Maintenance, repair and overhaul group Hong Kong Aircraft Engineering (HAECO) in this year's first fiscal half posted a 27% fall in net profit to HK$430 million ($55 million) which it attributes to airlines cutting capacity.
Net profit for the six months ending 30 June fell 27% to HK$430 million from HK$591 million, the airline says to the Hong Kong stock exchange.
Revenue fell 13% to HK$2.17 billion from HK$2.50 billion and operating expenses fell 3% to HK$1.87 billion from HK$1.97 billion.
HAECO says its Hong Kong operations sold 1.2 million man-hours for airframe heavy maintenance in the period and Taikoo (Xiamen) Aircraft Engineering (TAECO), which it is a shareholder in, sold 1.83 million man-hours. This represents a decrease of 8% and 18% respectively, it says.
"The results reflect increasingly difficult trading conditions for HAECO's businesses as airlines cut capacity and expenditure in response to falling demand."
"Despite the downturn the company has continued to invest" in Hong Kong and China, it says.
"Construction of the company's third hangar in Hong Kong is scheduled to open in September," Taikoo Spirit AeroSystems (Jinjiang) Composite Company is expected to open its specialist advanced composite repair facility in the fourth quarter, TAECO's sixth hangar in Xiamen is expected to open in mid-2010 and Taikoo Engineering Services (Xiamen) is upgrading its facility with the first engine introduction expected in 2010's second quarter, it adds.
Source: Air Transport Intelligence news
