Hainan Airlines reported a 2012 net profit of CNY1.93 billion ($305.6 million), down 26.7% compared to CNY2.63 billion in 2011.
Operating revenue jumped 9.9% to CNY28.87 billion while operating expense climbed 10.6% to CNY 21.56 billion. The Haikou-based carrier cited high fuel prices, the slowdown of domestic market demand and the continuous decline of international market demand as reasons for the profit decline.
Passenger boardings rose 10.05% to 22.6 million with an average load factor of 84.4%, improved 0.24 points over last year. Cargo traffic volume grew 0.21% to 292,600 tonnes.
Last year, the carrier introduced 15 aircraft and phased out six aircraft. As of Dec. 31, 2012, it operated a fleet of 117 aircraft. This year it is scheduled to introduce 29 aircraft, comprising five Boeing 787s, 20 Boeing 737-800s, two Boeing 737-700s and two Airbus A330-300s.
This year, the carrier predicts the global economy will recover but inflation will become more serious. It also forecasts international fuel prices will remain volatile. In addition, the rapid construction of the domestic high speed rail could have some impact on the carrier’s financial performance.