Air China most profitable airline in the world
April 4, 2011 Category Travel, Weekly
Air China emerged as the most profitable airline in the world last year, narrowly beating strategic partner Cathay Pacific Airways, after the Chinese flag carrier reported a net profit of CNY12 billion, up 147.3% from 2009. Turnover rose 60.5% to CNY82.49 billion. Profit also included a CNY500 million contribution from Shenzhen Airlines, whose figures were consolidated in the Air China figures from last April. Chairman Kong Dong said that since January, “operating conditions still improved compared with last year”. He said more wide-bodied aircraft, with a higher passenger- and cargo-carrying capacity, would enter service this year while more destinations and increased frequencies would also be added. The aircraft include five Airbus A330s and four Boeing 777s which can carry between 251 and 345 passengers, while a further six A330s and six 777s would be added in 2012. Overall, 109 new aircraft would be delivered to Air China between now and 2013 compared with the existing fleet of 282 jets. Deputy General Manager Zhu Songyan said the new destinations would include Dusseldorf and Milan from Beijing starting in May. Older, less fuel-efficient aircraft, including early models of the Boeing 737, have been retired. Fan Cheng, Vice President and Chief Financial Officer, said CNY23.6 billion would be spent by Air China on capital expenditure this year, of which 86% was earmarked for aircraft, compared with CNY18 billion in 2010. He said 80% of the higher fuel cost was recouped from surcharges. Jet fuel costs soared 66.6% to CNY24.1 billion last year and accounted for 33.7% of operating expenses.
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