Air China (CA) reported a net profit of CNY7.082 billion ($1.12 billion) for 2011, down 41% from CNY12 billion in the year-ago period.
Operating revenue climbed 19.3% to CNY 98.41 billion while operating expenses jumped 29% to CNY92.15 billion due to rising fuel expenses, which increased by 44% to CNY34.7 billion.
The carrier also cited “intensified domestic and international competition” that led to the “continuing recession in the international air passenger market and significant decline in air cargo operations” as reasons for the decline.
RPKs climbed 16.85% to CNY123. 5 billion against a lift of 14.8% in ASKs to 151.59 billion. Passenger boardings rose 16.14% to 69.69 million with an average load factor of 81.5%, up 1.4 points over 2010. RFTKs increased 0.14% to 4.8 billion while AFTKs grew 4.22% to 8.2 billion. CA didn’t reveal the figure for cargo traffic volume.
In 2011, CA introduced 57 aircraft and phased out 20 aircraft. As of Dec. 31, 2011, the Beijing-based carrier’s fleet comprised 288 aircraft with the average age of 6.77 years.
Looking ahead, CA chairman Wang Changshun expects a “tougher 2012” owing to weak economic growth in US and Europe, acceleration of Chinese economic structural adjustment and shortages of various resources, including airspace, slots, infrastructure and higher costs pressure, although China still maintains stable growth to provide new opportunities for the domestic airline industry.
Article Source : ATW Daily News
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