,927 | 2,969 | |
Trade and notes receivables | 2,124 | 2,660 | |
Cash and cash equivalents | 4,605 | ¥ 1,695 | |
Assets classified as held for sale | 14 | ||
Liabilities directly associated with the assets classified as held for sale | (8) | ||
Hose Limited [member] | Assets and liabilities classified as held for sale [member] | |||
Disclosure of assets and liabilities classified as held for sale [line items] | |||
Property, plant and equipment | 2 | ||
Other non-currentassets | 1 | ||
Trade and notes receivables | 2 | ||
Cash and cash equivalents | 11 | ||
Inventory | 1 | ||
Subtotal of assets | 17 | ||
Provision for impairment of assets classified as held for sale | (3) | ||
Assets classified as held for sale | 14 | ||
Trade and bills payables | (2) | ||
Other payables and accruals | (6) | ||
Liabilities directly associated with the assets classified as held for sale | (8) | ||
Net assets directly associated with the disposal group | ¥ 6 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | ¥ 11,624 | ¥ 11,522 | |
Additions | 126 | 222 | |
Transfer from construction in process | 3 | 9 | |
Amortization provided during the year | (142) | (129) | ¥ (85) |
Disposal of a subsidiary | (14) | ||
Disposals | (1) | ||
Ending balance | 11,596 | 11,624 | 11,522 |
Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 12,180 | ||
Ending balance | 12,272 | 12,180 | |
Accumulated depreciation and amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | (556) | ||
Ending balance | (676) | (556) | |
Goodwill [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 11,270 | 11,270 | |
Ending balance | 11,270 | 11,270 | 11,270 |
Goodwill [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 11,270 | ||
Ending balance | 11,270 | 11,270 | |
Computer software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 288 | 252 | |
Additions | 126 | 124 | |
Transfer from construction in process | 3 | 9 | |
Amortization provided during the year | (109) | (97) | |
Disposal of a subsidiary | (14) | ||
Disposals | (1) | ||
Ending balance | 293 | 288 | ¥ 252 |
Computer software [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 812 | ||
Ending balance | 904 | 812 | |
Computer software [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | (524) | ||
Ending balance | (611) | (524) | |
Others [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 66 | ||
Additions | 98 | ||
Amortization provided during the year | (33) | (32) | |
Ending balance | 33 | 66 | |
Others [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | 98 | ||
Ending balance | 98 | 98 | |
Others [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line items] | |||
Beginning balance | (32) | ||
Ending balance | ¥ (65) | ¥ (32) |
Intangible Assets - Summary 132
Intangible Assets - Summary of Intangible Assets (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of reconciliation of changes in intangible assets and goodwill [abstract] | ||
Discount rate applied to the cash flow projections | 11.00% | 11.00% |
Growth rate used to extrapolate the cash flows | 3.00% | 3.00% |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | ¥ 153,180 | ¥ 133,242 | |
Additions | 15,708 | 16,029 | |
Disposals | (1,024) | (615) | |
Transfer from advanced payments on acquisition of aircraft (note 21) | 15,079 | 16,590 | |
Transfer from investment properties (note 19) | 9 | (38) | |
Transfer to investment properties (note 19) | (2) | ||
Assets included in held for sale | (2) | ||
Transfer to other non-current assets | (327) | (48) | |
Depreciation provided during the year | (13,367) | (11,951) | |
Disposal of a subsidiary (note 43) | (2,019) | ||
Impairment | (379) | (29) | ¥ (48) |
Accumulated depreciation and impairment | 166,856 | 153,180 | 133,242 |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 215,640 | 186,798 | |
Accumulated depreciation and impairment | 237,546 | 215,640 | 186,798 |
Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | (62,460) | (53,556) | |
Accumulated depreciation and impairment | (70,690) | (62,460) | (53,556) |
Aircrafts, engines and flight equipment, owned [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 64,739 | 51,845 | |
Additions | 3,659 | 9,411 | |
Disposals | (656) | (324) | |
Transfer from advanced payments on acquisition of aircraft (note 21) | 1,701 | 12,236 | |
Depreciation provided during the year | (6,154) | (5,561) | |
Disposal of a subsidiary (note 43) | (199) | ||
Impairment | (379) | (29) | (48) |
Transfers | 6,283 | (2,839) | |
Accumulated depreciation and impairment | 68,994 | 64,739 | 51,845 |
Aircrafts, engines and flight equipment, owned [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 99,653 | 80,402 | |
Accumulated depreciation and impairment | 111,297 | 99,653 | 80,402 |
Aircrafts, engines and flight equipment, owned [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | (34,914) | (28,557) | |
Accumulated depreciation and impairment | (42,303) | (34,914) | (28,557) |
Aircrafts, engines and flight equipment, held under finance leases [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 77,174 | 71,117 | |
Additions | 8,277 | 4,485 | |
Disposals | (264) | (58) | |
Transfer from advanced payments on acquisition of aircraft (note 21) | 13,378 | 4,354 | |
Depreciation provided during the year | (6,302) | (5,563) | |
Disposal of a subsidiary (note 43) | (1,220) | ||
Transfers | (6,283) | 2,839 | |
Accumulated depreciation and impairment | 84,760 | 77,174 | 71,117 |
Aircrafts, engines and flight equipment, held under finance leases [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 97,064 | 89,146 | |
Accumulated depreciation and impairment | 105,801 | 97,064 | 89,146 |
Aircrafts, engines and flight equipment, held under finance leases [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | (19,890) | (18,029) | |
Accumulated depreciation and impairment | (21,041) | (19,890) | (18,029) |
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 5,874 | 5,727 | |
Additions | 276 | 5 | |
Disposals | (1) | (21) | |
Transfer from construction in progress | 1,019 | 474 | |
Transfer from investment properties (note 19) | 9 | (38) | |
Transfer to investment properties (note 19) | (2) | ||
Depreciation provided during the year | (298) | (273) | |
Disposal of a subsidiary (note 43) | (375) | ||
Transfers | (24) | ||
Accumulated depreciation and impairment | 6,478 | 5,874 | 5,727 |
Buildings [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 8,324 | 7,993 | |
Accumulated depreciation and impairment | 8,809 | 8,324 | 7,993 |
Buildings [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | (2,450) | (2,266) | |
Accumulated depreciation and impairment | (2,331) | (2,450) | (2,266) |
Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,995 | 2,782 | |
Additions | 808 | 651 | |
Disposals | (103) | (212) | |
Transfer from construction in progress | 18 | 328 | |
Assets included in held for sale | (2) | ||
Depreciation provided during the year | (613) | (554) | |
Disposal of a subsidiary (note 43) | (208) | ||
Transfers | 24 | ||
Accumulated depreciation and impairment | 2,919 | 2,995 | 2,782 |
Other property, plant and equipment [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 8,201 | 7,486 | |
Accumulated depreciation and impairment | 7,934 | 8,201 | 7,486 |
Other property, plant and equipment [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | (5,206) | (4,704) | |
Accumulated depreciation and impairment | (5,015) | (5,206) | (4,704) |
Construction in progress [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,398 | 1,771 | |
Additions | 2,688 | 1,477 | |
Transfer from construction in progress | (1,037) | (802) | |
Transfer to other non-current assets | (327) | (48) | |
Disposal of a subsidiary (note 43) | (17) | ||
Accumulated depreciation and impairment | 3,705 | 2,398 | 1,771 |
Construction in progress [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Beginning balance | 2,398 | 1,771 | |
Accumulated depreciation and impairment | ¥ 3,705 | ¥ 2,398 | ¥ 1,771 |
Property, Plant and Equipmen134
Property, Plant and Equipment - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss | ¥ 379 | ¥ 29 | ¥ 48 |
Certain aircraft and buildings owned by the Group were pledged as collateral under certain loan arrangements | 11,207 | 17,559 | |
Property, plant and equipment where ownership certificates have not obtained | 1,397 | 1,455 | |
Aircrafts, engines and flight equipment, owned [member] | |||
Disclosure of detailed information about property, plant and equipment [Line Items] | |||
Impairment loss | ¥ 379 | ¥ 29 | ¥ 48 |
Investment Properties - Summary
Investment Properties - Summary of Investment Properties (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about investment property [Line Items] | |||
Beginning balance | ¥ 321 | ||
Charge for the year (note 11) | (12) | ¥ (11) | ¥ (4) |
Ending balance | 302 | 321 | |
Cost [member] | |||
Disclosure of detailed information about investment property [Line Items] | |||
Beginning balance | 402 | 344 | |
Transfer from property, plant and equipment (note 18) | 4 | 58 | |
Transfer to property, plant and equipment (note 18) | 14 | ||
Ending balance | 392 | 402 | 344 |
Accumulated depreciation and amortization [member] | |||
Disclosure of detailed information about investment property [Line Items] | |||
Beginning balance | (81) | (50) | |
Transfer from property, plant and equipment (note 18) | (2) | (20) | |
Transfer to property, plant and equipment (note 18) | (5) | ||
Charge for the year (note 11) | 12 | 11 | |
Ending balance | ¥ (90) | ¥ (81) | ¥ (50) |
Investment Properties - Additio
Investment Properties - Additional Information (Detail) - CNY (¥) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about investment property [Line Items] | |||
Fair value of the investment properties | ¥ 302,000,000 | ¥ 321,000,000 | |
Rental income | 39,000,000 | 37,000,000 | ¥ 30,000,000 |
The amount of investment properties subject to restrictions on title | 112,000,000 | 119,000,000 | |
Investment properties [member] | |||
Disclosure of detailed information about investment property [Line Items] | |||
Transfers of fair value measurements from level 1 to level 2 | 0 | 0 | |
Transfers of fair value measurements from level 2 to level 1 | 0 | 0 | |
Transfers of fair value measurements into level 3 | 0 | 0 | |
Transfers of fair value measurements out of level 3 | 0 | 0 | |
Not measured at fair value but for which fair values are disclosed [member] | |||
Disclosure of detailed information about investment property [Line Items] | |||
Fair value of the investment properties | ¥ 628,000,000 | ¥ 604,000,000 |
Investment Properties - Summ137
Investment Properties - Summary of Fair Value Measurement Hierarchy of Investment Properties (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about investment property [Line Items] | ||
Buildings | ¥ 302 | ¥ 321 |
Not measured at fair value but for which fair values are disclosed [member] | ||
Disclosure of detailed information about investment property [Line Items] | ||
Buildings | 628 | 604 |
Not measured at fair value but for which fair values are disclosed [member] | Significant observable inputs (Level 2) [member] | ||
Disclosure of detailed information about investment property [Line Items] | ||
Buildings | 198 | 183 |
Not measured at fair value but for which fair values are disclosed [member] | Significant unobservable inputs (Level 3) [member] | ||
Disclosure of detailed information about investment property [Line Items] | ||
Buildings | ¥ 430 | ¥ 421 |
Prepayments for Land Use Rig138
Prepayments for Land Use Right - Summary of Prepayments for Land Use Right (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of finance lease and operating lease by lessee [abstract] | ||
Carrying amount at 1 January | ¥ 2,064 | ¥ 2,094 |
Recognized during the year | (347) | (30) |
Carrying amount at 31 December | ¥ 1,717 | ¥ 2,064 |
Advanced Payments on Acquisi139
Advanced Payments on Acquisition of Aircraft - Summary of Advanced Payments on Acquisition of Aircraft (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
At 1 January | ¥ 23,357 | ¥ 21,207 |
Additions | 15,681 | 17,991 |
Interest capitalized (note 13) | 793 | 749 |
Transfer to property, plant and equipment (note 18) | (15,079) | (16,590) |
At 31 December | ¥ 24,752 | ¥ 23,357 |
Investments in Associates - Sum
Investments in Associates - Summary of Investments in Associates (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of associates [abstract] | |||
Unlisted investments, cost | ¥ 1,116 | ¥ 1,069 | |
Share of net assets | 538 | 467 | |
Investments in associates | ¥ 1,654 | ¥ 1,536 | ¥ 1,543 |
Investments in Associates - 141
Investments in Associates - Summary of Movements in Investments in Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [abstract] | |||
At 1 January | ¥ 1,536 | ¥ 1,543 | |
Additions | 47 | ||
Share of results of associates | 202 | 148 | ¥ 126 |
Share of revaluation on available-for-sale investments held by an associate | 10 | (1) | 7 |
Dividend received during the year | (141) | (154) | |
At 31 December | ¥ 1,654 | ¥ 1,536 | ¥ 1,543 |
Investments in Associates - 142
Investments in Associates - Summary of Principal Associates (Detail) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of associates [Line Items] | ||||
Registered capital | ¥ 14,467 | ¥ 14,467 | ||
Eastern Air Group Finance Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Dec. 6, 1995 | |||
Registered capital | ¥ 2,000 | ¥ 2,000 | ||
Attributable equity interest | 25.00% | 25.00% | ||
Principal activities | Provision of financial services to group companies of CEA Holding | |||
China Eastern Air Catering Investment Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Nov. 17, 2003 | |||
Registered capital | ¥ 350 | ¥ 350 | ||
Attributable equity interest | 45.00% | 45.00% | ||
Principal activities | Provision of air catering services | |||
Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Mar. 28, 2008 | |||
Registered capital | $ | $ 40 | $ 40 | ||
Attributable equity interest | 51.00% | 51.00% | ||
Principal activities | Provision of aircraft, engine and other related components maintenance services | |||
New Shanghai International Tower Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Nov. 17, 1992 | |||
Registered capital | ¥ 167 | ¥ 167 | ||
Attributable equity interest | 20.00% | 20.00% | ||
Principal activities | Property development provision and management services | |||
Eastern Aviation Import & Export Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Jun. 9, 1993 | |||
Registered capital | ¥ 80 | ¥ 80 | ||
Attributable equity interest | 45.00% | 45.00% | ||
Principal activities | Provision of aviation equipment and spare parts purchase | |||
Eastern Aviation Advertising Service Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Mar. 4, 1986 | |||
Registered capital | ¥ 200 | ¥ 200 | ||
Attributable equity interest | 45.00% | 45.00% | ||
Principal activities | Provision of aviation advertising agency services | |||
Shanghai Collins Aviation Maintenance Service Co., Ltd. [member] | ||||
Disclosure of associates [Line Items] | ||||
Place of establishment and operation | PRC/Mainland China | |||
Date of establishment | Sep. 27, 2002 | |||
Registered capital | $ | $ 7 | $ 7 | ||
Attributable equity interest | 35.00% | 35.00% | ||
Principal activities | Provision of airline electronic product maintenance services |
Investments in Associates - Add
Investments in Associates - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. [member] | ||
Disclosure of associates [Line Items] | ||
Ownership interest | 51.00% | 51.00% |
Investments in Associates - 144
Investments in Associates - Summary of Aggregate Financial Information of Associates (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of associates [Line Items] | |||
Share of the associates' profit for the year | ¥ 202 | ¥ 148 | ¥ 126 |
Aggregate carrying amount of the Group's interests in the associates | 1,654 | 1,536 | ¥ 1,543 |
Associates [member] | |||
Disclosure of associates [Line Items] | |||
Share of the associates' other comprehensive income | 10 | (1) | |
Share of the associates' total comprehensive income | ¥ 212 | ¥ 147 |
Investments in Joint Ventures -
Investments in Joint Ventures - Summary of Investments in Joint Ventures (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of joint ventures [abstract] | |||
Unlisted investments, cost | ¥ 369 | ¥ 352 | |
Share of net assets | 188 | 172 | |
Investments in joint ventures | ¥ 557 | ¥ 524 | ¥ 518 |
Investments in Joint Venture146
Investments in Joint Ventures - Summary of Movements in Investments in Joint Ventures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures [abstract] | |||
Beginning balance | ¥ 524 | ¥ 518 | |
Additions | 17 | ||
Share of results | 49 | 39 | ¥ 26 |
Dividend received during the year | (33) | (33) | |
Ending balance | ¥ 557 | ¥ 524 | ¥ 518 |
Investments in Joint Venture147
Investments in Joint Ventures - Summary of Principal Joint Ventures (Detail) ¥ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2017AUD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016AUD ($) | |
Disclosure of joint ventures [Line Items] | ||||||
Paid-up capital | ¥ | ¥ 14,467 | ¥ 14,467 | ||||
Shanghai Technologies Aerospace Co., Ltd. [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | PRC/Mainland China | |||||
Date of establishment | Sep. 28, 2004 | |||||
Paid-up capital | $ 73 | $ 73 | ||||
Attributable equity interest | 51.00% | 51.00% | ||||
Principal activities | Provision of repair and maintenance services | |||||
Shanghai Eastern Union Aviation Wheels & Brakes Maintenance Services Overhaul Engineering Co., Ltd. [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | PRC/Mainland China | |||||
Date of establishment | Dec. 28, 1995 | |||||
Paid-up capital | 2 | $ 2 | ||||
Attributable equity interest | 40.00% | 40.00% | ||||
Principal activities | Provision of spare parts repair and maintenance services | |||||
Eastern China Kaiya System Integration Co., Ltd. [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | PRC/Mainland China | |||||
Date of establishment | May 21, 1999 | |||||
Paid-up capital | ¥ | ¥ 10 | ¥ 10 | ||||
Attributable equity interest | 41.00% | 41.00% | ||||
Principal activities | Provision of computer systems development and maintenance services | |||||
CAE Melbourne Flight Training Pty Ltd. [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | Australia | |||||
Date of establishment | Mar. 9, 2007 | |||||
Paid-up capital | $ 11 | $ 11 | ||||
Attributable equity interest | 50.00% | 50.00% | ||||
Principal activities | Provision of flight training services | |||||
Shanghai Hute Aviation Technology Co., Ltd. [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | PRC/Mainland China | |||||
Date of establishment | Apr. 9, 2003 | |||||
Paid-up capital | ¥ | ¥ 30 | ¥ 30 | ||||
Attributable equity interest | 50.00% | 50.00% | ||||
Principal activities | Provision of equipment maintenance services | |||||
Xi'an CEA SAFRAN Landing Systems Services Co., Ltd [member] | ||||||
Disclosure of joint ventures [Line Items] | ||||||
Place of establishment and operation | PRC/Mainland China | |||||
Date of establishment | Jul. 12, 2017 | |||||
Paid-up capital | $ 40 | |||||
Attributable equity interest | 50.00% | |||||
Principal activities | Provision of aircraft, engine and other related components maintenance services |
Investments in Joint Venture148
Investments in Joint Ventures - Summary of Aggregate Financial Information of Joint Ventures (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures [Line Items] | |||
Share of the joint ventures' profit for the year | ¥ 49 | ¥ 39 | ¥ 26 |
Aggregate carrying amount of the Group's interests in the joint ventures | 557 | 524 | ¥ 518 |
Joint ventures [member] | |||
Disclosure of joint ventures [Line Items] | |||
Share of the joint ventures' total comprehensive income | ¥ 49 | ¥ 39 |
Available-for-sale Investmen149
Available-for-sale Investments - Summary of Available-for-sale Investments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [Line Items] | ||
Available-for-sale investments | ¥ 800 | ¥ 645 |
Listed equity investments, at fair value [member] | ||
Disclosure of financial assets [Line Items] | ||
Available-for-sale investments | 693 | 538 |
Unlisted equity investments, at cost [member] | ||
Disclosure of financial assets [Line Items] | ||
Available-for-sale investments | ¥ 107 | ¥ 107 |
Available-for-sale Investmen150
Available-for-sale Investments - Additional Information (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of financial assets [abstract] | ||
Gain on available-for-sale investments recognised in other comprehensive income | ¥ 156 | ¥ 100 |
Other Non-current Assets - Summ
Other Non-current Assets - Summary of Other Non-current Assets (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Miscellaneous non-current assets [abstract] | ||
Deposits relating to aircraft held under operating leases | ¥ 217 | ¥ 285 |
Deferred pilot recruitment costs | 1,288 | 1,182 |
Rebate receivables on aircraft acquisitions | 65 | 83 |
Rental prepayment | 426 | |
Prepayment for acquisition of property, plant and equipment | 681 | 299 |
Other long term assets | 676 | 694 |
Other non-current assets | ¥ 2,927 | ¥ 2,969 |
Flight Equipment Spare Parts -
Flight Equipment Spare Parts - Summary of Flight Equipment Spare Parts (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of inventories [Line Items] | ||
Flight equipment spare parts | ¥ 2,185 | ¥ 2,248 |
Flight equipment spare parts [member] | ||
Disclosure of inventories [Line Items] | ||
Flight equipment spare parts | 2,185 | 2,248 |
Flight equipment spare parts [member] | Cost [member] | ||
Disclosure of inventories [Line Items] | ||
Flight equipment spare parts | 2,716 | 2,713 |
Flight equipment spare parts [member] | Impairment [member] | ||
Disclosure of inventories [Line Items] | ||
Flight equipment spare parts | ¥ (531) | ¥ (465) |
Flight Equipment Spare Parts153
Flight Equipment Spare Parts - Summary of Movements in Provision for Impairment of Flight Equipment Spare Parts (Detail) - Provision written off in relation to disposal of spare parts [member] - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of inventories [Line Items] | ||
Beginning balance | ¥ 465 | ¥ 541 |
Accrual (note 10) | 112 | 10 |
Amount written off in relation to disposal of spare parts | (1) | (86) |
Disposal of a subsidiary | (45) | |
Ending balance | ¥ 531 | ¥ 465 |
Trade and Notes Receivables - S
Trade and Notes Receivables - Summary of Trade and Notes Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other current receivables [abstract] | ||
Trade receivables | ¥ 2,124 | ¥ 2,630 |
Notes receivable | 30 | |
Trade and notes receivables | ¥ 2,124 | ¥ 2,660 |
Trade and Notes Receivables 155
Trade and Notes Receivables - Summary of Ageing Analysis of Trade and Notes Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | ¥ 2,124 | ¥ 2,660 |
Cost [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | 2,212 | 2,775 |
Cost [member] | Within 90 days [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | 1,912 | 2,324 |
Cost [member] | 91 to 180 days [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | 38 | 167 |
Cost [member] | 181 to 365 days [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | 100 | 102 |
Cost [member] | Over 365 days [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | 162 | 182 |
Impairment [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivables | ¥ (88) | ¥ (115) |
Trade and Notes Receivables - A
Trade and Notes Receivables - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [Line Items] | ||
Trade and notes receivable | ¥ 2,124 | ¥ 2,660 |
Individually impaired trade receivables | 2,124 | 2,630 |
Provision relate to impaired trade and notes receivables | 42 | |
Impaired trade and receivables only a portion of the receivables is expected to be recovered | 123 | |
Impairment [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivable | (88) | (115) |
Cost [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivable | 2,212 | 2,775 |
Past due but not impaired [member] | ||
Disclosure of financial assets [Line Items] | ||
Trade and notes receivable | 131 | 267 |
Individually impaired [member] | Impairment [member] | ||
Disclosure of financial assets [Line Items] | ||
Individually impaired trade receivables | 46 | 66 |
Individually impaired [member] | Cost [member] | ||
Disclosure of financial assets [Line Items] | ||
Individually impaired trade receivables | ¥ 46 | ¥ 66 |
Trade and Notes Receivables 157
Trade and Notes Receivables - Summary of Ageing Analysis of Trade and Notes Receivables Past Due But Not Impaired (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Trade and notes receivables | ¥ 2,124 | ¥ 2,660 |
Past due but not impaired [member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Trade and notes receivables | 131 | 267 |
Past due but not impaired [member] | Within 90 days [member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Trade and notes receivables | 38 | 167 |
Past due but not impaired [member] | 91 to 180 days [member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Trade and notes receivables | ¥ 93 | 30 |
Past due but not impaired [member] | 181 to 365 days [member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Trade and notes receivables | ¥ 70 |
Trade and Notes Receivables 158
Trade and Notes Receivables - Summary of Provision for Impairment of Trade and Notes Receivables (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial assets [Line Items] | |||
Impairment losses reversed (note 10) | ¥ (3) | ¥ (1) | ¥ 12 |
Trade and notes receivables [member] | |||
Disclosure of financial assets [Line Items] | |||
Beginning balance | 115 | 216 | |
Impairment losses recognized (note 10) | 6 | 8 | |
Amount written off during the year as uncollectible | (13) | (100) | |
Impairment losses reversed (note 10) | (9) | (9) | |
Disposal of subsidiary | (5) | ||
Provision included in held for sale | (6) | ||
Ending balance | ¥ 88 | ¥ 115 | ¥ 216 |
Prepayments and Other Receiv159
Prepayments and Other Receivables - Summary of Prepayments and Other Receivables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets [Line Items] | ||
Prepayments and other receivables | ¥ 9,314 | ¥ 9,231 |
Cost [member] | ||
Disclosure of financial assets [Line Items] | ||
Value added tax recoverable | 3,662 | 1,746 |
Value added tax refundable | 1,387 | 615 |
Subsidy receivable | 1,450 | 762 |
Prepaid corporate income tax | 139 | 283 |
Advance to suppliers | 218 | 2,327 |
Prepaid aircraft operating lease rentals | 319 | 382 |
Dividend receivable | 183 | |
Rebate receivables on aircraft acquisitions | 944 | 1,489 |
Rental deposits | 200 | 233 |
Amounts due from related parties (note 47(c)(i)) | 569 | 616 |
Deposits relating to aircraft held under operating leases | 76 | 140 |
Others | 365 | 838 |
Prepayments and other receivables | 9,512 | 9,431 |
Impairment [member] | ||
Disclosure of financial assets [Line Items] | ||
Prepayments and other receivables | ¥ (198) | ¥ (200) |
Restricted Bank Deposits and160
Restricted Bank Deposits and Short-term Bank Deposits - Summary of Restricted Bank Deposits and Short-term Bank Deposits (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Bank deposits with original maturity over a year | ¥ 3 | |
Restricted bank deposits | ¥ 51 | 40 |
Restricted bank deposits and short-term bank deposits | ¥ 51 | ¥ 43 |
Cash and Cash Equivalents - Sum
Cash and Cash Equivalents - Summary of Cash and Cash Equivalents (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents [abstract] | ||
Cash | ¥ 2 | ¥ 3 |
Bank balances | 4,603 | 1,692 |
Cash and cash equivalents | ¥ 4,605 | ¥ 1,695 |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Cash and bank balances | ¥ 4,605 | ¥ 1,695 |
RMB [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Cash and bank balances | ¥ 3,239 | ¥ 814 |
Trade and Bills Payables - Summ
Trade and Bills Payables - Summary of Aged Analysis of Trade and Bills Payables (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | ¥ 3,184 | ¥ 3,376 |
Within 90 days [member] | ||
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | 2,791 | 2,994 |
91 to 180 days [member] | ||
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | 59 | 57 |
181 to 365 days [member] | ||
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | 161 | 83 |
1 to 2 years [member] | ||
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | 71 | 77 |
Over 2 years [member] | ||
Disclosure of financial liabilities [Line Items] | ||
Trade and bills payable | ¥ 102 | ¥ 165 |
Trade and Bills Payables - Addi
Trade and Bills Payables - Additional Information (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other payables [abstract] | ||
Trade and bills payable due to related parties | ¥ 241 | ¥ 232 |
Bills payable | ¥ 1,173 | ¥ 1,120 |
Other Payables and Accruals - S
Other Payables and Accruals - Summary of Other Payables and Accruals (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other payables [abstract] | ||
Salaries, wages and benefits | ¥ 2,711 | ¥ 3,662 |
Take-off and landing charges | 2,707 | 2,323 |
Fuel cost | 1,369 | 1,774 |
Expenses related to aircraft overhaul conducted | 1,760 | 1,253 |
Advance from customers | 1,342 | 966 |
Duties and levies payable | 1,483 | 1,507 |
Other accrued operating expenses | 1,848 | 1,561 |
Deposits received from ticket sales agents | 549 | 764 |
Current portion of other long-term liabilities (note 36) | 1,038 | 635 |
Staff housing allowance | 323 | 363 |
Amounts due to related parties (note 47(c)(ii)) | 2,111 | 2,534 |
Current portion of post-retirement benefit obligations (note 37(b)) | 168 | 173 |
Others | 2,455 | 2,735 |
Other payables and accruals | ¥ 19,864 | ¥ 20,250 |
Obligations Under Finance Le166
Obligations Under Finance Leases - Additional Information (Detail) - Aircraft | Dec. 31, 2017 | Dec. 31, 2016 |
Aircrafts, engines and flight equipment, held under finance leases [member] | ||
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Number of aircrafts | 235 | 226 |
Obligations Under Finance Le167
Obligations Under Finance Leases - Summary of Future Minimum Lease Payments (Including Interest), and Present Value of Minimum Lease Payments Under Finance Leases (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Minimum lease payments | ¥ 80,105 | ¥ 70,831 |
Minimum lease payments, Less: amount repayable within one year | (11,651) | (8,123) |
Minimum lease payments, long-term portion | 68,454 | 62,708 |
Present values of minimum lease payments | 66,868 | 61,041 |
Present values of minimum lease payments, Less: amount repayable within one year | (9,241) | (6,447) |
Present values of minimum lease payments, long-term portion | 57,627 | 54,594 |
Less than 1 year [member] | ||
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Minimum lease payments | 11,651 | 8,123 |
1 to 2 years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Minimum lease payments | 10,408 | 7,526 |
In the third to fifth years, inclusive [member] | ||
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Minimum lease payments | 27,895 | 21,905 |
Over 5 years [member] | ||
Disclosure of finance lease and operating lease by lessee [Line items] | ||
Minimum lease payments | ¥ 30,196 | ¥ 33,277 |
Borrowings - Summary of Borrowi
Borrowings - Summary of Borrowings (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term bank borrowings - secured | ¥ 4,816 | ¥ 7,169 |
Long-term bank borrowings - unsecured | 108 | 3,435 |
Guaranteed bonds | 10,956 | 8,476 |
Unsecured bonds | 8,831 | 8,810 |
Total non-current borrowings | 24,711 | 27,890 |
Current portion of long-term bank borrowings - secured | 1,028 | 1,724 |
Current portion of long-term bank borrowings - unsecured | 3,103 | 135 |
Short-term bank borrowings - unsecured | 24,959 | 9,983 |
Short-term debentures | 10,000 | 17,000 |
Current portion of long-term bank borrowings | 39,090 | 28,842 |
Total borrowings | 63,801 | 56,732 |
Less than 1 year [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Total borrowings | 39,090 | 28,842 |
1 to 2 years [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Total borrowings | 6,527 | 4,833 |
In the third to fifth years, inclusive [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Total borrowings | 8,797 | 13,281 |
Over 5 years [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Total borrowings | ¥ 9,387 | ¥ 9,776 |
Borrowings - Summary of Borr169
Borrowings - Summary of Borrowings (Parenthetical) (Detail) ¥ in Millions, ₩ in Billions | Nov. 16, 2017CNY (¥) | Sep. 26, 2017CNY (¥) | Sep. 12, 2017CNY (¥) | Aug. 22, 2017CNY (¥) | Aug. 21, 2017CNY (¥) | Oct. 24, 2016CNY (¥) | Sep. 28, 2016KRW (₩) | Jul. 20, 2016CNY (¥) | Jul. 14, 2016CNY (¥) | Jun. 15, 2016CNY (¥) | Mar. 18, 2013CNY (¥) | Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) |
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Carrying amount of related aircraft and buildings pledged as security | ¥ 11,207 | ¥ 17,559 | |||||||||||
Guaranteed bonds [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | 10 | ||||||||||||
Principal amount of borrowing | ¥ 4,800 | ||||||||||||
Interest rate of borrowing | 5.05% | ||||||||||||
Medium-term bonds [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P3Y | 5 | 3 | ||||||||||
Principal amount of borrowing | ¥ 1,500 | ¥ 4,000 | ¥ 3,000 | ||||||||||
Interest rate of borrowing | 3.00% | 3.39% | 3.15% | ||||||||||
Guaranteed notes [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P3Y | ||||||||||||
Principal amount of borrowing | ₩ | ₩ 120 | ||||||||||||
Interest rate of borrowing | 2.05% | ||||||||||||
Note [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P3Y | ||||||||||||
Principal amount of borrowing | ₩ | ₩ 55 | ||||||||||||
Interest rate of borrowing | 2.85% | ||||||||||||
Corporate bonds [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P3Y | P10Y | |||||||||||
Principal amount of borrowing | ¥ 500 | ¥ 3,000 | |||||||||||
Interest rate of borrowing | 2.80% | ||||||||||||
Corporate bonds one [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P10Y | ||||||||||||
Principal amount of borrowing | ¥ 1,500 | ||||||||||||
Interest rate of borrowing | 3.03% | ||||||||||||
Corporate bonds two [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P10Y | ||||||||||||
Principal amount of borrowing | ¥ 1,500 | ||||||||||||
Interest rate of borrowing | 3.30% | ||||||||||||
Short-term debentures [member] | |||||||||||||
Disclosure of detailed information about borrowings [Line Items] | |||||||||||||
Term of borrowing | P179D | P179D | P150D | P270D | |||||||||
Principal amount of borrowing | ¥ 2,000 | ¥ 2,000 | ¥ 3,000 | ¥ 3,000 | |||||||||
Interest rate of borrowing | 4.20% | 4.25% | 4.25% | 4.16% |
Borrowings - Summary of Long-te
Borrowings - Summary of Long-term Borrowings and Bonds (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | ¥ 28,842 | ¥ 29,749 |
Long-term bank borrowings [member] | RMB [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 3,028 | 3,278 |
Long-term bank borrowings [member] | USD [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 2,003 | 4,970 |
Long-term bank borrowings [member] | EUR [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 4,024 | 4,215 |
Guaranteed bonds [member] | RMB [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 7,794 | 7,792 |
Guaranteed bonds [member] | SGD [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 2,435 | |
Guaranteed bonds [member] | KRW [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 727 | 684 |
Unsecured bonds [member] | RMB [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | 8,500 | 8,500 |
Unsecured bonds [member] | KRW [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term borrowings | ¥ 331 | ¥ 310 |
Borrowings - Summary of Long171
Borrowings - Summary of Long-term Borrowings and Bonds (Parenthetical) (Detail) | Mar. 18, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Guaranteed bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 5.05% | ||
Borrowings maturity year | 10 | ||
RMB [member] | Long-term bank borrowings [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings maturity year | 0 | 2,021 | |
RMB [member] | Long-term bank borrowings [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 3.10% | 3.40% | |
RMB [member] | Long-term bank borrowings [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 3.48% | 4.41% | |
RMB [member] | Guaranteed bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings maturity year | 0 | 2,026 | |
RMB [member] | Guaranteed bonds [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 3.03% | 3.03% | |
RMB [member] | Guaranteed bonds [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 5.05% | 5.05% | |
RMB [member] | Unsecured bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings maturity year | 0 | 2,021 | |
RMB [member] | Unsecured bonds [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 3.00% | 3.00% | |
RMB [member] | Unsecured bonds [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 3.39% | 3.39% | |
USD [member] | Long-term bank borrowings [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings maturity year | 0 | 2,025 | |
USD [member] | Long-term bank borrowings [member] | Bottom of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate basis | 6 month libor +0.55% | 6 months libor+0.75% | |
Borrowings interest rate basis adjustment | 0.55% | 0.75% | |
USD [member] | Long-term bank borrowings [member] | Top of range [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate basis | 6 months libor +2.85% | 6 months libor +3.75% | |
Borrowings interest rate basis adjustment | 2.85% | 3.75% | |
EUR [member] | Long-term bank borrowings [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate basis | 3 months Euribor+0.5% | 3 months Euribor+0.5% | |
Borrowings interest rate basis adjustment | 0.50% | 0.50% | |
Borrowings maturity year | 0 | 2,026 | |
SGD [member] | Guaranteed bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 2.80% | ||
Borrowings maturity year | 0 | 2,020 | |
KRW [member] | Guaranteed bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 2.05% | 2.05% | |
Borrowings maturity year | 0 | 2,019 | |
KRW [member] | Unsecured bonds [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Borrowings interest rate | 2.85% | 2.85% | |
Borrowings maturity year | 0 | 2,019 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - Short-term borrowings [member] | Dec. 31, 2017 | Dec. 31, 2016 |
Bottom of range [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Borrowings interest rate | 0.70% | 1.49% |
Top of range [member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Borrowings interest rate | 4.35% | 4.35% |
Provision for Return Conditi173
Provision for Return Condition Checks for Aircraft Under Operating Leases - Summary of Provision for Return Condition Checks for Aircraft Under Operating Leases (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of provision for return condition checks for aircraft under operating leases [abstract] | ||
Beginning balance | ¥ 3,670 | ¥ 3,503 |
Accrual | 1,214 | 1,010 |
Utilization | (1,865) | (843) |
Ending balance | 3,019 | 3,670 |
Less: current portion | (981) | (1,175) |
Long-term portion | ¥ 2,038 | ¥ 2,495 |
Other Long-term Liabilities - S
Other Long-term Liabilities - Summary of Other Long-term Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Subclassifications of assets, liabilities and equities [abstract] | ||
Fair value of unredeemed points awarded under the Group's frequent flyer programmes | ¥ 2,030 | ¥ 1,750 |
Long-term duties and levies payable relating to finance leases | 1,411 | 1,608 |
Other long-term payables | 1,321 | 1,151 |
Other long-term liabilities | 4,762 | 4,509 |
Less: current portion included in other payables and accrued expenses (Note 32) | (1,038) | (635) |
Long-term portion | ¥ 3,724 | ¥ 3,874 |
Post-Retirement Benefit Obli175
Post-Retirement Benefit Obligations - Summary of Post-retirement Benefit Obligations Recognized in Consolidated Statement of Financial Position (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of defined benefit plans [abstract] | ||
Post-retirement benefit obligations | ¥ 2,670 | ¥ 3,063 |
Less: current portion | (168) | (173) |
Long-term portion | ¥ 2,502 | ¥ 2,890 |
Post-Retirement Benefit Obli176
Post-Retirement Benefit Obligations - Summary of Principal Actuarial Assumptions Utilized (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [abstract] | ||
Discount rates for post-retirement benefits | 4.10% | 3.50% |
Mortality rate | China Insurance Life Mortality Table (2010-2013). CL5 for Male and CL6 for Female | China Insurance Life Mortality Table (2010-2013). CL5 for Male and CL6 for Female |
Annual increase rate of post-retirement medical expenses | 6.50% | 6.50% |
Inflation rate of pension benefits | 2.50% | 2.50% |
Post-Retirement Benefit Obli177
Post-Retirement Benefit Obligations - Summary of Quantitative Sensitivity Analysis for Significant Assumptions (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Discount rate for post-retirement benefits [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line items] | ||
Increase in rate % | 0.25% | 0.25% |
Increase/(decrease) in post-retirement benefit obligations | ¥ (73) | ¥ (95) |
Decrease in rate % | 0.25% | 0.25% |
Increase/(decrease) in post-retirement benefit obligations | ¥ 77 | ¥ 100 |
Annual increase rate of pension benefits [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line items] | ||
Increase in rate % | 1.00% | 1.00% |
Increase/(decrease) in post-retirement benefit obligations | ¥ 283 | ¥ 325 |
Decrease in rate % | 1.00% | 1.00% |
Increase/(decrease) in post-retirement benefit obligations | ¥ (240) | ¥ (275) |
Annual increase rate of medical expenses [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line items] | ||
Increase in rate % | 1.00% | 1.00% |
Increase/(decrease) in post-retirement benefit obligations | ¥ 40 | ¥ 46 |
Decrease in rate % | 1.00% | 1.00% |
Increase/(decrease) in post-retirement benefit obligations | ¥ (33) | ¥ (38) |
Post-Retirement Benefit Obli178
Post-Retirement Benefit Obligations - Summary of Expected Contributions of Post-retirement Benefit Obligations (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [Line Items] | ||
Expected payments | ¥ 4,747 | ¥ 5,115 |
Less than 1 year [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Expected payments | 168 | 173 |
2 and 5 years [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Expected payments | 679 | 706 |
Between 5 and 10 years [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Expected payments | 851 | 894 |
Over 10 years [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Expected payments | ¥ 3,049 | ¥ 3,342 |
Post-Retirement Benefit Obli179
Post-Retirement Benefit Obligations - Additional Information (Detail) - Years | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [abstract] | ||
Average duration of the post-retirement benefit obligations | 13 | 13.5 |
Post-Retirement Benefit Obli180
Post-Retirement Benefit Obligations - Summary of Movements in Post-retirement Benefit Obligations (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of movements in defined benefit liability [abstract] | |||
Beginning balance | ¥ 3,063 | ¥ 2,750 | |
Pension cost charged to profit or loss, Service cost | 0 | 0 | |
Pension cost charged to profit or loss, Net interest | 98 | 88 | ¥ 114 |
Pension cost charged to profit or loss, Sub-total included in profit or loss | 98 | 88 | |
Remeasurement (gains)/losses in other comprehensive income, Actuarial changes arising from changes in financial assumptions | (220) | (80) | |
Remeasurement (gains)/losses in other comprehensive income, Actuarial changes arising from changes in demographic assumptions | 373 | ||
Remeasurement (gains)/losses in other comprehensive income, Experience adjustments | 96 | 117 | |
Remeasurement (gains)/losses in other comprehensive income, Sub-total included in other comprehensive income | (124) | 410 | |
Benefit settled | (200) | (185) | |
(Transferred out) Due to disposal of subsidiary | (167) | ||
Ending balance | ¥ 2,670 | ¥ 3,063 | ¥ 2,750 |
Deferred Taxation - Summary of
Deferred Taxation - Summary of Net Deferred Tax Assets/(Liabilities) (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | ¥ 122 | ¥ 79 | |
Deferred tax liabilities | (18) | (86) | |
Net deferred tax assets/(liabilities) | ¥ 104 | ¥ (7) | ¥ 235 |
Deferred Taxation - Summary 182
Deferred Taxation - Summary of Movements in Net Deferred Tax Assets/(Liabilities) (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets and liabilities [abstract] | |||
At the beginning of the year | ¥ (7) | ¥ 235 | |
Credited/(charged) to profit or loss (note 14) | 162 | (146) | ¥ 113 |
Charged to other comprehensive income | (51) | (96) | |
At the end of the year | ¥ 104 | ¥ (7) | ¥ 235 |
Deferred Taxation - Summary 183
Deferred Taxation - Summary of Deferred Tax Assets and Liabilities Prior to Offsetting of Balances within Same Tax Jurisdiction (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | ¥ 122 | ¥ 79 | |
Net deferred tax (liabilities)/assets | 104 | (7) | ¥ 235 |
Deferred tax liabilities | (18) | (86) | |
Impairment provision for receivables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 64 | 70 | 80 |
Impairment provision for property, plant, and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 104 | 11 | 26 |
Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 82 | 15 | 25 |
Impairment provision for available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 25 | 25 | 25 |
Other payables and accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 29 | 88 | 89 |
Aged payables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | 5 | 7 | |
Accumulated depreciation and amortization [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | (56) | (85) | (136) |
Available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | (162) | (123) | (39) |
Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Net deferred tax (liabilities)/assets | (38) | (37) | ¥ (11) |
Cost [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 360 | 238 | |
Deferred tax liabilities | (256) | (245) | |
Cost [member] | Impairment provision for obsolete flight equipment spare parts [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 51 | 22 | |
Cost [member] | Impairment provision for receivables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 64 | 70 | |
Cost [member] | Impairment provision for property, plant, and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 104 | 11 | |
Cost [member] | Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 82 | 15 | |
Cost [member] | Impairment provision for available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 25 | 25 | |
Cost [member] | Other payables and accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 29 | 88 | |
Cost [member] | Aged payables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax assets | 5 | 7 | |
Cost [member] | Accumulated depreciation and amortization [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax liabilities | (56) | (85) | |
Cost [member] | Available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax liabilities | (162) | (123) | |
Cost [member] | Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
Deferred tax liabilities | ¥ (38) | ¥ (37) |
Deferred Taxation - Summary 184
Deferred Taxation - Summary of Movements in Net Deferred Tax (Liabilities)/Assets of the Group (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | ¥ (7) | ¥ 235 | |
(Charged)/ credited to profit or loss | 162 | (146) | ¥ 113 |
Charged to other comprehensive income | (51) | (96) | |
At the end of the year | 104 | (7) | 235 |
Impairment provision for flight equipment spare parts [Member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 22 | 43 | |
(Charged)/ credited to profit or loss | 29 | (21) | |
At the end of the year | 51 | 22 | 43 |
Impairment provision for receivables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 70 | 80 | |
(Charged)/ credited to profit or loss | (6) | (10) | |
At the end of the year | 64 | 70 | 80 |
Impairment provision for property, plant, and equipment [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 11 | 26 | |
(Charged)/ credited to profit or loss | 93 | (15) | |
At the end of the year | 104 | 11 | 26 |
Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 15 | 25 | |
(Charged)/ credited to profit or loss | 78 | ||
Charged to other comprehensive income | (11) | (10) | |
At the end of the year | 82 | 15 | 25 |
Impairment provision for available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 25 | 25 | |
At the end of the year | 25 | 25 | 25 |
Other payables and accruals [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 88 | 89 | |
(Charged)/ credited to profit or loss | (59) | (1) | |
At the end of the year | 29 | 88 | 89 |
Aged payables [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 7 | ||
(Charged)/ credited to profit or loss | (2) | 7 | |
At the end of the year | 5 | 7 | |
Net deferred tax assets [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 238 | 421 | |
(Charged)/ credited to profit or loss | 133 | (173) | |
Charged to other comprehensive income | (11) | (10) | |
At the end of the year | 360 | 238 | 421 |
Accumulated depreciation and amortization [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | (85) | (136) | |
(Charged)/ credited to profit or loss | 29 | 51 | |
At the end of the year | (56) | (85) | (136) |
Available-for-sale investments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | (123) | (39) | |
(Charged)/ credited to profit or loss | (24) | ||
Charged to other comprehensive income | (39) | (60) | |
At the end of the year | (162) | (123) | (39) |
Derivative financial instruments [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | (37) | (11) | |
Charged to other comprehensive income | (1) | (26) | |
At the end of the year | (38) | (37) | (11) |
Net deferred tax liabilities [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | (245) | (186) | |
(Charged)/ credited to profit or loss | 29 | 27 | |
Charged to other comprehensive income | (40) | (86) | |
At the end of the year | ¥ (256) | (245) | (186) |
Tax losses [member] | |||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | |||
At the beginning of the year | 133 | ||
(Charged)/ credited to profit or loss | ¥ (133) | ||
At the end of the year | ¥ 133 |
Deferred Taxation - Summary 185
Deferred Taxation - Summary of Balances for Which Deferred Tax Assets Have Not Been Recognised (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred taxation [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | ||
Tax losses carried forward | ¥ 42 | ¥ 409 |
Other deductible temporary differences | 6 | 32 |
Total unrecognised deferred tax assets | 48 | 441 |
Temporary differences [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [Line items] | ||
Tax losses carried forward | 167 | 1,637 |
Other deductible temporary differences | 27 | 128 |
Total unrecognised deferred tax assets | ¥ 194 | ¥ 1,765 |
Derivative Financial Instrum186
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | ¥ 151 | ¥ 148 |
Derivative financial instruments, current assets | (11) | |
Derivative financial instruments, noncurrent assets | 151 | 137 |
Derivative financial instruments, liabilities | 325 | 58 |
Derivative financial instruments, current liabilities | (324) | (11) |
Derivative financial instruments, noncurrent liabilities | 1 | 47 |
Interest rate swaps [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 151 | 137 |
Derivative financial instruments, liabilities | 14 | 47 |
Forward foreign exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 11 | |
Derivative financial instruments, current assets | (11) | |
Derivative financial instruments, liabilities | 311 | 11 |
Derivative financial instruments, current liabilities | ¥ (324) | ¥ (11) |
Derivative Financial Instrum187
Derivative Financial Instruments - Summary of Derivative Financial Instruments (Parenthetical) (Detail) ¥ in Millions | 12 Months Ended | ||||
Dec. 31, 2017CNY (¥) | Dec. 31, 2016CNY (¥) | Dec. 31, 2015CNY (¥) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of detailed information about financial instruments [Line Items] | |||||
Fair value hedges (recognised in (loss)/gain on fair value changes of derivative financial instruments) | ¥ (311) | ¥ 2 | ¥ 6 | ||
Interest rate swaps [member] | |||||
Disclosure of detailed information about financial instruments [Line Items] | |||||
Notional amount | $ | $ 1,420,000,000 | $ 1,636,000,000 | |||
Realised (losses)/gains (recorded in finance costs) | (63) | (122) | (134) | ||
Cash flow hedge (recognised in other comprehensive income) | 47 | 166 | 2 | ||
Fair value hedges (recognised in (loss)/gain on fair value changes of derivative financial instruments) | 2 | 6 | |||
Realised and unrealised gains and losses on derivatives | (16) | 46 | (126) | ||
Forward foreign exchange contracts [member] | |||||
Disclosure of detailed information about financial instruments [Line Items] | |||||
Notional amount | $ | 829,000,000 | 440,000,000 | |||
Realised (losses)/gains (recorded in finance costs) | (177) | 5 | 15 | ||
Cash flow hedge (recognised in other comprehensive income) | (16) | (11) | |||
Fair value hedges (recognised in (loss)/gain on fair value changes of derivative financial instruments) | (311) | ||||
Realised and unrealised gains and losses on derivatives | ¥ (488) | (11) | 4 | ||
Currency swap contract [member] | |||||
Disclosure of detailed information about financial instruments [Line Items] | |||||
Notional amount | $ | $ 0 | $ 0 | |||
Realised (losses)/gains (recorded in finance costs) | 5 | ||||
Cash flow hedge (recognised in other comprehensive income) | (7) | 7 | |||
Realised and unrealised gains and losses on derivatives | ¥ (2) | ¥ 7 |
Financial Assets and Financi188
Financial Assets and Financial Liabilities - Summary of Financial Instruments by Category (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Available-for-sale investments | ¥ 800 | ¥ 645 |
Derivative financial instruments | 151 | 148 |
Trade and notes receivables | 2,124 | 2,660 |
Prepayments and other receivables | 3,913 | 2,937 |
Restricted bank deposits and short-term bank deposits | 51 | 43 |
Cash and cash equivalents | 4,605 | 1,695 |
Other non-current assets | 293 | 285 |
Total | 11,937 | 8,413 |
Borrowings | 63,801 | 56,732 |
Obligations under finance leases | 66,868 | 61,041 |
Derivative financial instruments | 325 | 58 |
Trade and bills payables | 3,184 | 3,376 |
Other payables and accruals | 12,964 | 12,942 |
Total | 147,142 | 134,149 |
Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments | 325 | 58 |
Total | 325 | 58 |
Loans and borrowings [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Borrowings | 63,801 | 56,732 |
Obligations under finance leases | 66,868 | 61,041 |
Trade and bills payables | 3,184 | 3,376 |
Other payables and accruals | 12,964 | 12,942 |
Total | 146,817 | 134,091 |
Loans and receivables [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Trade and notes receivables | 2,124 | 2,660 |
Prepayments and other receivables | 3,913 | 2,937 |
Restricted bank deposits and short-term bank deposits | 51 | 43 |
Cash and cash equivalents | 4,605 | 1,695 |
Other non-current assets | 293 | 285 |
Total | 10,986 | 7,620 |
Derivative financial instruments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments | 151 | 148 |
Total | 151 | 148 |
Available-for-sale investments [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Available-for-sale investments | 800 | 645 |
Total | ¥ 800 | ¥ 645 |
Financial Assets and Financi189
Financial Assets and Financial Liabilities - Additional Information (Detail) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017CNY (¥)Contracts | Dec. 31, 2016CNY (¥) | |
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Percentage of operating expense accounted for by aircraft fuel | 25.00% | 21.00% |
Number of open crude oil option contracts | Contracts | 0 | |
Balance due from BSP agents | ¥ 2,124 | ¥ 2,630 |
Fuel price risk [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Percentage change in fuel price | 5.00% | 5.00% |
Increase in fuel cost due to a potential increase in fuel prices [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Change in fuel costs due to a potential change in fuel prices | ¥ 1,257 | ¥ 981 |
Decrease in fuel cost due to a potential decrease in fuel prices [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Change in fuel costs due to a potential change in fuel prices | (1,257) | (981) |
Forward foreign exchange contracts [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Notional value | 5,415 | |
Billing and settlements plan agents [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Balance due from BSP agents | ¥ 717 | ¥ 922 |
Financial Assets and Financi190
Financial Assets and Financial Liabilities - Summary of Foreign Currency Risk (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | ¥ 2,124 | ¥ 2,630 |
Cash and cash equivalents | 4,605 | 1,695 |
Other non-current assets | 2,927 | 2,969 |
Trade and other payables | (3,184) | (3,376) |
Obligations under finance leases | (66,868) | (61,041) |
Borrowings | (63,801) | (56,732) |
USD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | 31 | 79 |
Cash and cash equivalents | 961 | 702 |
Other receivables | 1,065 | 1,636 |
Other non-current assets | 206 | 267 |
Trade and other payables | (111) | (123) |
Obligations under finance leases | (29,254) | (44,913) |
Borrowings | (7,555) | (7,953) |
EUR [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | 3 | 99 |
Cash and cash equivalents | 74 | 39 |
Borrowings | (4,921) | (4,215) |
SGD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | 16 | |
Cash and cash equivalents | 28 | |
Other receivables | 1 | |
Trade and other payables | (6) | |
Obligations under finance leases | (627) | |
Borrowings | (2,435) | |
JPY [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | 2 | |
Cash and cash equivalents | 15 | |
Other receivables | 8 | |
Trade and other payables | (2) | |
Obligations under finance leases | (326) | |
KRW [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Trade receivables | 16 | 27 |
Other receivables | 131 | 125 |
Trade and other payables | (1) | |
Borrowings | ¥ (1,058) | ¥ (1,008) |
Financial Assets and Financi191
Financial Assets and Financial Liabilities - Summary of Sensitivity Analysis of Foreign Currency Risk (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Effect on profit or loss if currency weakens against foreign currency [member] | USD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | ¥ 260 | ¥ 377 |
Effect on profit or loss if currency weakens against foreign currency [member] | EUR [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 36 | 31 |
Effect on profit or loss if currency weakens against foreign currency [member] | JPY [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 1 | 2 |
Effect on profit or loss if currency weakens against foreign currency [member] | KRW [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 7 | 6 |
Effect on profit or loss if currency strengthens against foreign currency [member] | USD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 260 | 377 |
Effect on profit or loss if currency strengthens against foreign currency [member] | EUR [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 36 | 31 |
Effect on profit or loss if currency strengthens against foreign currency [member] | JPY [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 1 | 2 |
Effect on profit or loss if currency strengthens against foreign currency [member] | KRW [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | 7 | 6 |
Effect on other comprehensive income if currency weakens against foreign currency [member] | USD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | (41) | (23) |
Effect on other comprehensive income if currency strengthens against foreign currency [member] | USD [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if RMB (weakens)/strengthens against foreign currency | ¥ (41) | ¥ (23) |
Financial Assets and Financi192
Financial Assets and Financial Liabilities - Summary of Interest Rate Risk (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Cash and cash equivalents | ¥ 4,605 | ¥ 1,695 |
Restricted bank deposits and short-term bank deposits | 51 | 43 |
Borrowings | (63,801) | (56,732) |
Obligations under finance leases | (66,868) | (61,041) |
Floating interest rate [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Cash and cash equivalents | 4,605 | 1,695 |
Restricted bank deposits and short-term bank deposits | 51 | 43 |
Borrowings | (13,272) | (15,419) |
Obligations under finance leases | (66,868) | (61,041) |
Floating interest rate [member] | Interest rate swaps [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Notional amount | 9,280 | 11,352 |
Fixed interest rate [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Borrowings | ¥ (50,529) | ¥ (41,313) |
Financial Assets and Financi193
Financial Assets and Financial Liabilities - Summary of Sensitivity Analysis of Interest Rate Risk (Detail) - Floating interest rate [member] - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Effect on profit or loss if floating interest rate increases [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if floating interest rate increases | ¥ (142) | ¥ (140) |
Effect on other comprehensive income if floating interest rate increases [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Effect on profit or loss/other comprehensive income if floating interest rate increases | ¥ 17 | ¥ 21 |
Financial Assets and Financi194
Financial Assets and Financial Liabilities - Summary of Contractual Undiscounted Cash Flows of Financial Liabilities (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative and derivative financial liabilities [Line Items] | ||
Borrowings | ¥ 68,560 | ¥ 61,706 |
Derivative financial instruments | 325 | 58 |
Obligations under finance leases | 80,150 | 70,831 |
Trade, bills and other payables | 16,148 | 16,318 |
Total | 165,183 | 148,913 |
Less than 1 year [member] | ||
Disclosure of maturity analysis for non-derivative and derivative financial liabilities [Line Items] | ||
Borrowings | 41,060 | 30,262 |
Derivative financial instruments | 324 | 11 |
Obligations under finance leases | 11,651 | 8,123 |
Trade, bills and other payables | 16,148 | 16,318 |
Total | 69,183 | 54,714 |
1 to 2 years [member] | ||
Disclosure of maturity analysis for non-derivative and derivative financial liabilities [Line Items] | ||
Borrowings | 7,325 | 5,670 |
Derivative financial instruments | 33 | |
Obligations under finance leases | 10,408 | 7,526 |
Total | 17,733 | 13,229 |
2 and 5 years [member] | ||
Disclosure of maturity analysis for non-derivative and derivative financial liabilities [Line Items] | ||
Borrowings | 10,161 | 14,961 |
Derivative financial instruments | 1 | 8 |
Obligations under finance leases | 27,895 | 21,905 |
Total | 38,057 | 36,874 |
Over 5 years [member] | ||
Disclosure of maturity analysis for non-derivative and derivative financial liabilities [Line Items] | ||
Borrowings | 10,014 | 10,813 |
Derivative financial instruments | 6 | |
Obligations under finance leases | 30,196 | 33,277 |
Total | ¥ 40,210 | ¥ 44,096 |
Financial Assets and Financi195
Financial Assets and Financial Liabilities - Summary of Debt Ratio (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of nature and extent of risks arising from financial instruments [abstract] | ||
Total liabilities | ¥ 170,949 | ¥ 159,958 |
Total assets | ¥ 229,727 | ¥ 212,324 |
Debt ratio | 74.00% | 75.00% |
Financial Assets and Financi196
Financial Assets and Financial Liabilities - Summary of Financial Instruments Not Measured at Fair Value (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other non-current assets | ¥ 217 | ¥ 285 |
Long-term borrowings | 24,711 | 27,890 |
Obligations under finance leases | 57,627 | 54,594 |
Total | 147,142 | 134,149 |
Carrying amount [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other non-current assets | 217 | 285 |
Long-term borrowings | 24,711 | 27,890 |
Obligations under finance leases | 57,627 | 54,594 |
Total | 82,338 | 82,484 |
Not measured at fair value but for which fair values are disclosed [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other non-current assets | 193 | 258 |
Long-term borrowings | 23,812 | 28,075 |
Obligations under finance leases | 57,352 | 50,408 |
Total | ¥ 81,164 | ¥ 78,483 |
Financial Assets and Financi197
Financial Assets and Financial Liabilities - Summary of Fair Value Hierarchy of Assets and Liabilities Measured at Fair Value (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | ¥ 151 | ¥ 148 |
Available-for-sale financial assets | 800 | 645 |
Total | 11,937 | 8,413 |
Derivative financial instruments, liabilities | 325 | 58 |
Total, liabilities | 147,142 | 134,149 |
Forward foreign exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 11 | |
Derivative financial instruments, liabilities | 311 | 11 |
Interest rate swaps [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 151 | 137 |
Derivative financial instruments, liabilities | 14 | 47 |
At fair value [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Available-for-sale financial assets | 693 | 538 |
Total | 844 | 686 |
Total, liabilities | 325 | 58 |
At fair value [member] | Forward foreign exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 11 | |
Derivative financial instruments, liabilities | 311 | 11 |
At fair value [member] | Interest rate swaps [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 151 | 137 |
Derivative financial instruments, liabilities | 14 | 47 |
At fair value [member] | Quoted prices in active markets (Level 1) [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Available-for-sale financial assets | 693 | 538 |
Total | 693 | 538 |
At fair value [member] | Significant observable inputs (Level 2) [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Total | 151 | 148 |
Total, liabilities | 325 | 58 |
At fair value [member] | Significant observable inputs (Level 2) [member] | Forward foreign exchange contracts [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 11 | |
Derivative financial instruments, liabilities | 311 | 11 |
At fair value [member] | Significant observable inputs (Level 2) [member] | Interest rate swaps [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Derivative financial instruments, assets | 151 | 137 |
Derivative financial instruments, liabilities | ¥ 14 | ¥ 47 |
Financial Assets and Financi198
Financial Assets and Financial Liabilities - Summary of Fair Value Hierarchy of Assets and Liabilities for which Fair Values are Disclosed (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other long-term assets | ¥ 217 | ¥ 285 |
Long-term borrowings | 24,711 | 27,890 |
Obligations under finance leases | 57,627 | 54,594 |
Total | 147,142 | 134,149 |
Not measured at fair value but for which fair values are disclosed [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other long-term assets | 193 | 258 |
Long-term borrowings | 23,812 | 28,075 |
Obligations under finance leases | 57,352 | 50,408 |
Total | 81,164 | 78,483 |
Not measured at fair value but for which fair values are disclosed [member] | Quoted prices in active markets (Level 1) [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Long-term borrowings | 2,678 | |
Total | 2,678 | |
Not measured at fair value but for which fair values are disclosed [member] | Significant observable inputs (Level 2) [member] | ||
Disclosure of detailed information about financial instruments [Line Items] | ||
Deposits relating to aircraft held under operating leases included in other long-term assets | 193 | 258 |
Long-term borrowings | 21,134 | 28,075 |
Obligations under finance leases | 57,352 | 50,408 |
Total | ¥ 78,486 | ¥ 78,483 |
Share Capital - Summary of Shar
Share Capital - Summary of Share Capital (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [Line items] | ||
Share capital | ¥ 14,467 | ¥ 14,467 |
A Shares [member] | Shares without trading moratorium [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | 9,808 | 8,481 |
A Shares [member] | Shanghai Licheng Information Technology Consulting Co., Ltd. [member] | Shares with trading moratorium [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | 466 | |
A Shares [member] | China National Aviation Fuel Holding Company [member] | Shares with trading moratorium [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | 466 | |
A Shares [member] | China COSCO Shipping Corporation Limited [member] | Shares with trading moratorium [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | 233 | |
A Shares [member] | Caitong Fund Management Co., Ltd. [member] | Shares with trading moratorium [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | 162 | |
H Shares [member] | ||
Disclosure of classes of share capital [Line items] | ||
Share capital | ¥ 4,659 | ¥ 4,659 |
Share Capital - Summary of S200
Share Capital - Summary of Share Capital (Parenthetical) (Detail) - ¥ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [abstract] | ||
Par value per share | ¥ 1 | ¥ 1 |
Share Capital - Summary of Move
Share Capital - Summary of Movements in Share Capital (Detail) shares in Millions | 12 Months Ended |
Dec. 31, 2017shares | |
Disclosure of classes of share capital [abstract] | |
Beginning balance | 14,467 |
Issue of shares | 0 |
Ending balance | 14,467 |
Reserves - Summary of Reserves
Reserves - Summary of Reserves (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | ¥ 52,366 | ¥ 39,931 | ¥ 31,771 |
Unrealized gains on cash flow hedges (note 39) | 35 | 107 | 10 |
Fair value movements in available-for-sale investments | 115 | 40 | 87 |
Fair value changes of available-for-sale investments held by an associate | 10 | (1) | 7 |
Actuarial gains (losses) on post-retirement benefit obligations | 124 | (410) | 196 |
Issue of shares | 8,540 | 2,855 | |
Profit for the year | 6,810 | 4,955 | 5,043 |
Ending balance | 58,778 | 52,366 | 39,931 |
Share premium [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | 29,540 | 22,327 | |
Issue of shares | 7,213 | ||
Ending balance | 29,540 | 29,540 | 22,327 |
Capital reserve [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | (778) | (778) | |
Ending balance | (778) | (778) | (778) |
Hedging reserve [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | 56 | (51) | |
Unrealized gains on cash flow hedges (note 39) | 35 | 107 | |
Ending balance | 91 | 56 | (51) |
Statutory reserve [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | 328 | 184 | |
Transfer from retained profits | 212 | 144 | |
Ending balance | 540 | 328 | 184 |
Other reserves [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | (2,947) | (2,579) | |
Fair value movements in available-for-sale investments | 110 | 36 | |
Fair value changes of available-for-sale investments held by an associate | 10 | (1) | |
Actuarial gains (losses) on post-retirement benefit obligations | 122 | (403) | |
Ending balance | (2,705) | (2,947) | (2,579) |
Retained Profits [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | 8,784 | 5,168 | 815 |
Transfer from retained profits | (212) | (144) | |
Profit for the year | 6,342 | 4,498 | 4,537 |
Final 2016 dividend | (709) | ||
Interim 2016 dividend (note 48) | (738) | ||
Ending balance | 14,205 | 8,784 | 5,168 |
Retained earnings and other reserves [member] | |||
Disclosure of reserves within equity [Line Items] | |||
Beginning balance | 34,983 | 24,271 | |
Unrealized gains on cash flow hedges (note 39) | 35 | 107 | |
Fair value movements in available-for-sale investments | 110 | 36 | |
Fair value changes of available-for-sale investments held by an associate | 10 | (1) | |
Actuarial gains (losses) on post-retirement benefit obligations | 122 | (403) | |
Issue of shares | 7,213 | ||
Profit for the year | 6,342 | 4,498 | |
Final 2016 dividend | (709) | ||
Interim 2016 dividend (note 48) | (738) | ||
Ending balance | ¥ 40,893 | ¥ 34,983 | ¥ 24,271 |
Disposal of a Subsidiary - Addi
Disposal of a Subsidiary - Additional Information (Detail) | Feb. 08, 2017 |
Eastern Airlines Industry Investment Company Limited [member] | |
Disclosure Of Disposal Of Subsidiaries [Line Items] | |
Proportion of ownership interest in subsidiary | 100.00% |
Disposal of a Subsidiary - Summ
Disposal of a Subsidiary - Summary of Disposal of a Subsidiary (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Net assets disposed of: | ||
Intangible assets (note 17) | ¥ 14 | |
Property, plant and equipment (note 18) | 2,019 | |
Prepayments for land use right | 305 | |
Other non-current assets | 429 | |
Deferred tax assets | 4 | |
Flight equipment spare parts | 59 | |
Trade receivables | 1,097 | |
Prepayments and other receivables | 670 | |
Cash and cash equivalents | 536 | |
Restricted bank deposits | 1 | |
Sales in advance of carriage | (124) | |
Trade payables | (1,915) | |
Other payables and accruals | (1,090) | |
Income tax payable | (26) | |
Obligations under finance leases | (409) | |
Borrowings | (262) | |
Provision for return condition checks for aircraft under operating leases | (511) | |
Other long-term liabilities | (47) | |
Post-retirement benefit obligations | (158) | |
Non-controllinginterests | 87 | |
Net assets | 679 | |
Gain on disposal of a subsidiary | 1,754 | ¥ 41 |
Cash | ¥ 2,433 |
Disposal of a Subsidiary - S205
Disposal of a Subsidiary - Summary of Analysis of Net Inflow of Cash and Cash Equivalents in Respect of Disposal of a Subsidiary (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Disclosure of subsidiaries [abstract] | ||
Cash consideration | ¥ 2,433 | |
Cash and bank balances disposed of | (536) | |
Net inflow of cash and cash equivalents in respect of the disposal of a subsidiary | ¥ 1,897 | ¥ 49 |
Partly-owned Subsidiaries wi206
Partly-owned Subsidiaries with Material Non-controlling Interests - Summary of Subsidiaries that have Material Non-controlling Interests (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [Line Items] | |||
Profit for the year allocated to non-controlling interests | ¥ 468 | ¥ 457 | ¥ 506 |
Accumulated balances of non-controlling interests at the reporting dates | ¥ 3,418 | ¥ 2,916 | |
China Eastern Airlines Jiangsu Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity interest held by non-controlling interests | 37.44% | 37.44% | |
Profit for the year allocated to non-controlling interests | ¥ 216 | ¥ 191 | |
Dividends paid to non-controlling interests | 37 | 56 | |
Accumulated balances of non-controlling interests at the reporting dates | ¥ 1,416 | ¥ 1,236 | |
China Eastern Airlines Yunnan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity interest held by non-controlling interests | 9.64% | 9.64% | |
Profit for the year allocated to non-controlling interests | ¥ 67 | ¥ 75 | |
Accumulated balances of non-controlling interests at the reporting dates | ¥ 641 | ¥ 574 | |
China Eastern Airlines Wuhan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity interest held by non-controlling interests | 40.00% | 40.00% | |
Profit for the year allocated to non-controlling interests | ¥ 178 | ¥ 173 | |
Dividends paid to non-controlling interests | 22 | ||
Accumulated balances of non-controlling interests at the reporting dates | 1,393 | ¥ 1,249 | |
China Cargo Airlines Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Percentage of equity interest held by non-controlling interests | 17.00% | ||
Profit for the year allocated to non-controlling interests | ¥ 3 | ¥ 29 | |
Accumulated balances of non-controlling interests at the reporting dates | ¥ (105) |
Partly-owned Subsidiaries wi207
Partly-owned Subsidiaries with Material Non-controlling Interests - Summary of Financial Information of Subsidiaries that have Material Non-controlling Interests (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of subsidiaries [Line Items] | |||
Revenue | ¥ 102,475 | ¥ 98,904 | ¥ 93,969 |
Total expenses | 100,525 | 91,887 | 86,613 |
Profit for the year | 6,810 | 4,955 | 5,043 |
Total comprehensive income for the year | 7,094 | 4,691 | 5,343 |
Current assets | 18,293 | 15,888 | |
Non-current assets | 211,434 | 196,436 | |
Current liabilities | 80,328 | 68,082 | |
Non-current liabilities | 90,621 | 91,876 | |
Net cash flows from operating activities | 19,572 | 24,893 | 24,325 |
Net cash flows (used in)/from investing activities | (21,312) | (37,180) | (27,800) |
Net cash flows used in financing activities | 4,708 | 4,634 | 11,083 |
Effect of foreign exchange rate changes, net | (47) | 268 | ¥ 117 |
China Eastern Airlines Jiangsu Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Revenue | 8,257 | 7,298 | |
Total expenses | 7,680 | 6,787 | |
Profit for the year | 577 | 511 | |
Total comprehensive income for the year | 580 | 503 | |
Current assets | 1,124 | 1,260 | |
Non-current assets | 9,313 | 8,163 | |
Current liabilities | 2,260 | 1,971 | |
Non-current liabilities | 4,395 | 4,149 | |
Net cash flows from operating activities | 1,491 | 1,937 | |
Net cash flows (used in)/from investing activities | (588) | (675) | |
Net cash flows used in financing activities | (894) | (1,301) | |
Net (decrease)/increase in cash and cash equivalents | 9 | (39) | |
China Eastern Airlines Yunnan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Revenue | 8,939 | 9,054 | |
Total expenses | 8,244 | 8,280 | |
Profit for the year | 695 | 774 | |
Total comprehensive income for the year | 695 | 774 | |
Current assets | 1,230 | 990 | |
Non-current assets | 16,171 | 16,153 | |
Current liabilities | 4,471 | 3,056 | |
Non-current liabilities | 6,282 | 8,134 | |
Net cash flows from operating activities | 1,230 | 3,178 | |
Net cash flows (used in)/from investing activities | (274) | (1,098) | |
Net cash flows used in financing activities | (948) | (2,096) | |
Net (decrease)/increase in cash and cash equivalents | 8 | (16) | |
China Eastern Airlines Wuhan Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Revenue | 4,289 | 3,706 | |
Total expenses | 3,843 | 3,273 | |
Profit for the year | 446 | 433 | |
Total comprehensive income for the year | 461 | 438 | |
Current assets | 79 | 79 | |
Non-current assets | 7,047 | 6,108 | |
Current liabilities | 1,576 | 1,216 | |
Non-current liabilities | 2,067 | 1,849 | |
Net cash flows from operating activities | 846 | (196) | |
Net cash flows (used in)/from investing activities | (156) | 428 | |
Net cash flows used in financing activities | (682) | (241) | |
Net (decrease)/increase in cash and cash equivalents | 8 | (9) | |
China Cargo Airlines Co., Ltd. [member] | |||
Disclosure of subsidiaries [Line Items] | |||
Revenue | 507 | 3,770 | |
Total expenses | 462 | 3,598 | |
Profit for the year | 45 | 172 | |
Total comprehensive income for the year | ¥ 45 | 157 | |
Current assets | 1,595 | ||
Non-current assets | 1,525 | ||
Current liabilities | 2,834 | ||
Non-current liabilities | 889 | ||
Net cash flows from operating activities | 279 | ||
Net cash flows (used in)/from investing activities | 11 | ||
Net cash flows used in financing activities | (11) | ||
Effect of foreign exchange rate changes, net | (1) | ||
Net (decrease)/increase in cash and cash equivalents | ¥ 278 |
Notes to the Statement of Co208
Notes to the Statement of Consolidated Cash Flows - Summary of Notes to Statement of Consolidated Cash Flows (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
Profit before income tax | ¥ 8,610 | ¥ 6,497 | ¥ 5,667 |
Adjustments for: | |||
Depreciation of property, plant and equipment and amortization of other non-currentassets | 13,769 | 12,345 | 10,710 |
Amortization of intangible assets | 143 | 129 | 85 |
Depreciation of investment properties | 12 | 11 | 4 |
Amortization of prepayments for land use right | 45 | 63 | 60 |
Gains on disposal of property, plant and equipment | (13) | (74) | (377) |
Gain on disposal of prepayments for land use right | (5) | (3) | (1) |
Gain on disposal of investment in a subsidiary | (1,754) | (41) | |
Gain on disposal of investment in an associate | (12) | (12) | |
Gain on disposal of available-for-sale investments | (4) | (95) | (33) |
Dividend income from available-for-sale investments | (33) | (28) | (13) |
Share of results of associates | (202) | (148) | (126) |
Share of results of joint ventures | (49) | (39) | (26) |
Net foreign exchange (gain)/loss | (2,378) | 3,246 | 5,480 |
Loss/(gain) on fair value changes of derivative financial instruments | 311 | (2) | (6) |
Impairment charges | 491 | 29 | 228 |
Interest income | (111) | (96) | (66) |
Interest expense | 3,184 | 2,641 | 2,075 |
Operating profit before working capital changes | 22,004 | 24,464 | 23,620 |
Changes in working capital | |||
Flight equipment spare parts | (109) | (202) | 117 |
Trade and notes receivables | (500) | 208 | 985 |
Prepayments and other receivables | (753) | (839) | (2,011) |
Restricted bank deposits and short-term bank deposits | (8) | (8) | |
Sales in advance of carriage | (569) | 1,836 | 777 |
Trade and bills payables | 1,725 | (336) | 1,629 |
Other payables and accruals | 340 | 1,424 | (234) |
Staff housing allowances | 62 | (57) | 105 |
Other long-term liabilities | (728) | (883) | 1,164 |
Post-retirement benefit obligations | (217) | 321 | (282) |
Provision for return condition checks for aircraft under operating leases | (139) | 167 | (381) |
Operating lease deposits | 59 | 46 | |
Cash generated from operations | ¥ 21,108 | ¥ 26,154 | ¥ 25,535 |
Notes to the Statement of Co209
Notes to the Statement of Consolidated Cash Flows - Summary of Major Non-cash Transactions (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of cash flows [abstract] | |||
Finance lease obligations incurred for acquisition of aircraft | ¥ 6,865 | ¥ 8,838 | ¥ 21,887 |
Notes to the Statement of Co210
Notes to the Statement of Consolidated Cash Flows - Summary of Changes in Liabilities Arising from Financing Activities (Detail) ¥ in Millions | 12 Months Ended |
Dec. 31, 2017CNY (¥) | |
Bank and other loans [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [Line Items] | |
Balance balance | ¥ 56,732 |
Changes from financing cash flow | 7,450 |
Reclassified as part of the disposal group | (262) |
Foreign exchange movement | (119) |
Ending balance | 63,801 |
Obligations Under Finance Leases [member] | |
Disclosure of reconciliation of liabilities arising from financing activities [Line Items] | |
Balance balance | 61,041 |
Changes from financing cash flow | (10,587) |
Reclassified as part of the disposal group | (409) |
Foreign exchange movement | (2,362) |
New finance leases | 19,185 |
Ending balance | ¥ 66,868 |
Commitments - Summary of Capita
Commitments - Summary of Capital Commitments (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of capital commitments [Line Items] | ||
Capital commitments | ¥ 94,810 | ¥ 132,709 |
Aircrafts, engines and flight equipment, owned [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 87,030 | 123,019 |
Other property, plant and equipment [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 7,572 | 9,550 |
Investments [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | ¥ 208 | ¥ 140 |
Commitments - Summary of Aged A
Commitments - Summary of Aged Analysis of Contracted Expenditures for Aircraft, Engines and Flight Equipment (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of capital commitments [Line Items] | ||
Capital commitments | ¥ 94,810 | ¥ 132,709 |
Aircrafts, engines and flight equipment, owned [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 87,030 | 123,019 |
Aircrafts, engines and flight equipment, owned [member] | Less than 1 year [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 28,322 | 28,384 |
Aircrafts, engines and flight equipment, owned [member] | 1 to 2 years [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 27,516 | 32,306 |
Aircrafts, engines and flight equipment, owned [member] | In the third year [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 19,273 | 28,983 |
Aircrafts, engines and flight equipment, owned [member] | In the fourth year [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | 7,829 | 18,334 |
Aircrafts, engines and flight equipment, owned [member] | Over four years [member] | ||
Disclosure of capital commitments [Line Items] | ||
Capital commitments | ¥ 4,090 | ¥ 15,012 |
Commitments - Summary of Future
Commitments - Summary of Future Minimum Lease Rentals Under Operating Leases (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | ¥ 20,936 | ¥ 23,889 |
Aircraft Engines and Flight Equipment under Operating Leases [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 20,247 | 22,159 |
Aircraft Engines and Flight Equipment under Operating Leases [member] | Less than 1 year [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 3,048 | 3,814 |
Aircraft Engines and Flight Equipment under Operating Leases [member] | 1 to 2 years [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 2,559 | 3,124 |
Aircraft Engines and Flight Equipment under Operating Leases [member] | In the third to fifth years, inclusive [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 7,112 | 7,616 |
Aircraft Engines and Flight Equipment under Operating Leases [member] | Over 5 years [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 7,528 | 7,605 |
Land and Buildings [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 689 | 1,730 |
Land and Buildings [member] | Less than 1 year [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 332 | 362 |
Land and Buildings [member] | 1 to 2 years [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 164 | 225 |
Land and Buildings [member] | In the third to fifth years, inclusive [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | 156 | 411 |
Land and Buildings [member] | Over 5 years [member] | ||
Disclosure of maturity analysis of operating lease payments [Line items] | ||
Future minimum lease rentals under operating leases | ¥ 37 | ¥ 732 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - CNY (¥) ¥ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
China Eastern Air Holding Company [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Percentage of shares owned by related party | 35.06% | 35.06% |
Bonds guaranteed by CEA Holding | ¥ 7.8 | ¥ 7.8 |
CES Global Holdings (Hong Kong) Limited [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Percentage of shares owned by related party | 18.15% | 18.15% |
CES Finance Holding Co., Ltd. [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Percentage of shares owned by related party | 3.16% | 3.16% |
Related Party Transactions - Su
Related Party Transactions - Summary of Nature of Related Parties (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Eastern Air Group Finance Company [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Associate of the Company |
Eastern Aviation Import & Export Co., Ltd. [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Associate of the Company |
Shanghai P&W [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Associate of the Company |
Eastern Advertising [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Associate of the Company |
Collins Aviation [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Associate of the Company |
CAE Melbourne [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Joint venture of the Company |
Wheels & Brakes [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Joint venture of the Company |
Technologies Aerospace [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Joint venture of the Company |
China Kaiya [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Joint venture of the Company |
Shanghai Hute [Member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Joint venture of the Company |
CEA Development Co., Ltd. and its subsidiaries [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
China Eastern Air Catering Investment Co., Ltd. [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
CES International Financial Leasing Corporation Limited [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
Shanghai Eastern Airlines Investment Co., Ltd. [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
Eastern Airlines Industry Investment Company Limited [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | Controlled by the same parent company |
Travelsky technology limited [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | A director and vice president of the Company is a director of Travelsky |
China Aviation Supplies Holding Company and its Subsidiaries [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | A director and vice president of the Company is a director of CASC |
Air France-KLM Group [member] | |
Disclosure of nature of related parties [line items] | |
Relationship with the Group | A director and vice president of the Company is a director of AFK |
Related Party Transactions -216
Related Party Transactions - Summary of Related Party Transactions (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Eastern Air Group Finance Co., Ltd. [member] | Interest Income on Deposits [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | ¥ 29 | ¥ 23 |
Eastern Air Group Finance Co., Ltd. [member] | Interest Expense on Loans [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (2) | (10) |
China Eastern Air Holding Company [member] | Interest Expense on Loans [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (1) | (1) |
China Eastern Air Holding Company [member] | Land and Building Rental [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (54) | (54) |
Eastern Aviation Import & Export Co., Ltd. [member] | Handling Charges for Purchase of Aircraft, Flight Equipment, Flight Equipment Spare Parts, Other Property, Plant and Flight Equipment and Repairs for Aircraft and Engines [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (145) | (105) |
Eastern Aviation Import & Export Co., Ltd. [member] | Supply of logistics services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (87) | (72) |
Eastern Aviation Import & Export Co., Ltd. [member] | Supply of Food and Beverages [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (58) | (50) |
Eastern Aviation Import & Export Co., Ltd. [member] | Cargo Handling Income [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | 15 | |
Shanghai Eastern Union Aviation Wheels & Brakes Maintenance Services Overhaul Engineering Co., Ltd. [member] | Repairs and Maintenance Expense for Aircraft and Engines [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (152) | (176) |
Shanghai Technologies Aerospace Co., Ltd. [member] | Repairs and Maintenance Expense for Aircraft and Engines [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (276) | (252) |
Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. [member] | Repairs and Maintenance Expense for Aircraft and Engines [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (2,538) | (2,049) |
Shanghai Hute Aviation Technology Co., Ltd. [member] | Repairs and Maintenance Expense for Aircraft and Engines [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (60) | (84) |
Eastern Aviation Advertising Service Co., Ltd. [member] | Supply of Cabin Cleaning Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (22) | (21) |
Eastern Aviation Advertising Service Co., Ltd. [member] | Advertising Expense [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (23) | (36) |
Eastern Aviation Advertising Service Co., Ltd. [member] | Media Royalty Fee [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | 15 | 17 |
Eastern China Kaiya System Integration Co., Ltd. [member] | Supply of System Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (44) | (79) |
China Eastern Air Catering Investment Co., Ltd. [member] | Supply of Food and Beverages [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (1,254) | (1,054) |
CEA Development Co., Ltd. and its subsidiaries [member] | Supply of Food and Beverages [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (72) | (51) |
CEA Development Co., Ltd. and its subsidiaries [member] | Automobile Maintenance Service, Aircraft Maintenance, Providing Transportation Automobile and Other Products [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (68) | (86) |
CEA Development Co., Ltd. and its subsidiaries [member] | Equipment Maintenance Fee [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (53) | (11) |
CEA Development Co., Ltd. and its subsidiaries [member] | Property Management and Green Maintenance Expenses [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (75) | (59) |
CEA Development Co., Ltd. and its subsidiaries [member] | Supply of Hotel Accommodation Service [Member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (104) | (91) |
Shanghai Collins Aviation Maintenance Service Co., Ltd. [member] | Equipment Maintenance Fee [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (62) | (30) |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | Cargo Terminal Business Support Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (281) | |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | Bellyhold space management [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (117) | |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | Transfer of the Pilots [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (7) | |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | Freight logistics support services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | 100 | |
Shanghai Eastern Airlines Logistics Co., Ltd. and its Subsidiaries [member] | Bellyhold Container Management [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (9) | |
CES International Financial Leasing Corporation Limited [member] | Payments on Finance Leases [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (1,997) | (2,721) |
CES International Financial Leasing Corporation Limited [member] | Payments on Operating Leases [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (25) | |
Eastern Airlines Industry Investment Company Limited [member] | Disposal of a Subsidiary [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | 1,754 | |
Travelsky technology limited [member] | Civil Aviation Information Network Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (551) | (590) |
CAE Melbourne Flight Training Pty Ltd. [member] | Flight Training Fee [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (138) | ¥ (68) |
China Aviation Supplies Holding Company and its Subsidiaries [member] | Flight Equipment Spare Parts Maintenance [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (98) | |
Air France-KLM Group [member] | Payments on Aviation Transportation Cooperation and Support Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | (399) | |
Air France-KLM Group [member] | Aviation Transportation Cooperation and Support Services [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Income or receipts/(expense or payments) | ¥ 622 |
Related Party Transactions -217
Related Party Transactions - Summary of Balances with Related Parties (Detail) - CNY (¥) ¥ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of balances between related parties [line items] | ||
Trade and notes receivables | ¥ 195 | |
Amounts due from related parties | 569 | ¥ 616 |
Trade and bills payables | 241 | 232 |
Other payables and accruals | 2,111 | 2,534 |
Long-term borrowings (included in borrowings) | 24,711 | 27,890 |
Shanghai Eastern Airlines Logistics Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and notes receivables | 194 | |
China Eastern Air Catering Investment Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and notes receivables | 1 | |
Amounts due from related parties | 135 | 57 |
Trade and bills payables | 31 | 37 |
Other payables and accruals | 10 | 166 |
Eastern Aviation Import & Export Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 379 | 536 |
Trade and bills payables | 51 | 85 |
Other payables and accruals | 2 | 240 |
Shanghai Technologies Aerospace Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 10 | 16 |
Trade and bills payables | 105 | 45 |
Other payables and accruals | 1 | 29 |
Eastern Aviation Advertising Service Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 29 | |
Other payables and accruals | 2 | 18 |
CEA Development Co., Ltd. and its subsidiaries [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 2 | 2 |
Trade and bills payables | 25 | 19 |
Other payables and accruals | 50 | 72 |
China Eastern Air Holding Company [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 9 | |
TravelSky [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 5 | |
Others [member] | ||
Disclosure of balances between related parties [line items] | ||
Amounts due from related parties | 5 | |
Trade and bills payables | 1 | 4 |
Other payables and accruals | 3 | 5 |
Shanghai Collins Aviation Maintenance Service Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and bills payables | 1 | 2 |
China Eastern Air Holding Company [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and bills payables | ¥ 4 | ¥ 3 |
Long-term borrowings (included in borrowings) CEA Holding | 3.48% | 3.48% |
Other payables and accruals | ¥ 302 | ¥ 303 |
Long-term borrowings (included in borrowings) | 28 | 28 |
China Aviation Supplies Holding Company and its Subsidiaries [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and bills payables | 9 | 18 |
Shanghai Hute Aviation Technology Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Trade and bills payables | 14 | 19 |
Other payables and accruals | 11 | 20 |
Shanghai Pratt & Whitney Aircraft Engine Maintenance Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Other payables and accruals | 578 | 324 |
Shanghai Eastern Union Aviation Wheels & Brakes Maintenance Services Overhaul Engineering Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Other payables and accruals | 16 | 26 |
Travelsky technology limited [member] | ||
Disclosure of balances between related parties [line items] | ||
Other payables and accruals | 551 | 963 |
CAE Melbourne Flight Training Pty Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Other payables and accruals | 316 | 368 |
Shanghai Eastern Airlines Investment Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Other payables and accruals | 269 | |
CES International Financial Leasing Corporation Limited [member] | ||
Disclosure of balances between related parties [line items] | ||
CES Lease Company | ¥ 11,934 | ¥ 5,521 |
Eastern Air Group Finance Co., Ltd. [member] | ||
Disclosure of balances between related parties [line items] | ||
Short-term deposits (included in cash and cash equivalents) Eastern Air Finance Company | 0.35% | 0.35% |
Short-term deposits (included in cash and cash equivalents) | ¥ 4,053 | ¥ 1,296 |
Related Party Transactions -218
Related Party Transactions - Summary of Key Management Compensation (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of transactions between related parties [Line Items] | ||
Compensation paid or payable to key management for employee services | ¥ 9 | ¥ 6 |
Directors and Supervisors [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Compensation paid or payable to key management for employee services | 3 | 2 |
Senior Management [member] | ||
Disclosure of transactions between related parties [Line Items] | ||
Compensation paid or payable to key management for employee services | ¥ 6 | ¥ 4 |
Dividends - Summary of Dividend
Dividends - Summary of Dividends (Detail) - CNY (¥) ¥ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Dividends Paid [abstract] | ||
Interim -Nil (2016: RMB5.1 cents) per ordinary share | ¥ 738 | |
Proposed final -RMB5.1 cents (2016: RMB4.9 cents) per ordinary share | ¥ 740 | 709 |
Dividends | ¥ 740 | ¥ 1,447 |
Dividends - Summary of Divid220
Dividends - Summary of Dividends (Parenthetical) (Detail) - ¥ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Dividends Paid [abstract] | ||
Dividends per ordinary share | ¥ 0 | ¥ 0.051 |
Dividends proposed per ordinary share | ¥ 0.051 | ¥ 0.049 |
Events After the Reporting P221
Events After the Reporting Period - Additional Information (Detail) ¥ / shares in Units, ¥ in Millions, ¥ in Billions | Mar. 29, 2018CNY (¥)¥ / sharesshares | Mar. 19, 2018JPY (¥) | Dec. 31, 2017CNY (¥)¥ / sharesshares | Dec. 31, 2016CNY (¥)¥ / sharesshares |
Disclosure of Events After Reporting Period [Line Items] | ||||
Annual distribution in cash | ¥ 740 | ¥ 709 | ||
Share capital | shares | 14,467,000,000 | 14,467,000,000 | ||
Cash distribution per share | ¥ / shares | ¥ 0.051 | ¥ 0.049 | ||
Annual Profit Distribution [member] | ||||
Disclosure of Events After Reporting Period [Line Items] | ||||
Annual distribution in cash | ¥ 740.3 | |||
Share capital | shares | 14,467,585,682 | |||
Cash distribution per share | ¥ / shares | ¥ 0.051 | |||
Events after reporting period [member] | ||||
Disclosure of Events After Reporting Period [Line Items] | ||||
Principal amount of borrowing | ¥ 50 | |||
Interest rate of borrowing | 0.64% | |||
Borrowings maturity year | Through 2,021 | |||
Events after reporting period [member] | First series of JPY- denominated credit enhanced bonds [member] | ||||
Disclosure of Events After Reporting Period [Line Items] | ||||
Interest rate of borrowing | 0.33% |