For the first time in six years, net income has doubled, and Air China ‘s exchange losses last year decreased by nearly 50%

For the first time in six years, net income has doubled, and Air China ‘s exchange losses last year decreased by nearly 50%
On the evening of March 31, China International Airlines Co., Ltd. (hereinafter referred to as “Air China”) released its 2019 annual report.The report shows that Air China’s revenue and net profit for 2019 will be the first double drift in six years.In addition, data show that during the first two months of 2020, Air China ‘s cumulative passenger turnover has decreased by 40%.9%.Air China said that due to the impact of the New Coronary Pneumonia epidemic, domestic passenger transport volume during the Spring Festival and post-holiday seasons has decreased. The movement of people around the world has led to a reduction in the volume of international flights. The air transport industry has been hit, and short-term losses cannot be avoided.Revenue, net profit double mixed for the first time in six years, the average total number of guests 81.02% In 2019, Air China achieved operating income of 1361.8.1 billion, a year-on-year decrease of 0.43%; net profit attributable to shareholders of listed companies64.0.9 billion, a decrease of 12.65%.This is the first time since 2014 that Air China has seen a steady state of revenue and net profit.In addition, Air China ‘s non-net profit deduction in 2019 was 61.7.4 billion, a decrease of 6 per year.74%, compared with 10 years in 20188.A 4% reduction has significantly increased.Air China’s main military international, domestic scheduled and unscheduled air passenger transportation, cargo, mail and luggage transportation business, of which scheduled and unscheduled air passenger transportation is the main business of Air China.The data shows that in 2019, Air China’s air passenger operations revenue was 1245.200 million, an annual increase of 3.4%, of which revenue increased 62 due to expansion of capacity.US $ 4.5 billion, increasing revenue due to an increase in passenger load6.62 ppm, a decrease of income 28 due to a decline in income levels.1.2 billion.Air China transported passengers1 last year.1.5 billion person-times, an annual increase of 4.81%, with an average guest double bed 81.02%, increasing by 0 every year.42 averages.In addition, Air China ‘s air cargo and postal services revenue in 2019 was 57.3.2 billion, an annual decrease of 49.74%; other business income is 31.900 million yuan, a decrease of 5 every year.85%.In 2019, Air China will launch new international and regional flights in Shanghai-London, Hangzhou-Rome, Tianjin-Osaka, Yinchuan-Hong Kong, Chongqing-Tokyo, Chongqing-Okinawa, Hohhot-Ulaanbaatar, Wenzhou-Bangkok, Hohhot-Shenyang, Chongqing-Changchun, Zhengzhou-Yinchuan, Guiyang-Fuzhou and other domestic routes.According to the report’s baseline, Air China introduced 48 aircraft and withdrew 18 aircraft.As of the end of 2019, Air China had 699 passenger aircraft (including business jets), with an average age of 6.96 years.Jet fuel cost decreased by 6.54%, the exchange loss decreased by 49 per year.05% jet fuel is one of the main components of aviation production cost. The level of jet fuel price directly affects the production cost of the transmission, and the slenderness affects the operating performance.The report shows that the cost of aviation fuel for Air China in 2019 is 359.6.5 billion yuan, accounting for 31% of operating costs.76% is the main operating cost of Air China.Affected by the combined effects of increased fuel volume and lowered jet fuel prices, Air China’s aviation fuel cost and cost in 2019 decreased6.54%.Air China stated that in 2019, while other variables remain unchanged, if the average jet fuel price increases or decreases by 5%, its jet fuel cost will increase or decrease by approximately 17.9.8 billion yuan.In addition to fluctuations in oil prices, the impact of exchange rate fluctuations on the air transport industry is also very important.Certain assets and liabilities of Air China are mainly denominated in US dollars, Euros, Japanese yen and Hong Kong dollars, and some fees are also denominated in currencies other than Renminbi.The reported exchange rate, the exchange rate of the RMB against the US dollar, the Euro, the Japanese yen and the Hong Kong dollar, has become the leader of Air China in confirming the exchange rate difference.In 2019, the net exchange rate of Air China is 12.1.1 billion yuan, a decrease of 11 from 2018.6.6 billion, an annual decrease of 49.05%, which is the lowest net exchange loss for Air China since 2015, but Air China achieved net exchange gains in 201319.3.8 billion yuan.According to Air China, the risk variables other than the exchange rate are expected to remain the same. Changes in the exchange rate of RMB to the US dollar will cause the RMB to appreciate or depreciate by 1%, which will cause its net profit and shareholder ‘s equity to increase or decrease on December 31, 20194.44ppm Renminbi; changes in the exchange rate of the Renminbi against the Euro caused the Renminbi to appreciate or depreciate by 1%, increasing or decreasing its net profit and shareholders ‘equity on December 31, 2019 by 1251, respectively.RMB 50,000; RMB exchange rate changes against the US dollar will cause RMB to appreciate or depreciate by 1%, which will cause its net profit and shareholders’ equity to increase or decrease by 1065 on December 31, 2019.10,000 yuan.In addition, benefiting from the half-collection policy of the Civil Aviation Development Fund implemented since July 1, 2019, Air China’s 2019 Civil Aviation Development Fund decreased by 22.09%.In addition, the report also repeatedly raised the risk of alternative competition brought by high-speed rail. Air China believes that the rapid formation of China’s high-speed railway network will further intensify the competition of air-rail within the hub points and its radiation zone.The epidemic has put pressure on operations, and in February this year, the guests were downgraded for several months.9% At the beginning of 2020, the New Coronary Pneumonia epidemic spread worldwide. The domestic Spring Festival and post-holiday passenger traffic decreased. The global movement of people led to a reduction in the number of international flights and the air transport industry was hit.Air China stated that due to the uncontrollable factors, it is difficult to avoid losses in the short term.According to the operational data released by the Air China Army, in February this year, the number of passengers carried by Air China was 1.6 million, a decrease of 82 per year.9%; passenger transport capacity investment fell by 68 per year.1%, the passenger turnover decreased by 80 per year.5%.The average passenger boost is 51.4%, down 32 every year.6 averages.As of February, Air China had accumulated 10.78 million passengers in 2020, a year-on-year decrease of 43.1%, the cumulative passenger turnover decreased by 40 per year.9%.However, Air China believes that the fundamentals of China ‘s economy have not changed in 2020, the economy is stable and improving, and the basic trend of long-term improvement has not changed. The long-term demand of the Chinese aviation market remains strong and the market potential is still huge.According to the plan, Air China plans to open Chongqing-San Francisco, Hangzhou-Tokyo, Beijing-Yan’an, Shanghai Pudong-Shenyang and other international and domestic routes in 2020.Sauna, Ye Wang Wang Zhenzhen editor Li Zheng proofreading Chen Diyan picture Air China Weibo screenshot