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Air China “can’t be certain of profit” in 2009

20-Mar-2009

Air China Chairman, Kong Dong, stated the carrier “can’t be certain of profit” in 2009, stating the Chinese aviation industry is experiencing its worst ever Winter, characterised by significant cargo traffic declines, with no signs of improvement in the global economy. Mr Kong added, "it is difficult to be optimistic about this year," despite Air China having the healthiest balance sheet of the country’s three major Chinese airlines. [2089 words]

Unlock the following content in this report:

Subheadings:

  • Reports significant hedging losses in 2008
  • Some relief from jet fuel price reductions
  • International passenger number slump continues: no end in sight
  • Across-the-board declines in cargo traffic and load factors in Jan/Feb
  • Revenue growth in Jan/Feb-09
  • Requests Government cash Injection
  • To seek compensation for B787 delays
  • Major domestic consolidation activity expected to stall in 2009
  • Plans to suspend loss-making domestic routes; all international routes profitable
  • Looking to diversify operations
  • Establishes Shanghai branch company

Graphs and data:

  • Air China passenger numbers growth vs cargo volume growth: Feb-08 to Jan-09
  • North Asia airlines fuel hedging mark to market losses: As at 31-Dec-08
  • Sensitivity analysis on fair value of fuel hedging contracts
  • Air China highlights for Jan-2009 and Feb-2009 (combined)
  • Air China domestic and international passenger numbers growth: Mar-08 to Feb-09
  • CAAC, Air China, China Eastern and China Southern passenger numbers growth: Mar-08 to Feb-09
  • Air China passenger load factor: Mar-08 to Feb-09
  • Air China passenger numbers growth vs cargo volume growth: Mar-08 to Feb-09
  • Air China fleet composition and plans: Mar-2009
  • Air China capacity by market (seats per week as % of total)
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