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SHANGHAI, Mar. 26 – Hainan Airlines net profits nearly quadrupled in 2007, thanks to a booming domestic industry and a stronger Chinese currency.
The company, China’s forth largest carrier, posted a net income of RMB651.4 million, up from RMB166.8 million in 2006 it said in a statement to the Shanghai Stock Exchange.
The Haikou-based carrier’s operating revenue rose 6.1 percent to 13.6 billion in 2007, and it took in RMB11.3 billion from 14.5 million passengers. The volume of cargo transport however, declined 0.5 percent to 197,900 tons the company said.
Chinese airlines carried 185 million passengers last year, up 15.9 percent, while cargo volume surged 13.3 percent to 3.96 million tons, according to government estimates.
Hainan Airlines planned to raise passenger numbers by 16 percent to 16.75 million in 2008 said Xinhua.
In 2007, the company added 8 aircraft to its fleet of 66, of which 58 are Boeing 737s. The airline will invest RMB9.8 billion this year, adding another 17 new aircraft to the fleet, including 10 Boeing 737-800s.
Hainan Airlines was a George Soros investment, he brought in a lot of great management. He exited a few years ago but it remains practically the only airline in China that makes money. Once again the private sector gets it right way way ahead of government.