Hainan Airlines’s net profit increases 9.2% in 2013

China’s Hainan Airlines has reported a net income of CNY2.1 billion ($337 million) for 2013, up 9.2% over the net profit of CNY1.9 billion in 2012.

According to the Haikou-based carrier’s filing released by the Shanghai Stock Exchange, operating revenue rose 4.71% to CNY30.23 billion on operating costs that rose 9% to CNY23.5 billion. Industry analysts credited “exchange gains resulting from the yuan appreciation” as the main contributor to the improved performance.

Hainan noted it experienced “a rapid growth of air traffic volume” last year, but said “the worsening external operating environment” and “slowdown of China’s economic growth” hampered revenues. The carrier’s mainline revenue from air transport operation grew only 2.37% to CNY27.51 billion.

Passenger boardings increased 16.4% to 26.2 million with an average load factor of 86.4%, improving two percentage points over the prior year.

Cargo traffic volume increased by 7% to 313,300 tonnes.

Last year, Hainan introduced 27 aircraft and phased out 13 aircraft, leaving a fleet of 131 aircraft comprising of six Airbus A330-200s, seven A330-300s, three Airbus A340-600s and one A330-VIP; plus one Boeing 737-400, five 737-500s, 99 737-800s, three Boeing 767-300s, six Boeing 787-800s.

Looking ahead, the company expects the air transport market to continue to grow, especially in China’s less-developed cities and it believes domestic airports expansion projects will “bring new opportunities”. But domestic low cost carriers will “exert some impact” on traditional legacy carriers although they have become “new growth points” for China’s airline industry.

SOURCE: atwonline.com