Thursday, March 26, 2015

Spring Airlines’ net profit up nearly 21% in 2014

Spring Airlines Airbus A320-214 (c/n 4331) B-6705 taxies at Hong Kong International (Chek Lap Kok) (HKG/VHHH) on February 27, 2015.
(Photo by Robbie Shaw)

Spring Airlines reported a net profit of CNY884.2 million ($144 million) in 2014, up 20.8% over a net income of CNY732.2 million in 2013.

Full-year operating revenue jumped 11.6% to CNY7.32 billion while operating expenses rose 9.3% to CNY6.24 billion.

The Shanghai-based low-cost carrier credited lower fuel prices and domestic market growth as the main reason for the improved performance.

Passenger boarding's increased 8.5% to 11.5 million with an average load factor of 93%.

Spring, which has an all-Airbus A320 fleet, took delivery of seven of the type last year, expanding its fleet to 46.

Looking forward, Spring plans to introduce 14 more A320s and expand its fleet to 60 at the end of 2015 and to 100 by 2018.The carrier is targeting 3.6 million passengers in 2015.

Spring predicts China’s economic growth will continue, which will enable it to continually expand.  It plans to add Shenzhen as another hub in the South China to further explore the international market in Japan, Korea and other northeast Asian countries this year.

However, carrier warns that “challenges still remain, which include possible slowdown of domestic economic growth, fluctuation of fuel price, pilots shortage, and increasingly fierce competition from other domestic peers and high-speed rail.

(Katie Cantle - ATWOnline News)

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