China Southern 3Q profit up nearly 3%
Published: October 31, 2011
China Southern A320. By Rob Finlayson
China Southern Airlines (CZ) reported a third-quarter net profit of CNY3.13 billion ($ 492 million), up 2.99% from CNY3.04 billion in the year-ago quarter. The Guangzhou-based carrier cited robust growth in domestic demand for the result.
Revenue jumped 17.8% to CNY27.27 billion against an increase of 24.3% in expenses to CNY 20.61 billion. The carrier did not release traffic figures.
CZ posted a net income of CNY5.9 billion for the first nine months of this year, up 15% compared to CNY5.1 billion year-over-year. Revenue climbed 20.5% to CNY69.7 billion while expenses jumped 22.8% to CNY55.91 billion.
Looking ahead, Minsheng Securities aviation analyst Zhang Zhuo is optimistic about the carrier’s full-year financial performance, owing to the continuous growth of domestic traffic. “CZ operates 80% of its flights on domestic routes,” the analyst said, noting the decline of domestic fuel prices also reduces the carrier’s operating expenses. Additionally, “Yuan appreciation” has boosted its financial performance for 2011 as the carrier steadily expands its international market.