Chinese carriers post losses despite passenger traffic increases

Posted: April 13, 2012 in Airlines, Asia, Aviation & Airports (General News), China
Tags: , , , ,

Chinese carriers reported a net loss of almost CNY200 million ($31.6 million) in March, reversed from a collective net profit of CNY1.71 billion in the year-ago month, due to high fuel prices and a decline in cargo traffic.

Chinese carriers at Beijing International. By Rob Finlayson

Chinese carriers at Beijing International. By Rob Finlayson

Passenger boardings increased 8.6% to 25.03 million, up 8.3% on domestic routes and 12.8% on international routes compared to the same month in 2011. Cargo traffic dipped 6.1%, up a slight 0.4% on domestic routes and plummeted 18.3% on international routes.

Industry analysts said market demand started to pick up in April with continuous domestic economic growth and slow global economic recovery but rising fuel expenses still remain a major challenge.

Fuel costs rose 16% in March, an increase of CNY1.64 billion over the same period last year. Analysts said that fuel surcharges revenue, which was CNY1.17 billion, was not enough to offset rising fuel expenses.

Earlier this month the Chinese government has raised domestic jet fuel prices to CNY8,061 ($1,275) per ton, up 4.35% from CNY7,725 per ton (ATW Daily News, April 6).

Read the original story here at Air Transport World….

By Katie Cantle
April 13, 2012


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s