Spring doubles revenue and profits in 1H2010; improved performance expected in second half

China's most successful LCC, Spring Airlines, reported a doubling in revenue and profits in 1H2010, which the carrier attributes to “significantly” lower costs than its competitors. The carrier reported revenues of USD215.2 million in the six-month period, a 60% year-on-year increase, while profits surged 288.6% year-on-year to USD23.4 million. The carrier is gearing up for an IPO next year. [3035 words]

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This report contains the following subheadings:

• IPO plans on track to support massive fleet expansion
• Needs “astronomical” amount of funding to support fleet growth
• Chinese carriers present at Farnborough
• Expand internationally to Japan, Korea next; Shenyang to become third base
• Shenyang next base, Shijiazhuang possible
• Competition from high speed rail a concern
• Consolidation continuing

This report contains the following charts and tables:

• Chinese carrier average daily aircraft utilisation hours (selected types): 2009
• Spring Airlines fleet plans: 2011-2014
• Chinese carrier Farnborough 2010 orders
• Shanghai-Japan capacity (seats) share by carrier: Jul-2010
• Selection of new Spring Airlines routes for 2010
• High Speed Rail System in China
• Spring Airlines capacity (seats) by route pair (one-way): Jul-2010
• China domestic capacity breakdown by carrier (seats per week and as % of total): Independent carriers in bold