China’s Juneyao Airlines reported a 2018 net profit of CNY1.2 billion ($174.5 million), down 7.7% from CNY1.3 billion in 2017. This was the first time the company's profits have dipped since 2012.

After deducting non-recurring gains and losses, the net profit further fell 19.1% year-over-year (YOY) to CNY943.7 million.

Juneyao’s results were remarkably better than China’s “Big Three” major state-owned carriers, which all saw profits drop by more than 50%.

Juneyao said its total revenue was up 15.8% YOY to CNY14.3 billion; however, the company did not reveal operating costs in its annual report.

The Shanghai-based carrier said bank interest rates, devaluation of the Chinese currency against the greenback and rising fuel prices had a direct impact on the company. As China relies heavily on oil imports, the weak yuan against the US dollar pushed the cost for jet fuel higher. 

In 2018, Juneyao reported a 10.4% YOY increase in capacity (ASK), keeping up with passenger growth (RPK) of 9.5% YOY. The airline carried 18.8 million passengers, up 13% YOY, mostly coming from the Hong Kong, Macau and Taiwan market. Overall load factors declined 0.7 points to 86.2%.

Chen Chuanren,