As reported by Xinhua, China's fourth largest carrier, Hainan Airlines, said yesterday that its net profit quadrupled last year. Net income reached 651 million yuan, up from 166 million yuan in 2006, read the statement from the Shanghai Stock Exchange. Despite the recent downturn in Chinese equity markets, where stocks have plummeted from their all time high in October and benchmark indicies lost about 30% of the cumulative gains, Hainan Airlines benefited from a booming demand in domestic air transport and a stronger yuan.
China has the world's second largest air transport network after the United States. Whereas the airline garnered 11.3 billion yuan from 14.5 million passengers last year (an 8% domestic market share), cargo volume decreased by 0.5% to 197,800 tons. Thanks in part to the Beijing Olympics, Hainan Airlines has done better than most analysts anticipated. The carrier added 8 aircrafts to its fleet last year, bringing the total to 66, and anticipates adding a further 17 this year, including 10 Boeing 737-800s.
Comment Preview