China’s Juneyao Airlines reported a net profit of CNY1.25 billion ($180 million) in 2016, up 19% over a net income of CNY1.05 billion in 2015.

Operating revenue for the year rose 22% to CNY9.9 billion, while operating expenses increased 28% to CNY7.7 billion.

The Shanghai-based carrier cited continuous market demand growth and its double-brand model with Guangzhou-based low-cost subsidiary 9 Air as main reasons for the improved performance.

Juneyao operates more than 80 domestic and international routes from Shanghai to neighboring countries, accounting for an 8.5% share of the Shanghai market, up from 7.8% from 2013-2015.

Passenger capacity was up 23% to 25.8 billion ASKs against a 31% increase in passenger traffic to 12.4 billion RPKs. Passenger boardings jumped 26% to 13 million with an average load factor of 85.7%, up 0.5 point over 2015.

Cargo traffic volume was up 32% to 75,140 tonnes.

Last year, Juneyao introduced six aircraft and subsidiary 9 Air took delivery of four, which expanded Juneyao’s total fleet to 56 aircraft and 9 Air’s total fleet to nine, with an average fleet age of 3.84 years.

This year Juneyao is scheduled to take delivery of nine aircraft while 9 Air plans to introduce six.