Spring Airlines nearly triples 2010 profit

Spring Airlines A320.

Shanghai-based Spring Airlines reported net income of CNY470 million ($71 million) in 2010, nearly tripling its 2009 net profit of CNY158 million. Spring Chairman Wang Zhenghua credited the "continuous growth of domestic market demand, especially boosted by the Shanghai World Expo," for the improved result. The carrier didn't reveal traffic figures.

Wang said he expects 2011 will not be as strong a year. "This year the growth of market demand will slow down, so we expect our net earnings will decrease despite adding 30% to 40% more capacity this year," he predicted.

Spring operates a fleet of 20 Airbus A320s and had planned to introduce 10 more A320s this year, but CAAC's strict control over carriers' fleet additions (ATW Daily News, Oct. 26, 2010) changed its expansion plan. It will now take delivery of seven or eight A320s this year.

Spring plans to establish a second domestic base in 2011, expected to be either Shenyang or Shijiazhuang. On the international front, the carrier is slated to open new routes to Macau, Taiwan, Japan and other Southeast Asian countries. It is operating with an average load factor of more than 90% on its Hong Kong and Ibaraki routes.