Hainan Airlines reports 2016 net income up 4.5%

China’s Hainan Airlines (HNA) reported a net income of CNY3.1 billion ($446 million) for 2016, up 3.3% over a net profit of CNY3 billion in 2015.

The carrier cited continuous domestic market demand growth and rapid international expansion as main reasons for the profit increase.

Operating revenue for the year jumped 15.5% to CNY40.7 billion, while operating expenses were up 21.9% to CNY31.4 billion.

Last year, the Haikou-based carrier opened 42 international routes, comprising 20 long-haul intercontinental and 22 international routes. HNA operated 238 aircraft with an average fleet age of 4.6 years.

Passenger capacity grew 25.7% 94.4 billion ASKs against a 25.2% increase in passenger revenue to 83 billion RPKs. Passenger boardings rose 21.8% to 47 million with an average load factor of 87.8%, down 0.36 point.

Cargo traffic volume was up 5.9% to 407,366 tonnes.

Looking ahead, the carrier predicts stable domestic market demand growth and rapid international market demand growth, but warned the pace would slow down. HNA also said challenges remain, including macro economy risks, exchange rate and fuel price fluctuations and market competition.

Source: Air Transport World/  April 2017

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