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Juneyao Airlines’ Profit in 2010 Quadruples Year on Year
ReleaseDate: 2011-01-26

January 26th 2011,, Chen Shanshan

Benefited from the growing passenger flow during the Shanghai World Expo, JuneYao Airlines of the JuneYao Group based in Shanghai doubled its profit in 2010.

"China Business News” reporter learned from the JuneYao Airlines on January 26, the company's profit in 2010 reached 416 million yuan, increased by approximately threefold compared with that of 108 million yuan in 2009.

In 2010, both the passenger and cargo traffic volumes of JuneYao Airlines have a substantial growth, of which, the total turnover of transport reached 511 million ton-km, an increase of 53.71% year on year; the turnover of RFTK 34,800 tons-km, an increase of 50.04%; the carriage of passengers had 3,593,600 times, an increase of 46.78%; transportation and production flights was 62,119.64 hours, an increase of 45.06%. The annual average passenger load factor was more than 86%.

The growth in passenger and freight transport has also increased the revenue significantly. In 2010, the sales income of JuneYao Airlines reached 3 billion yuan, while the number was 1.67 billion yuan in 2009.

The demand in the Shanghai World Expo is an important driving force of great profit increase in the aviation industry in 2010. Previously, the Shanghai-based Spring Airlines announced that its 2010 net profit reached 470 million yuan, an increase of 240% year on year.

At present, JuneYao Airlines operates 18 aircrafts in total and has opened more than 30 routes departure from Shanghai to and from the major cities of China. In 2011, JuneYao Airlines plans to introduce six aircrafts and the company has received a new aircraft in January this year.

In 2010, JuneYao Airlines secured the international operation qualifications, and opened Shanghai to Hong Kong's first international (regional) route in December; during the Spring Festival, the Shanghai-Hong Kong route will be increased to two flights a day.

It is noteworthy that, in Shanghai-Hong Kong route, there are China Eastern Airlines, Shanghai Airlines, Spring Airlines, Dragon Airlines and Hong Kong Airlines competing together currently.

In 2011, JuneYao Airlines plans to open more international routes. It is learned that the company has applied to the Civil Aviation Administration of China to open Shanghai - Sapporo - Shanghai scheduled passenger routes, which is likely to be the second international (regional) air route after Hong Kong routes opened by the private JuneYao Airlines. At present, Shanghai - Sapporo routes is operated by China Eastern Airlines on a chartering basis.

Prior to the JuneYao Airlines, another private Airlines, Spring Airlines, has opened Shanghai- Japan Ibaraki(near Tokyo) route, and plans to open more routes to other cities in Japan; while for the airline market between Shanghai to Japan and South Korea, China Eastern Airlines accounts for the largest market share.

Seen from the current situation, both above two private airline companies eligible for international air route operation have placed their preliminary expansion priority in the Hong Kong and Japanese markets.

According to the plan of JuneYao Airlines, the company will gradually open up such international routes as South East Asia, Japan and South Korea, to operate international passenger and freight business originating from Shanghai, and gradually form a sound air route network centered in Shanghai and connected with the domestic and overseas routes.

Wang Junjin, chairman of JuneYao Airlines had told the reporter that the JuneYao Airlines currently wholly owned by JuneYao Group was mainly funded by bank financing, and at the same time, the Airlines was preparing to go IPO.