Spring Airlines 2018 net profit up 19.1% on cost controls

Posted by freemexy on April 25th, 2019

Chinese LCC Spring Airlines overcame higher fuel costs and a weakened currency to post a 2018 net profit of CNY1.5 billion (8.1 million), up 19.1% from CNY1.26 billion in 2017.To get more spring airline, you can visit shine news official website.

Total operating income increased 19.4% year-over-year (YOY) to CNY13.1 billion, while operating costs climbed 22.9% to CNY11.8 billion, with fuel accounting for 33.8% of the total. Excluding fuel, however, costs decreased 1.3% as the result of “improvements in major cost items,” the carrier said.

Marketing and sales costs decreased 25.4%, thanks to controlled and targeted marketing on digital platforms, the airline said.

Spring said it remains competitive by following a “two high, two low” strategy: high aircraft utilization and density, and low management and marketing costs.The airline said it would also continue to focus on ancillary revenue, which totaled CNY610 million in 2018.

In 2018 Spring carried 19.5 million passengers, increasing 13.7% YOY. Capacity (ASK) rose 16.7%, outpacing traffic (RPK), which was up 14.7%, resulting in an average load factor of 89%, down 1.6 points. Yields also increased 7% YOY.
Spring Airlines is a low-cost commercial airline that flies out of Shanghai, China. The airline began operations in 2005 and is looking to establish an initial public offering of stock on the Shanghai stock exchange in order to expand operations. The carrier has been flying internationally since 2009, hitting Hong Kong, Russia, Korea and Japan in some of its early international ventures. The carrier is also in the hotel business, owning a hotel in Japan.

Spring Airlines currently operates some of the larger and most modern planes in the industry, and has orders for several more coming to provide the infrastructure for a proposed expansion of service. Currently Spring Airlines operates 6 Airbus A320 aircraft that hold 180 passengers each. The airlines has recently placed an order for three more such aircraft, while also ordering 660 new planes, the Airbus A320neo and A321neo models.

To keep costs low, Spring Airlines only accepts bookings and reservations online or at designated ticket counter sites at airports. It does not work through any travel agency.

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