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).