Air China profit down 26.5% to CNY5.17bn
The airline posted passenger load factor at 84.65% up 2.21 percentage points compared with the same period in 2010.
Air China Limited (“Air China”), announced Thursday its results1for the third quarter of 2011.
The Chinese economy has been growing steadily during the third quarter of 2011 and the impact of the high-speed railways on air travel was less than expected. The domestic airline industry has maintained its growth momentum. However, the impact of the ongoing economic instability in Europe and the US and fluctuations in oil prices have slowed down the growth of international traffic and cargo business. During the Period, the Group's operating revenue was RMB28.14 billion, an increase of 13.36% year-on-year. Operating profit decreased by 20.81% compared with the same period in 2010 to RMB5.41 billion. Net profit reached RMB3.80 billion, a drop of 26.46% compared with a net profit of RMB5.17 billion in the same period of 2010.
During the Period, passenger capacity, measured by Available Seat Kilometer (“ASK”), rose by 6.10% year-over-year to 39.36 billion. Passenger traffic measured by Revenue Passenger Kilometers (“RPK”) was 33.31 billion, up 8.94% from the same period in 2010. Passenger traffic or RPK on international, domestic and regional routes increased by 7.45%, 9.48% and 10.81% year-on-year to 9.61 billion, 22.31 billion and 1.39 billion respectively. The passenger load factor was 84.65%, an increase of 2.21 percentage points compared with the same period in 2010. The load factor for international, domestic and regional routes was 83.44%, 85.61% and 78.30% respectively, representing an increase of 0.65, 2.98 and 1.24 percentage points year-over-year respectively.
During the Period, cargo capacity as measured by Available Freight Tonne Kilometers (“AFTK”), increased by 1.58% year-on-year to 2.05 billion. Cargo traffic as measured by Revenue Freight Tonne Kilometers (“RFTK”), declined by 1.63% to 1.23 billion. The cargo and mail load factor was 59.80%, a decline of 1.95 percentage points year-on-year, according to Air China report.
Mr. Kong Dong, Chairman of Air China said, “The slowing down of global economic growth, high oil prices, tight aviation resources for flight slots and routes and competition from high speed railways have created immense pressure for the Company. However, the steady growth of the Chinese economy should continue to boost domestic consumption power. Thus, China will remain as an aviation market with one of the fastest growth rates in the world. Looking ahead, we will continue to adhere to the set strategies and enhance our competitiveness in domestic and international markets and achieve sustained development in the future.”