Seize the opportunities of economic recovery and the World Expo in Shanghai
Optimise the Synergy of Integration of China Eastern and Shanghai Airlines
HONG KONG, April 20 /PRNewswire-Asia/ -- China Eastern Airlines Corporation Limited ("China Eastern" or the "Company"), together with its subsidiaries (collectively, the "Group"), (HKEX: 670; SSE: 600115; NYSE: CEA) today explained the Group's financial results for the full year of 2009 (According to IFRS) and the first quarter of 2010 (According to PRC Accounting Standards) as well as the prospect for 2010 to the media and investors in a press conference and a meeting with investors. Present at the two events were Director and Company Secretary, Mr. Luo Zhuping, Chief Financial Officer, Mr. Wu Yongliang, and other members of the Company's management.
In 2009, the business environment for airlines started to change for the better, and the improving economy paved the way for a recovery in demand for air transportation in both domestic and international markets. As a result, the indicators of the Company generally showed improving performance. Available tonne-kilometres (ATK) rose by 7.4% year on year to 12.506 billion tonne-kilometres. Revenue tonne-kilometres (RTK) increased by 9.6% year on year to 7.909 billion tonne-kilometres. Overall load factor rose by 1.2 percentage points year on year to 63.2%. Passenger transportation business grew faster than cargo transportation business. According to International Financial Reporting Standards, profit attributable to the shareholders for 2009 was RMB169 million.
With a punctuality rate of the Group's flights at 83.45%, China Eastern ranked No. 1 among civil aviation operators for the second consecutive year. The figure was 1.55 percentage points higher than the domestic industry average.
Indicators of operations in the first quarter of 2010 showed that the Group's performance was improving and was at the best level in recent years since the integration of China Eastern and Shanghai Airlines. Overall load factor increased by 7.6 percentage points year on year to 67.8%. Operating income rose 74.0% year on year to RMB15.569 billion. Operating costs increased by 53.9% year on year. For the first quarter of 2010, China Eastern's unaudited net profit was RMB770 million, according to the PRC accounting standards.
The significant improvement in China Eastern's results was due to the gradual recovery of the economy and air transportation as well as the effective strategy and reform adopted by the Company's management. The present management has promptly applied various measures to improve the Company's operations since it assumed the reins. It has achieved significant progress with the restructuring, safe operations, efficiency enhancement, and building brand and corporate image, paving the way for better development. In addition, the two injections of share capital in 2009 improved the Company's asset quality.
Outlook
The Group expects that the global economy will stabilize and China will lead in the recovery. The international markets for air transportation are expected to recover gradually.
With the completion of the restructuring, the integration of the Company and Shanghai Airlines was in smooth progress. The integration was done in the areas of marketing, safety operation, information systems, business of cargo transportation with bellyhold cargo space in passenger aircrafts and financial systems. All of these areas have yielded synergistic benefits. This has enhanced the Company's competitive strength. Meanwhile, the World Expo 2010 Shanghai will also be a golden opportunity for China Eastern's development.
In 2010, the Company will take effort to raise profitability of its core business through strengthening revenue management and cost control. It will also provide quality services and products to satisfy customers' demands as well as to build its brand. China Eastern will strive to develop into a globally competitive airline with well-established hub-based air route networks and an airline of first choice in Asia in three to five years. It will also work hard to become an enterprise loved by employees, preferred by customers and trusted by society. Moreover, it will also work hard to bring good returns to shareholders.
About China Eastern
China Eastern Airlines Corporation Limited, the first listed company in the PRC civil aviation industry, conducts the core business of China Eastern Air Holding Company. In 1997, it listed on the New York Stock Exchange, the Hong Kong Stock Exchange and the Shanghai Stock Exchange respectively. The Company is one of the three largest air carriers in the PRC based on the ATK and the number of passengers carried in 2009 and is the primary air carrier serving Shanghai, the largest economic, trading and financial center of the PRC. In 2009, the Group operated approximately 6,894 scheduled flights per week, serving a total of 21 countries and regions, including 146 domestic and foreign cities. For further details, please visit China Eastern's website: http://www.ceair.com .
Remarks
China Eastern Airlines Corporation Limited hosted a conference about
2009 annual results and 2010 first quarter results on 20 April 2010. A
webcast replay of China Eastern's results conference will be available on
the Company's website at http://www.ceair.com after 20:30 on 20 April 2010 Hong Kong time.
Disclaimer
This press release contains projections and forward-looking statements that reflect the company's current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may change over time. No assurance can be given that future events will occur, that projections will be achieved, or that the company's assumptions are correct. Actual results may differ materially from those projections.