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Southern Airlines dives into the red

By Hui Ching-hoo (China Daily)
Updated: 2009-04-16 07:48

China Southern Airlines Co swung to a record loss of 4.82 billion-yuan in 2008 from a profit of 1.83 billion-yuan in 2007 and said it remains confident for this year despite a challenging outlook.

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The carrier said the losses were mainly due to weaker passenger demand, cost pressure resulting from higher domestic oil prices, and impairment losses on its fixed assets.

The company said operating expenses in 2008 rose sharply compared with the mediocre increase in operating revenue.

During the period, operating expenses rose 16.6 percent to 61.76 billion yuan. In contrast, the company's operating revenue rose just 1.6 percent to 55.28 billion yuan.

Passenger load factor fell by 0.7 percentage points to 73.8 percent, while passenger yield remained unchanged at 0.61 yuan.

Passenger revenue from the Chinese mainland - which accounts for 83 percent of the total passenger revenue in 2008 - advanced by 2.8 percent to 41 billion yuan...

The full text is available in the April Issue of Logistics China. Please visitpublications for more subscription details.

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