Spring Airlines 2010 profits surge 240%
Spring Airlines reported a 240% year-on-year increase in profit to CNY470 million (USD71.3 million) in 2010, on the back of a 62% surge in operating revenue to CNY4320 million (USD655.5 million) a result which Chairman Wang Zhenghua attributes primarily to the rapid recovery in China’s domestic air travel market, particularly during the Shanghai World Expo (Yicai, 14-Jan-2011). The LCC reported an average load factor above 95% on domestic routes during the year while the average load factor on its international routes to Hong Kong and Ibaraki were between 90% and 95%. Looking ahead, Mr Wang warned that the air travel market in China in 2011 will not be as good as 2010 adding he expects the carrier’s profit in 2011 to be in line with 2010, despite a 30% to 40% increase in capacity. Spring Airlines plans to continue to expand its international route network to Macau, Taiwan, other Southeast Asian destinations and other cities in Japan this year, subject to CAAC approval.