Hainan Airlines (HU) reported a net profit of CNY2.63 billion ($415.9 million) in 2011, down 12.7% compared to CNY3.01 billion in 2010, due to high fuel prices.
Operating revenue climbed 21% to CNY 26.27 billion while expenses jumped 26% to CNY19.5 million.
Passenger boardings rose 9.98% to 20.49 million with an average load factor of 84.2%, up 3.01 points over the prior year. Cargo traffic volume grew 3.36% to 292,000 tonnes.
In 2011, the Haikou-based carrier took delivery of 14 aircraft and phased out three aircraft. HU operated 108 aircraft, comprising six Boeing 737-300s, eight 737-400s, three 737-700s, 75 737-800s, three 767-300s, six Airbus A330-200s, four A330-300s and three A340-600s.
Looking ahead, the carrier said it expects to take advantage of the Chinese economy’s stable growth and yuan appreciation, as well as “more favorable policies for the domestic airline industry” and Beijing’s strategy of “building Hainan as international tourism island.”
The company warned that increasing fuel expenses, rising interest rates, continuing construction of the high speed rail and growing market competition remains challenging.
HU chairman Chen Feng said it is considering transforming its subsidiary, Hong Kong Express Airlines, into a low-cost carrier (LCC) since barriers have been removed for domestic carriers to enter the LCC market. China Eastern Airlines and Qantas Group are planning to launch a LCC, Jetstar Hong Kong, in 2013.
Article Source : ATW Daily News
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