China Eastern forecasts tough 2011
China Eastern Airlines has forecast that a number of challenges in 2011, including the slow pace of global economic recovery, higher oil prices, a lack of airspace resources, the competitive challenges from China's express passenger railway network, the trend towards oligopoly and forging of alliances in international markets will affect its 2011 results.
The carrier reported an 89% increase in revenue in 2010, with net profit of USD755.3 million for the year, making it one of the world's most profitable carriers.
China Eastern Airlines financial highlights for the 12 months ended 31-Dec-2010:
- Revenue: USD11,244 million, +89.3% year-on-year;
- Total operating costs: USD10,476 million, +78.8%;
- Operating profit: USD867.9 million, +212.8%;
- Profit before tax: USD825.4 million, +2074%;
- Government grants: USD100.3 million, -48.9%;
- Net profit: USD755.3 million, +2838%;
- Passenger numbers: 64.9 million, +47.4%;
- Passenger load factor: 78.0%, +5.8 ppts;
- Passenger yield: USD 9.60 cents, +16.7%;
- Cargo volume: 1.5 million tonnes, +55.2%;
- Cargo yield: USD 29.71 cents, +16.8%;
- 2011 forecast:
- Traffic volume: 13,880 million tonne km;
- Passenger numbers: 70.9 million;
- Cargo volume: 1.6 million tonnes.
*Based on the conversion rate at USD1 = CNY6.564
Shares in China Eastern Airlines were up 3.1% in a mixed day of trading for Chinese carriers. Air China and China Southern shares were stronger, but Hainan Airlines shares were down 1.5% and Shandong Airlines shares slipped 3.7%.
Garuda Indonesia's Citilink business unit announced will operate up to six A320 aircraft in 2011. Shares in Garuda Indonesia rose 3.8% in trading.
Selected Asia Pacific airlines daily share price movements (% change): 30-Mar-2011
