China Southern Airlines sees 'challenges as well as opportunities' in 2012
China Southern Airlines stated (20-Apr-2012) it "see challenges as well as opportunities" in the outlook for 2012, although "opportunities prevail". The carrier noted the international economy is "still affected by the European debt crisis", "the recovery of world economy is still predictable" and the "current PRC economic growth is slowing down", although the local economy is expected to maintain steady growth during 2012. [more - original PR] [more - CAPA Analysis]
China Southern Airlines: "Along with the sluggish economy in developed economies and the domestic macro control measures, domestic economic activities will be hampered and economic growth in the PRC is expected to slow down. Affected by the overall economic condition, the 2012 international aviation market will be relatively weak with anaemic growth, and cargo transport market will also remain depressed. Though the domestic passenger aviation market will continue to grow due to the economic environment in China, the growth rate is expected to slow down. Furthermore, the domestic aviation industry is also facing challenges arising from the faster growing transportation capacity and intensified market competition, so further increase in the passenger revenue will be affected. Due to the factors including the easing monetary policies in major economies and geopolitical tensions, the international oil prices may remain high, which will exert greater pressure on the profits of the aviation industry in 2012. Compared with 2011, the pace of the appreciation of RMB against the US$ will be less impressive in 2012, and the exchange gain for the aviation industry will also decline." Source: Company statement, 20-Apr-2012.