5 star Chinese carrier, Hainan Airlines, has reported a massive loss for 2018 citing increased competition as the main issue. The airline is one of the best in China, a region which is expected to see a massive increase in demand for air travel over the next few years.
Despite operating revenue rising by 13.1% to CNY59.9 billion, Hainan Airlines reported an operating loss of CNY5.1 billion as a result of 30% higher costs and, as mentioned, increased competition. Overall financial expenses rose by 202.3% year on year to CNY6.37 billion.
The airline reported a net loss of CNY3.6 billion compared to a net profit of CNY3.3 billion from 2017 showing net profit plunging by 208%.
Separately however, Hainan Airlines and its subsidiaries reported that passenger numbers rose by 11.4% year on year to 79.88 million. Load factor stood at a modest 84.5% for 2018. At the end of the year, the Hainan Airlines group had a fleet of 463 aircraft.
For the first quarter of 2019, Hainan Airlines reported a net profit of CNY1.14 billion which is 14.8% lower than the results from the same period last year. However, revenue was up by 10.9% to CNY18.6 billion.
Hainan Airlines is China’s forth largest airline in China and the biggest civilian-run air transport company in the world. Rated 5 stars by Skytrax, Hainan Airlines operates both domestically as well as internationally.