Hainan Airlines sees net income down 25% in H1 of 2012

Hainan Airlines reported a first-half net income of CNY249.9 million ($39.4 million), down 25% over the net profit of CNY417.3 million forthe year-ago period.

The Haikou-based carrier cited the slowdown of domestic market demand, high fuel prices and the slowdown of yuan appreciation as the main reasons for the results.

Operating revenue climbed 20% to CNY13.89 billion against an increase of 20.4% in operating expense to CNY10.52 billion.

Passenger boardings jumped 14.89% to 11 million with an average load factor of 83.7%, up 0.05 points over the year-ago period. Cargo traffic volume increased 4.8% to 138,500 tonnes.

All Chinese major carriers have seen first-half profits decline.

Air China has reported a first-half net profit of CNY945 million, down 76.7% over a net income of CNY4.056 billion for the year-ago period (ATW Daily News, Aug. 29). China Southern Airlines has reported a first-half net profit of CNY449 million, down 83.7% compared to a net income of CNY2.75 billion in the year-ago period (ATW Daily News, Aug. 28). China Eastern Airlines reported a net income of CNY 806.9 million in the first half of this year, down 64.6% over a net profit of CNY 2.28 billion year-over-year.