The latest research report on the operation of profitable civil aviation enterprises in 2021 issued by the comprehensive Department of CAAC shows that in 2021, the annual loss of China’s civil aviation industry reached 84.3 billion yuan.
However, the report also revealed that although the general operating difficulties of civil aviation enterprises have intensified, in addition to the three major aviation support enterprises, there are still 30 airports and five airlines that have made profits or even achieved contrarian growth.
which airports have made a profit
The five profitable airlines mentioned in the report are SF airlines, Yuantong airlines, Postal Airlines, colorful Guizhou airlines and Jiuyuan airlines.
It is worth noting that among the five airlines, the first three are cargo airlines. Among them, SF Airlines has the largest all cargo fleet in China, and the three cargo airlines also have their own express business segments to support the supply of goods.
Colorful Guizhou Airlines is a state-owned enterprise in Guizhou Province. At present, it has 16 aircraft, including 9 e190 aircraft and 7 a320neo aircraft.
The controlling shareholder of Jiuyuan Airlines is Juneyao Airlines Co.Ltd(603885) (603885), but different from Juneyao Airlines Co.Ltd(603885) , Jiuyuan Airlines is positioned as a low-cost airline, and its fleet is also the same Boeing 737 aircraft.
In addition to the five profitable airlines disclosed in the report, Xiamen Airlines, controlled by China Southern Airlines Company Limited(600029) (600029), also announced that it had made a profit in 2021 before the Spring Festival. In addition, Hainan Airlines Holding Co.Ltd(600221) (600221) and Spring Airlines Co.Ltd(601021) (601021) two listed airlines also predicted in the performance forecast that the net profit attributable to the parent company will turn loss into profit in 2021.
The 30 profitable airports mentioned in the report are Xiamen, Sanya, Haikou, Fuzhou, Guiyang, Chaoyang, Zunyi (Xinzhou), Anqing, Chifeng, Zhanjiang, Hulunbuir, Zalantun, Bazhong, Wuxi, Huizhou, Mianyang, Enshi, Huatugou, Wuzhou, Taizhou, Yulin, Tongliao, Yinchuan Yueya Lake, Alxa Yibin, Ulat, Yichang, Jining, Shangrao and Beihai airports.
The report points out that the common characteristics of these 30 profitable airports are “more old and less new”: 17 airports have been invested in construction for more than 20 years, accounting for 56.7% of the total number of profitable airports; There are 2 airports between 10 and 20 years, accounting for 6.7% of the total number of profitable airports; There are 11 airports with less than 10 years, accounting for 36.6% of the total number of profitable airports; The second is “small, large and small”: there are five ten million level airports, accounting for 16.7% of the total number of profitable airports, one 5-10 million level airport, accounting for 3.3% of the total number of profitable airports, seven small and medium-sized airports below 2-5 million, accounting for 23.3% of the total number of profitable airports, and 17 airports below 2 million (10 below 1 million), accounting for 56.7% of the total number of profitable airports.
why can you make money against the trend
For China’s airlines and airports, it is not easy to make a profit in 2021. In the past year, under the attack of the mutated virus, the epidemic situation in China has been repeated, and “one after another” in medium and high-risk areas. The continuous overweight of epidemic prevention policies in various places has also led to the early end of the most profitable Spring Festival transportation of Chinese airlines in the year, as well as the summer transportation peak season in the middle of the year.
So, why can these airlines and airports make profits? In this regard, according to the analysis in the report, although the 35 enterprises have different scales, different properties and different foundations, and the direct reasons for their profits are also different, in the face of the impact of the epidemic, their operation and management philosophy and operation and management mechanism show a high degree of flexibility, changing with time, guiding according to the situation and adjusting measures to local conditions, so as to minimize the impact of the epidemic; Second, from the perspective of operation and management mode, although the measures taken by these 35 enterprises are similar, nothing more than increasing revenue and reducing expenditure, reducing cost and increasing efficiency, their measures are more accurate and their practices are more refined, so the effect is more obvious, and they show their own distinctive characteristics in “details”.
According to the reporter, among the profitable airlines, Spring Airlines Co.Ltd(601021) and Jiuyuan airlines have prominent advantages in the epidemic. In the past 2021, the daily aircraft utilization rates of the two companies also ranked among the top two in the industry. Nine yuan Airlines refined the company’s cost objectives to each business and department, and updated the actual variable costs of each route in real time.
In addition, the report also mentioned that almost all profitable enterprises have enjoyed the state’s inclusive policies, mainly involving financial support, tax relief, financial credit, etc. local governments have also increased their support in terms of operation subsidies and airline subsidies. At the same time, civil aviation enterprises are also actively striving for various support policies.
For example, Spring Airlines Co.Ltd(601021) pointed out in the performance forecast that the non recurring profit and loss in 2021 is mainly the receipt of financial subsidies. After deducting the non recurring profit and loss, the non net profit attributable to the parent company is a loss of 70 million yuan to 130 million yuan.
The profit of Hainan Airlines Holding Co.Ltd(600221) is mainly due to the non recurring profit and loss of 16 billion yuan to 17.6 billion yuan brought by the completion of bankruptcy reorganization. After deducting this part, the net profit still has a loss of 8.8 billion yuan to 10.5 billion yuan.
For the coming year 2022, the International Aviation Association predicts that the flight traffic volume in 2022 will reach 93% of the pre epidemic level and is expected to reach 3.4 billion person times, which is only equivalent to the level in 2014. Many people in the industry expect that with the global acceleration of the research and development of covid-19 oral specific drugs, the industry will actively jointly launch the vaccine travel pass. Under the multiple guarantee of mask + vaccine + specific drugs, the international recovery is expected to continue to strengthen in the second half of 2022.
