Spring Airlines 2018 net profit up 19.1% on cost controls
Chinese LCC Spring Airlines overcame higher fuel costs and a weakened currency to post a 2018 net profit of CNY1.5b (US$218.1m), up 19.1% from CNY1.26b in 2017. Total operating income increased 19.4% year-over-year to CNY13.1b, while operating costs climbed 22.9% to CNY11.8b, with fuel accounting for 33.8% of the total. Excluding fuel, however, costs decreased 1.3% as the result of “improvements in major cost items,” the carrier said. Marketing and sales costs decreased 25.4%, thanks to controlled and targeted marketing on digital platforms, the airline said. Spring said it remains competitive by following a “2 high, 2 low” strategy: high aircraft utilisation and density, and low management and marketing costs. The airline said it would also continue to focus on ancillary revenue, which totaled CNY610m in 2018. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-04-23/unaligned/spring-airlines-2018-net-profit-up-19-1-on-cost-controls
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Spring Airlines 2018 net profit up 19.1% on cost controls
Chinese LCC Spring Airlines overcame higher fuel costs and a weakened currency to post a 2018 net profit of CNY1.5b (US$218.1m), up 19.1% from CNY1.26b in 2017. Total operating income increased 19.4% year-over-year to CNY13.1b, while operating costs climbed 22.9% to CNY11.8b, with fuel accounting for 33.8% of the total. Excluding fuel, however, costs decreased 1.3% as the result of “improvements in major cost items,” the carrier said. Marketing and sales costs decreased 25.4%, thanks to controlled and targeted marketing on digital platforms, the airline said. Spring said it remains competitive by following a “2 high, 2 low” strategy: high aircraft utilisation and density, and low management and marketing costs. The airline said it would also continue to focus on ancillary revenue, which totaled CNY610m in 2018. <br/>
