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Hainan Airlines reports US$80 million first-half profit, eyes Virgin Australia sale
September 7th 2018
China’s Hainan Airlines Group has posted a first-half net profit of CNY548 million (US$80 million), a decline from the CNY1.15 billion attributable net profit reported in the same period last year. Read More »
The group’s operating profit to June 30 was CNY683 million, 55% lower than in the previous 12 months. Hainan Airlines Group’s interim revenue increased 16%, to CNY32.9 billion.
Jet fuel and financing costs were the group’s biggest operating expenses. Jet fuel accounted for 31% of expenditure and debt servicing expenses soared 58% year-on-year. Hainan Airlines Group recorded a foreign exchange loss of CNY244 million for the reported six months compared with a CNY570 million gain in the previous year.
At June 30, Hainan Airlines and its subsidiary carriers operated 420 aircraft. The group transported 39.3 million passengers over the first six months, 14.8% more than in first-half 2017. Cargo and mail volume jumped 16.2%, to 263,300 tons.
Announcing the interim results, Hainan Airlines Group named Liu Lu as new president, replacing Sun Jianfeng, who was designated a “controlling director” going forward. Chen Xiaofeng, the son of HNA Group co-founder Chen Feng, will reportedly become the new deputy CEO of HNA Group.
Separately, Bloomberg has said the group wants to sell its 19.2% holding in Virgin Australia Holdings to other shareholders of the Australian airline, including Singapore Airlines Group and Nanshan Capital. Singapore Airlines and Nanshan hold approximately 20% each in Virgin Australia.
