16-Apr-2010 9:28 AM

Hainan Airlines returns to net profit in 2009, sees strong growth in 2010

Hainan Airlines reports (16-Apr-2010) the following financial/traffic highlights for the 12 months ended 31-Dec-2009:
  • Revenue: USD2,276 million, +14.7% year-on-year;
  • Operating profit: USD71.1 million, compared to a loss of USD223 million in the corresponding period last year;
  • Net profit: USD49 million, compared to a loss of USD207 million in the corresponding period last year.
  • Passenger numbers: 17.4 million, +21.2%;
  • ASK: +29%;
  • RPK: +28.4%;
  • Passenger load factor: 78%, -0.48 ppts;
  • Cargo volume: 236,000 tonnes, +26.5%.
Outlook 2010:
  • Opportunities:
    • Passenger demand is expected to grow strongly in 2010 with the global economic recovery. Total demand growth for Chinese civil aviation is expected to exceed 10% in 2010;
    • Chinese government aims to build the southern island of Hainan into a leading international tourism destination, which will provide more opportunities for Hainan Airlines;
    • Slight appreciation of yuan would help the company cut costs.
  • Challenges:
    • Fuel price is likely to go up in line with the global economic recovery;
    • Interest rates are also expected to increase in 2010;
    • Chinese government's long-term plan to develop high-speed rail will intensify competition with air travel in the future.

2010 targets:

  • Passenger numbers: 19.35 million, +11%;
  • Cargo volume: 255,300 tonnes, 8.2%;
  • Net profit: USD117 million (CNY80 million).

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More