Juneyao Airlines' net profit increased fivefold in the first half of the year: holiday travel demand increased, and international line revenue nearly doubled
2024-08-15
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Juneyao Airlines Visual China data map
Private airline Juneyao Airlines achieved record revenue in the first half of the year and a five-fold increase in net profit.
On the evening of August 14, Shanghai Juneyao Airlines Co., Ltd. (Jiyao Airlines, 603885.SH) released its financial report for the first half of 2024. In the first half of the year, Juneyao Airlines achieved revenue of 10.956 billion yuan, a year-on-year increase of 17.41%; net profit attributable to the parent company was 489 million yuan, a year-on-year increase of 508.88%; basic earnings per share was 0.22 yuan, a year-on-year increase of 450%.
Juneyao Airlines pointed out in its financial report that its net profit attributable to shareholders of the parent company achieved a significant increase in the first half of the year, benefiting from the increase in travel demand during holidays such as the Spring Festival, and the opening and resumption of international routes.
According to Wind data, Juneyao Airlines' revenue hit a record high in the first half of this year, but its profit level has not yet returned to the pre-epidemic level.
According to the financial report, Juneyao Airlines, a full-service airline, uses Shanghai Hongqiao and Pudong airports as its main base airports, and Nanjing and Chengdu as its auxiliary bases; its subsidiary low-cost airline 9 Air uses Guangzhou Baiyun Airport as its main base airport. 9 Air is the only airline passenger transport company other than China Southern Airlines that uses Guangzhou as its main operating base, and it is also the only low-cost airline with a main base in Guangzhou.
The financial report also pointed out that Juneyao Airlines plans to pay a cash dividend of 0.09 yuan per share (including tax) to all shareholders. As of June 30, the total cash dividend is 197 million yuan (including tax), and no bonus shares will be issued or capital increase will be made from the public accumulation fund.
As of the close of August 14, Juneyao Airlines was trading at 11.2 yuan per share, down 1.41%.
International revenue nearly doubled in the first half of the year: international passenger load factor increased by 10 percentage points, and intercontinental routes have begun to take shape
By region, Juneyao Airlines' domestic revenue (excluding Hong Kong, Macao and Taiwan) in the first half of the year was 8.663 billion yuan, a year-on-year increase of 6.5% according to reporters' calculations; international revenue reached 2.157 billion yuan, a year-on-year increase of nearly 100% according to reporters' calculations; revenue in Hong Kong, Macao and Taiwan reached 135 million yuan, a year-on-year increase of more than 10% according to reporters' calculations.
In terms of business, Juneyao Airlines' air passenger revenue in the first half of the year was 10.598 billion yuan, an increase of more than 15% year-on-year according to calculations by reporters, accounting for 97.8% of the main business revenue; air cargo revenue was 243 million yuan, an increase of more than 90% year-on-year, accounting for 2.2% of the main business revenue.
Overall, Juneyao Airlines' passenger traffic in the first half of the year reached 13.6947 million, an increase of 18.5% year-on-year; among which the number of domestic passengers increased by 10.37% year-on-year, and the number of international passengers increased by more than 2 times year-on-year. In the first half of the year, Juneyao Airlines' passenger load factor was 84.51%, an increase of 3.83% year-on-year, among which the international passenger load factor increased by 10.7 percentage points year-on-year to 77.14%.
Juneyao Airlines has been increasing its international capacity this year. According to Juneyao Airlines' flight operation plan for the summer and autumn seasons, its European destinations will be further expanded to developed countries in Western Europe, and the number of long-distance intercontinental routes will reach 6, with direct flights to Northern Europe, Western Europe and Southern Europe, including Finland, the United Kingdom, Belgium, Italy and Greece.
According to the semi-annual report, in the first half of the year, Juneyao Airlines increased its international destinations to 19, and the number of flights also increased significantly compared with the same period last year, and achieved an increase of more than 20% compared with the same period in 2019. The company opened new routes such as "Shanghai-Bali", "Shanghai-Penang", and "Shanghai-Athens", while increasing the frequency of existing flights to Tokyo, Osaka, Jeju, Bangkok, Singapore, etc., and continued to expand its influence in Southeast Asia and European markets. In July, Juneyao Airlines also opened new "Shanghai-Manchester/Brussels" routes in Europe, and intercontinental routes have begun to take shape.
From an industry perspective, since February 2024, the international air passenger market has recovered at a rate of over 80% for five consecutive months, continuing its rapid recovery trend.
The overall operating pressure of airlines in the second quarter is still relatively high, and the main indicators of the civil aviation industry are expected to hit a record high throughout the year
Juneyao Airlines is one of the few listed airlines that continued to make profits in the first half of this year.
According to the semi-annual performance forecasts released by various airlines, the three major central aviation enterprises, Air China (601111.SH), China Eastern Airlines (600115.SH), and China Southern Airlines (600029.SH) are expected to have not yet turned losses into profits, mainly due to the challenges faced by the recovery of the international market, intensified competition in the domestic market, and price fluctuations caused by factors such as oil prices and exchange rates. However, they continued to achieve significant reductions in losses compared with the same period last year.
As for private airlines, the fourth largest airline HNA Holdings (600221.SH) expects to reduce losses by about 58% to 63% year-on-year, mainly due to the fact that international routes have not yet fully recovered, oil prices continue to run at high levels, and exchange rate fluctuations. Among them, exchange losses have a significant impact. If exchange losses are excluded, the net profit attributable to the parent company in the first half of the year is expected to be positive. Spring Airlines (601021.SH) expects profits to hit a record high, up 54% to 60% year-on-year. China Express Airlines (002928.SZ) expects to turn losses into profits. On the one hand, it benefits from the continuous improvement in civil aviation travel demand. On the other hand, the company seizes the opportunities brought about by changes in market demand such as regional tourism and off-season travel, and promotes the increase in flight volume through the opening of new regional routes.
Before Juneyao Airlines, Cathay Pacific Airways was the first to release its semi-annual report. According to the performance forecasts released by various airlines, Cathay Pacific Airways has become the most profitable Chinese airline in the first half of the year, benefiting from the strong demand for tourism and the steady performance of its cargo business. In the first half of the year, Cathay Pacific Airways achieved revenue of HK$49.604 billion, a year-on-year increase of 13.8%; and achieved a profit attributable to shareholders of HK$3.613 billion, a year-on-year decrease of 15.3%.
From the perspective of the industry's profitability in the first half of the year, according to the China Air Transport Association on July 15, the operating pressure on airlines in the second quarter was still relatively high, and air cargo showed a trend of "both volume and price rising". Since the second quarter, affected by the decline in passenger revenue, the significant year-on-year increase in oil prices and the depreciation of the RMB exchange rate, the overall operating efficiency of airlines has declined, with an overall loss of 7.2 billion yuan in the second quarter, of which the loss in June was significantly narrowed. In the first half of the year, the overall cumulative loss of airlines was 4.71 billion yuan, a year-on-year reduction of 12.42 billion yuan. A total of 13 airlines achieved profitability, of which 2 airlines had profits exceeding 1 billion yuan.
According to the Civil Aviation Administration's forecast of the civil aviation industry's transportation market trends in the second half of the year, the civil aviation transportation market is expected to grow steadily, domestic passenger traffic will continue to grow naturally, international passenger traffic will recover faster, cargo and mail transportation demand will be stable, and the industry's efficiency and benefits will increase slightly. Looking at the whole year, the main indicators of civil aviation transportation will exceed 2019 and set a record high.
In an interview with The Paper in June this year, Cheng Xi, general manager of Juneyao Airlines' business department, said that with the gradual resumption of international routes, summer civil aviation travel volume is expected to increase significantly year-on-year. Juneyao Airlines' international routes have exceeded the same period in 2019, and its international share will continue to increase in the future.
IATA predicts that market demand will continue to be released during the summer travel season, and passenger traffic is expected to reach about 136 million, with an average daily passenger traffic of more than 2.1 million, about 10% higher than the same period in 2019, and the supply and demand structure is close to balance. However, attention should also be paid to the normalization of high-speed rail competition, the decline in passenger revenue levels, and the recovery of international route operations. In order to achieve the goal of turning losses into profits throughout the year, it is recommended to continue to optimize the route network, continue to strengthen cost control, strive to increase revenue levels, and continuously improve service quality to better meet market demand.
The Paper reporter Shao Bingyan and intern Guo Yichen
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