With a 22% increase in net profit in the 12 months ended on 31st March 07 All Nippon Airways is leading the way in North Asia as the Centre for Asia Pacific Aviation reported. The restructured full…
With a 22% increase in net profit in the 12 months ended on 31st March 07 All Nippon Airways is leading the way in North Asia as the Centre for Asia Pacific Aviation reported. The restructured full service carrier is predicting a doubling in net profit in the current financial year.
North Asia’s other shining light, Air China, continued its profitable run in the first quarter, with a USD52.2 million net result (a year-on-year comparison was not disclosed). The carrier predicts first half profits will more than double, due to strong traffic growth and earnings from its investment in Cathay Pacific.
Elsewhere in North Asia, China Eastern managed to cut net losses by half and China Southern by a third, in the historically challenging first quarter. The results were aided by two cuts in fuel prices and the appreciating Chinese currency. In Korea, Asiana Airlines reported a 162% increase in operating profit in 1Q07, due to rising demand for air travel.
The earnings picture on the Indian Subcontinent, on the other hand, is extremely bleak, with Air Deccan losing three dollars for every two gained and Pakistan International Airlines churning out another USD65.1 million net loss in the first quarter (a net margin of -22%), as operating costs surged. Bangladesh Biman Airlines meanwhile continues to haemorrhage cash, and is the subject of an emergency government rescue plan.
The outlook for both regions is for more of the same for the remainder of 2007. North Asia’s carriers should continue to strengthen, although those with a large exposure to the weak freight markets will experience a more difficult trading environment. Meanwhile, capacity and competition continues to grow in the Subcontinent, ruling out the prospect of an earnings recovery for the balance of 2007.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
