China’s largest low-cost carrier (LCC) Spring Airlines reported 10.45% jump in revenue for 2015 in its first annual report released after its listing in January. The total revenue for the year topped RMB 8.094 billion. Revenue from passenger transport increased 9.10% YoY to RMB 7.576 billion which accounted for 98.78% of the total revenue. Revenue from freight service decreased 2.91% to RMB 94 million, which was around 1.22% of the total revenue. Revenues from other services grew 47.82% to RMB 424 million. The net income attributable to shareholders for the year rose 50.18% to RMB 1.328 billion.
The airline mainly operates domestic and international passenger service and freight service, as well as other air transport services. The company launched flights to and from Hong Kong, Macao and international destinations in 2010 and has been speeding up its international expansion since 2011, supported by its strong online direct sales and offline distribution through travel agents. During the reporting period, the carrier operated 58 routes connecting various cities in China with Northeast Asia, Southeast Asia, Hong Kong, Macao and Taiwan, 49 routes of those routes cover Japan, Thailand and South Korea.
As a budget carrier, Spring Airlines differentiates itself from legacy airlines (also known as full-service carriers) by leveraging its comparative pricing advantage to attract people who travel on their expenses and price-sensitive travelers, as well as corporate travelers who demand cost-effective services. The carrier has a fleet of 52 jets at the end of 2015, and operates a total of 114 international and domestic routes to 84 cities worldwide. (Translated by Jerry)