Source: ATW Daily News Author: Katie Cantle 05/01/2009
Subject Concerned: Aircraft Airlines Cargo
Hainan Airlines (HNA) posted a net loss of 1.42 billion yuan (US$208.3 million) in 2008, a big reversal from the 626.9 million yuan profit reported in 2007, on a 19% lift in operating revenue to 13.55 billion yuan.
Operating expenses climbed 18.2% to 12.52 billion yuan. The Haikou-based carrier blamed "the global financial crisis, domestic natural disasters, declining market demand and soaring fuel prices" for the result.
Last year HNA introduced seven 737-800s, two A330s and one A340 to the fleet. It plans to take delivery of two A340s, three A330s, nine A319s and 24 737-800s in 2009. It operated a fleet of 77 aircraft as of Dec. 31.
Passenger boardings dropped 3.6% to 14.4 million while cargo volume fell 6% to 186,500 tonnes. Passenger load factor slid 2 points to 78.5%.
Looking ahead, HNA expects "opportunities to co-exist with challenges" this year as the worsening external operating environment will continue to impact demand but "the drop of fuel price, yuan appreciation and CAAC's favorable policies implemented at the end of last year" will have positive effects on its financial performance.
HNA also announced its first-quarter 2009 result, a 31.8 million yuan profit that was 88.9% lower than the 286.7 million yuan posted in the year-ago quarter. Operating revenue decreased 4% to 3.43 billion yuan while expenses fell 1.1% to 2.71 billion yuan.