ATW Daily News

Spring reports sevenfold surge in full-year profit

Tuesday January 12, 2010

Spring Airlines reported a profit of CNY158 million ($23.1 million) in 2009, a sevenfold increase over the CNY20 million earned in 2008, on a 27% lift in operating revenue to CNY1.99 billion.

China's most successful LCC credited "effective cost control" for the improved result. "We saved about CNY103 million in operating expenses last year," a Spring spokesperson noted. The airline's costs are about 35% below the industry average.

Last year, salaries for senior management were cut by 30%. Spring also adopted fuel-saving measures by optimizing routes, altitude and airspeed and reducing aircraft weight.

Passenger boardings climbed 46% to 4.3 million in 2009, with an average load factor of 95%. Spring operates a fleet of 14 A320s and is expected to introduce one more at the end of this month. It plans to take delivery of seven aircraft this year and will introduce 10 in 2011.

Its first international services will be launched by year end. "We hope to open new routes to Japan, Korea, Taiwan, Hong Kong and Macau," Chairman Wang Zhenghua noted.

by Katie Cantle

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