CFBFrame From United States of America, joined May 2009, 531 posts, RR: 3 Posted (5 years 7 months 3 days 22 hours ago) and read 5621 times:
Last year many of the China airlines were significantly under water in profitability. There were the stories that hedges were impacting profitability negatively, and many of the airlines were hiding behind the China courts and not complying with their legal obligations. They were delaying delivery of cargo a/c (777Fs for China Southern to be specific) because worldwide cargo demand was down significantly, and both domestic and international demand was down.
Now, the stories are centered around the airlines having an increase in domestic demand (despite low yields) and they're on the positive side of the hedges. Air China is increasing capacity with an average load factor of 76%. This story from ATW indicates Air China has made a major turnaround. How does that happen ?
huaiwei From Singapore, joined Oct 2008, 1125 posts, RR: 2
Reply 2, posted (5 years 7 months 3 days 22 hours ago) and read 5551 times:
Figures can be deceiving. Air China reports "Passenger boardings rose 14.2% to 41.28 million", but 2008 was a low point for air travel in China, especially for Air China as its base is in PEK and people actually shunned the city during the Olympics period as they anticipated overcrowding.
So because everyone predicted their neighbour would fly there and refused to do so, in the end no one went!
It's huaiwei...not huawei. I have nothing to do with the PRC! :)