China Southern’s 2014 annual revenue up 10.38% while profits continue slide
China Southern is the only one one of the five major listed Chinese carriers with decreasing profitability. Its decline has lasted for two years.
China Southern Airlines reported RMB108.313 billion (approx: US$17.5 billion) annual revenue in 2014, up 10.38% y-o-y. Net profit attributable to equity holders of the listed company totaled RMB1.773 billion (approx: US$286 million), down 6.44% y-o-y, according to its 2014 annual fiscal report.
China Southern is one of the five major listed Chinese carriers and the only one with decreasing profitability. Its decline has lasted for two years, net profit attributable to shareholder profit plunged 27.89% y-o-y to RMB1.895 billion (approx: US$306 million) in 2013. Operating profit for 2014 at RMB405 million (approx: US$65 million) was down 71.38% y-o-y. In its fiscal review China Southern blamed this on higher exchange rates of the RMB against foreign currencies such as US dollar leading to higher financing costs.
Domestic services made up 76% of China Southern’s main operational revenue, which grew 10.5% y-o-y, and international operations grew the fastest at 20.46% y-o-y. With the largest fleet in Asia, China Southern carried 100 million passengers/trips last year, 9.94% more than the year before, with load factor of 79.4%, down 0.05% y-o-y.(Translation by David)