Hainan Airlines Sees Net Profit Plunge 208% For 2018

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.

Hainan Airlines also operates a large fleet of Boeing 787 dreamliners.

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.

Follow us on:

  • Instagram
  • Twitter
  • YouTube

Popular articles:

Boeing 777X Completes Maiden Flight

Boeing’s newest and most ambitious project of revamping the already popular 777 family has taken to the skies and successfully completed its first ever flight, on January 25, 2020.