Spring Airlines profits double in 1H2010, on track for 2011 IPO
Spring Airlines reported a doubling in revenue and profits in 1H2010, which the carrier attributes to “significantly” lower costs than competitors (Shanghai Daily/CAAC-News, 23/22-Jul-2010). According to Spring, its fares are 30% lower than its domestic counterparts while its load factor is 18 ppts higher. The LCC, which has reported profits since its launch in 2005, reported the following financial highlights during the period:
- Revenue: USD215.2 million, +60% year-on-year;
- Profit: USD23.4 million, +288.6%.
*Based on the conversion rate at USD1 = CNY6.83
Spring Airlines spokesperson, Zhang Wuan stated the carrier is on track to launch an IPO in Mainland China next year to fund fleet expansion plans, targeting 100 aircraft by 2015. Spring is scheduled to take delivery of its 21st aircraft in Aug-2010, accelerating to one new aircraft per month from 2011. Meanwhile, Spring is scheduled to launch its first international route, from Shanghai to Ibaraki Airport (near Tokyo) with A320 equipment on 28-Jul-2010. The carrier added it will target expansion in Korea and Southeast Asia next.