Chinese carriers are expected to report big profit increases for 2015, mainly due to robust market demand growth and lower fuel prices.

China Southern Airlines said in a written statement released by the Shanghai Stock Exchange that it estimates its net income to jump 110%-130% for 2015 compared with a net profit of CNY1.77 billion in 2014. The carrier cited the rapid increase of market demand—especially since international routes have become a new growth point—and lower fuel prices as main reasons for the projected profit increase.

Air China predicted its net profit would jump 60%-80% for 2015 over a net income of CNY3.78 billion in 2014. The Beijing-based carrier also credited fast market demand growth, capacity increases, a boost in the direct sale of air tickets, effective cost-control measures, and lower fuel prices as main contributors.

Chinese privately run carriers, Spring Airlines and Juneyao Airlines, also made similar predictions.

Spring Airlines said in a filing that its net income would increase 50%-60% for 2015 over a net profit of CNY884.2 million in 2014.The low-cost carrier also cited  lower fuel prices and market demand growth as reasons for the projected results, but also credited international routes revenue improvement and ancillary revenue growth.

Juneyao also predicts its net income will increase 130%-160% for 2015 compared with a net profit of CNY427.68 million in 2014.The carrier also contributed market demand growth and lower fuel prices for the improvement.

Source: ATWOnline

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