Spring Airlines reported 128.1% y-o-y increase in net profits to RMB620 million in its fiscal report for the first half of the year. The earnings per share was RMB1.62.
Spring Airlines CEO Zhenghua Wang
Operational income for the period was RMB3.953 billion, up 15.04% y-o-y thanks to expanded fleet bringing increased passenger transportation revenue and significant growth of supplementary revenues from additional operations.
Spring Airlines attributed the growth in the first half of the year to having achieved freight turnover of 976 million ton-kilometers and passenger throughput of 6.3 million, up 22% and 15% y-o-y respectively. Its fleet also grew from 46 aircraft in the end of 2014 to 50 by the end of June 2015, and the load factor remained high at 93.75%.
The carrier’s exposure in US dollars denominated assets was valued at US$150 million as of end July, net of natural hedges in US dollar assets and the exchange rate losses for the US dollar down-payments for plane purchases.
The carrier will increase RMB-USD swap deposits to build up more USD assets and prioritize the repayment of USD loans while taking out more loans in yen and incorporating long-term exchange products to control its USD exposure. It hopes to minimize its USD exposure by the end of August and thus dilute the risk caused by the RMB devaluation.(Translation by David)
