China Southern makes stunning turnaround in profit
China Southern Airlines has made more in the first quarter of this year than the whole of last year, reporting estimated net profits of RMB1.8-2 billion for Q1.
China Southern Airlines has made more in the first quarter of this year than the whole of last year, reporting estimated net profits of RMB1.8-2 billion (approx: US$291 million- 323 million) for Q1, against RMB1.773 billion (approx: US$286 million) for the whole year last year. The Q1 earnings represent a major turnaround from the loss of RMB306 million approx: US$49 million) in the same period last year.
China Southern believed the turnaround was a result of boosted civil aviation demand driven by the “one belt, one route” government policy as well as lower fuel and operational costs.
China Southern’s base Guangzhou is a starting point of the government designated “maritime silk route”. A director of the carrier’s division in charge of business transitioning said that China
Southern has already developed a relatively complete air route network under the “one belt, one route” policy， linking Southeast Asia, the South Pacific and Central West Asia. “Our network leads the Chinese aviation market in the flight frequency and destinations in these regions,” he claimed.
Another hub of China Southern, Urumqi, is located in the center of the “silk route economic belt”. The carrier’s Xinjiang regional director Puyan Fu said the carrier has 16 international air routes linking Xinjiang with Central West Asia, South Asia and Europe, and the international capacity deployed for Xinjiang increased 42% last year.(Translation by David)