Air ChinaAIRYY 69 Interest Coverage is 1.22 as of Mar. 2026, which is 71% below its 10-year median of 4.18. GuruFocus rates AIRYY with a GF Score™ of 69/100 and a GF Value™ of $15.92 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 845 Transportation companies, Air China ranks worse than 96.21% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Air China's
Operating Income
for the
three
months ended in Mar. 2026 was $215 Mil. Air China's Interest Expense for the
three
months ended in Mar. 2026 was $-176 Mil.
Air China's interest coverage for the quarter that ended in Mar. 2026 was 1.22.
The higher the ratio, the stronger the company's financial strength is.
Warning Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Air China Ltds earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.
The historical rank and industry rank for Air China's Interest Coverage or its related term are showing as below:
AIRYY'
s Interest Coverage Range Over the Past 10 Years
Min: 0.05 Med: 4.18 Max: 4.81
Current: 0.58
AIRYY's Interest Coverage is ranked worse than 96.21% of 845
companies
in the Transportation industry
Industry Median: 5.66
vs AIRYY: 0.58
Air China (OTCPK:AIRYY) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Air China Interest Coverage Related Terms
Air China Interest Coverage Historical Data
* Premium members only.
The historical data trend for Air China's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
AIRYY vs DAL, UAL, LUV: Interest Coverage Comparison
For the Airlines subindustry, Air China's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Air China Interest Coverage vs Transportation Industry
For the Transportation industry and Industrials sector, Air China's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Air China's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Air China (AIRYY) has a Interest Coverage of 1.22 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air China and its competitors. This is 71% below median its historical median of 4.18. Over the past decade, Air China's Interest Coverage has ranged from 0.05 to 4.81. According to the industry distribution chart, Air China ranks #813 out of 845 companies in the Transportation industry, placing it in the top 96.2%.
Is Air China's Interest Coverage too high?
Air China's current Interest Coverage of 1.22 is 71% below median its 10-year median of 4.18. Over the past 10 years, this metric has ranged from a low of 0.05 to a high of 4.81. The Transportation industry median Interest Coverage is 5.66. Air China's value of 1.22 is 78.4% below this industry median. Based on the distribution chart, Air China ranks #813 out of 845 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Air China has a GF Score™ of 69/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Air China's Interest Coverage compare to DAL and UAL?
According to the Transportation industry distribution chart, Air China ranks #813 out of 845 companies for Interest Coverage. This places Air China in the lower half of its industry. The industry median Interest Coverage is 5.66. Air China's value of 1.22 is 78.4% below this benchmark. Historically, Air China's own Interest Coverage has ranged from 0.05 to 4.81 over the past decade. While the company's 10-year median is 4.18 vs. the industry median of 5.66, Air China has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Transportation company?
The median Interest Coverage among Transportation companies is 5.66, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Air China's current Interest Coverage of 1.22 is 78.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Air China and its competitors. For the Transportation industry, the median Interest Coverage is 5.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Air China's current Interest Coverage is 1.22, which is 71% below median its own 10-year median of 4.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Air China stock overvalued right now?
Based on GuruFocus' analysis, Air China (AIRYY) is currently considered Possible Value Trap. The stock's GF Value™ is $15.92, compared to a current price of $10.40 — trading 34.7% below its estimated fair value. The current Interest Coverage is 1.22, which is 71% below median its 10-year median of 4.18 and 78.4% below the Transportation industry median of 5.66. Air China's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Air China (AIRYY), the current Interest Coverage is 1.22 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Air China (AIRYY) Overvalued in 2026?
Based on GuruFocus' analysis, Air China stock appears to be undervalued.
The current stock price of $10.40 is trading 34.7% below its estimated GF Value™ of $15.92.
GuruFocus considers Air China to be Possible Value Trap.
Key valuation signals for AIRYY:
Interest Coverage: 1.22 (71% below median its 10-year median of 4.18)
GF Value™: $15.92 vs. price of $10.40 (34.7% below fair value)
Industry Position: 78.4% below the Transportation median (#813 of 845)
No single metric tells the full story. See the AIRYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Air China Ltd is based in Beijing and principally provides airline and related services, which include aircraft engineering and airport ground handling. The majority of the company's revenue comes from airline operations, with a smaller portion generated from rental income. Company has two segments (a) The airline operations segment which mainly comprises the provision of air passenger and air cargo services; and (b) The other operations segment which comprises the provision of aircraft engineering and other airline-related services. Geographically, majority of its revenue is derived from Mainland China followed by International segment and Hong Kong SAR, Macau SAR and Taiwan.
69GF Score
Get the complete analysis for AIRYY
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