Hainan Airlines sees H1 profit drop on poor subsidiary performance
Hainan Airlines reported a net profit of CNY 1.2 billion (USD 17 million) for the 2017 first half, down 31% over net income of CNY 1.7 billion for the same period last year.
According to a filing to the Shanghai Stock Exchange, Hainan’s subsidiary Tianjin Airlines saw a 42% profit decline to CNY 84 million after operating expenses jumped 70.5% to CNY 12 billion in the first quarter.
In February, Hainan Airlines completed the acquisition of a 48.2% stake in Tianjin Airlines, making Hainan the controlling stakeholder in the Tianjin-based carrier with an 87.3% stake.
Hainan Airlines’ 1H operating revenue jumped 50.2% to CNY 28.5 billion while operating expenses increased 75.3% to CNY 24.6 billion.
Passenger boardings grew 53.3% to 34.2 million with an average load factor of 86.7%, down 1.5 points over the year-ago period. Capacity rose 53% to 67.1 billion ASKs against an increase of 50.4% in passenger revenue to 58.2 billion RPKs. Cargo traffic volume rose 11.6% to 224,082 tonnes.
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