Air China: Management discussion of Jun-2010 operating data
13-Jul-2010 In June 2010, Air China achieved sustained, strong year-over-year growth in air passenger traffic, with growth on international and regional routes particularly pronounced.
However, performance varied on a month-over-month basis. International routes continued to see traffic growth, while domestic and regional routes experienced a decline in traffic compared with the previous month. The cargo business maintained solid year-over-year growth, however, there was a slight decline on a month-over-month basis.
Passenger capacity, measured in Available Seat Kilometers (ASK), grew 16.2% year-over-year. Passenger traffic, measured by Revenue Passenger Kilometers (RPK), rose 27.2% in June. Capacity on international and domestic routes increased by 18.1% and 13.6% year-over-year, respectively, while RPK rose by 32.1% and 22.3%, respectively. Capacity on regional routes increased by 50.5% year-over-year, with RPK up 80.5%. The passenger load factor was 80.4%, up 6.9 percentage points year-over-year. The passenger load factor for international, domestic and regional routes improved by 8.7, 5.7 and 12.0 percentage points year-over-year, to 82.1%, 79.7% and 72.4%, respectively. (Please note that Shenzhen Airlines and Air Macau are not included in these figures.)
Cargo capacity, measured in Available Freighter Tonne Kilometres (AFTK), rose by 19.0% year-over-year. Freighter tonnage carried and Revenue Freighter Tonne Kilometres (RFTK) increased by 24.9% and 30.6%, respectively, compared with the same month in 2009. In June, the cargo load factor improved to 61.0%, an increase of 5.4 percentage points year-over-year. Both the international and regional routes enjoying significant growth.
During the month, a number of new routes were launched. The Company launched its daily Shanghai-Jiuzhaigou route on 1 June; its Beijing-Yibin route with four flights a week on 3 June, its Beijing-Yushu route with three flights a week on 11 June, and its Shanghai (Hongqiao)-Taipei (Songshan) route with four flights a week on 25 June.
During the month, the Company's average jet fuel purchase price at international airports was RMB4,943 per tonne, and the average purchase price of jet fuel for international flights at the top six Chinese airports was RMB5,408 per tonne, representing 24% and 33% year-over-year increases, respectively. The Company's average jet fuel purchase price for domestic flights was RMB6,038 per tonne, an increase of 36% compared with June last year.
Air China purchased a total of 283,000 tonnes of jet fuel during the month at an average price of RMB5,635 per tonne, a year-over-year increase of 32%.