Airline News
More Mainland airlines report record profits
August 31st 2015
Adding to the significant profits recorded at China Eastern Airlines and Hainan Airlines, Air China last Thursday posted a first-half net profit of 3.9 billion yuan ($610 million), up 721% from the 474 million yuan it reported in the year-ago period. Read More » Load factor dropped 0.72% during the first half, to 79.9%. Air China said it grew its revenue in all segments of the business except the regional Hong Kong, Macau and Taiwan markets. They declined 8.1%.
At Juneyao Airlines in Shanghai, net profit increased 158%, to 502.6 million yuan ($82 million) during the first-half on 20% revenue and 27% passenger growth. Specifically, Juneyao’s domestic and international boardings were up 23% and 96%, respectively, but just like at Air China, the regional market was down 24%. Load factor during the period stood at 87.6%.
Low-cost carrier Spring Airlines last week posted a net profit of 619.5 million yuan ($97 million) for first-half 2015, up 129% year-on-year, on a 15% revenue increase and 2.8% less costs. It increased its load factor by 1% to an impressive 94%. Looking ahead, Spring said it expected to carry 13.6 million passengers this year as it adds destinations, including Nagoya, Jeju and other neighbouring Asian cities from its bases at Shanghai’s Hongqiao, Shenyang, Shijiazhuang and Shenzhen. Mainland carriers are benefiting from low fuel prices after ridding themselves of hedging policies after significant hedging losses in the past.
