Spring Air Q1 Net Profit Up 44 Percent

April 28, 2016

Bookmark and Share

China's largest budget carrier Spring Airlines posted a 44 percent jump in first-quarter net profit to CNY366.7 million yuan (USD$56.61 million), lifted by robust travel demand.

In a stock exchange securities filing, Spring Airlines said 2015 net profit rose 50.2 percent to CNY1.33 billion yuan. The airline had already flagged the 2015 profit growth in January.

Airlines in China are benefiting from a surge in travel by the Chinese, and lower fuel prices. Earlier this month, Spring Airlines chairman Wang Zhenghua said that the company seeks to double the size of its fleet to 100 aircraft by 2018.

Spring Airlines has been profitable since it was launched in 2005 by Wang. Last year, it became the first budget airline to list on the Shanghai Stock Exchange.

But a 24 percent fall in its shares this year could lead the company to consider investing in businesses that can provide bigger returns, Wang told reporters this month.

In a separate statement, Spring Airlines said its president Zhang Xiuzhi has resigned for health reasons, but did not provide further details.

(Reuters)