Hainan Airlines' operating revenue up 4.7% in 2013

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Hainan Airlines’ operating revenue rose 4.7% to yuan (CNY)30.2 billion ($4.9 billion) in its 2013 financial year.

During the year, the carrier’s net profit also increased 9.2% to CNY2.1 billion. Its operating costs grew a similar 9% to CNY23.5 billion.

In 2013, the Shanghai-listed airline carried 26.3 million passengers, up 16.5% from a year ago. While its capacity in terms of ASKs grew 13.8%, its load factor managed to rise 2 percentage points to 86.5%.

On the cargo front, freight volumes grew 7% to 313,100t, says Hainan.

During the year, the carrier inducted 27 new aircraft into its fleet while retiring 13 others.

The carrier expects the economy in 2014 to be relatively stable and demand for air travel to remain strong. It adds that there is also a growing demand for air travel from tier 2 and tier 3 cities in China, and that airport developments in those cities will bring about new opportunities.

Hainan however expects the growth of low-cost carriers in the country to impact the operations of legacy operators.

Hainan Airlines has a fleet of 131 aircraft, including six Boeing 787s which it took delivery of last year. Its narrowbody fleet comprises of Boeing 737s, while Airbus A330s, 767s and A340s form its widebody fleet.