China’s Hainan Airlines reported a first-quarter net profit of CNY1.44 billion ($216 million), up 56% over net income of CNY921.2 million in the year-ago quarter.
First-quarter operating revenue rose 10.5% to CNY10.08 billion while expenses grew 4% to CNY8.34 billion. The Haikou-based carrier credited robust market demand growth and lower fuel prices as main reasons for the profit increase. It did not release 1Q traffic figures.
China’s big three carriers—Air China, China Southern and China Eastern Airlines—have all reported big first-quarter profit increases for the same reasons.
Separately, Hainan Airlines’ subsidiary the Xi’an-based Chang’an Airlines launched its inaugural Xi’an-Zhuhai route on May 9. It is expected to operate Boeing 737-800s on routes from Xi’an to Zhuhai and Haikou initially, and plans to open more routes to cities along China’s Silk Road soon.