Economic Information Daily three air journey total 28 billion international airplane almost half the total decrease rate

With the Annual Report of China Air display, the three airplane was revealed to the Economic Information Daily in public outlook, China Southern Airlines lost 4.829 billion yuan, 13.928 billion yuan decrease of Eastern Airlines, Air China lost 9.149 billion yuan, the total decrease of three airplane 27.906 billion yuan, which General Administration of Civil Aviation of China is the largest in the annals of the three airplane decrease records. According to IATA statistics, in 2008 the international airline commerce decrease of 8.5 billion U.S. dollars, which means that the total deficiency of China’s three foremost aviation airplane account for the international rate of 48.1% of total losses.

However, very careful investigation of the annual report is not tough to find three airplane, three airplane in 2008 involved in a “one-loss enough” of supposes, in supplement to all the Oil futures deficiency into the decrease of ride high, but furthermore have a large provision for impairment . With the heating of the first quarter of municipal aviation market, which for the three airplane recovery presentation in 2009 has prepared a good foundation.

Provision for impairment of 4.354 billion yuan

Oil conjecture due to hedging agreements has directed to China Eastern and Air China endured a gigantic bobbing decrease of equitable worth, which Eastern Airlines fuel hedging deficiency took location in 2007 an boost of over 6.353 billion yuan, accounting for 46 per hundred of the total loss. Air China’s alterations in equitable worth decrease of 7.707 billion yuan, accounting for 84.24% of the total loss.

Oil futures because of conjecture in the lead after the decrease of three airplane proceed a long way, “a shortfall enough,” the suspect. China Southern in 2008 increased a total of 2.073 billion yuan impairment, the allowance of provision in 2008 accounted for China Southern’s 43% loss; Donghang report displays that assets impairment deficiency amounted to 2.022 billion yuan, an boost of 800 percent; Air assets in China impairment decrease of 2.59 billion the preceding year but less than the impairment provision. Total impairment of the three airplane 4.354 billion yuan, accounting for 15.6% loss.

In addition, Air China lost in the investment 1.152 billion yuan, mainly due to associated companies – Cathay Pacific Airways to confirm a loss of 1.188 billion yuan of investment losses. This means that Air China’s main business in 2008 the basic break-even.

If we take away the impairment and the CAO collections of balancing capital deficits, the forfeit of three aeroplane was 9.486 billion yuan more than the development had looked frontwards to better.

Greatly reduced the performance of pressure this year

Provision for impairment of large and warmer as long as the first quarter written knowledge liberated in order that a ray of expect for the industry. Air China yesterday’s statement presentations that the first quarter of this year, Air China is not only the windup of spinning, but in addition a yield of 980 million yuan, 0.08 yuan minimal returns per share.

First quarter of this year, Air China to achieve operating income of 11.24 billion yuan, up 11.8 percent decline; 980 million yuan net profit (excluding minority interests), earnings per share and net return on assets reached 0.08 yuan and 4.73 percent. Shenzhen Airlines official figures showed that one quarter of 160 million yuan profit and that the air transport industry have indications warmer.

The Civil Aviation Authority numbers displayed that the first quarter of the household municipal aviation transport commerce revenue development over the preceding year a total of 1.3 per hundred over the identical time span, household traveller transport capacity of 1 to 3 months, respectively, over the identical time span last year an boost of 21.3%, 17%, 15.8%. 1 March this year, China’s municipal aviation commerce is anticipated to accomplish profitability.

As the market rebound, as well as three large aircraft impairment preparation, the performance of airlines in 2009 has greatly reduced the pressure, if the second and third quarter to continue the current growth in 2009 is expected to turn around the three major routes.