Airline News
Mainland carriers report 2014 figures, Delta eyes Shanghai hub
April 13th 2015
Following Hainan Airlines’ 20% profit boost report last month, China’s “Big Three” have announced their results for 2014. Air China and China Eastern Airlines had a good year, while at China Southern Airlines exchange losses contributed to a significant profit drop. Read More »
Beijing-based flag carrier, Air China, posted a net income of 3.82 billion yuan ($622.6 million) in 2014, up 17% year-on-year, with the carrier citing “sustained growth of international air passenger market … steady recovery of [the] air cargo market … [and] lower fuel price[s]” as the main reasons for its improved performance. Load factor during the year decreased 0.93 points, to 79.9%. At China Eastern in Shanghai, the Skyteam alliance carrier improved its bottom line by 45% year-on-year, to 3.42 billion yuan, due to “robust domestic demand”. Its load factor was up 0.34 points, to 79.6%. Guangzhou-based China Southern fared the worst among the three, reporting a 6.4% profit drop in 2014 to a net profit of 1.8 billion yuan as fierce competition, including high-speed rail, and exchange rate losses ate away at its earnings. Llooking ahead, China Southern expected “stable growth of domestic market demand”, yet cautioned competition would intensify and airfares would remain low.
In other news, outspoken Delta Airlines chief, Richard Anderson, told employees that in the long term, “[Delta] needed to have a hub in Shanghai like the one [it] has in Amsterdam,” building on the growing relationship it has with China Eastern. Delta will start a daily Shanghai – Los Angeles B777LR flight from July, in addition to its existing services to Shanghai from Seattle and Detroit. The Atlanta-headquartered carrier operates a hub in Tokyo (Narita) and recently won a U.S. federal case which will allow it to retain rights to a Seattle – Haneda slot pair if it operates the route daily. American Airlines and Hawaiian Airlines had filed formal complaints with the Department of Transportation about the Delta slot.
