Management Discussion of June 2011 Operating Data
Passenger traffic has shown a steady year-over-year growth across the board during June 2011. As for month-over-month performance, while international traffic has increased, domestic and regional traffic decreased slightly. In cargo, international and domestic Revenue Freighter Tonne Kilometres (RFTK) and freighter tonnage carried all achieved year-over-year increases while regional cargo routes were the exception to this trend. For month-over-month performance, regional cargo routes showed a slight rise while the other sectors experienced a decline in performance.
Passenger traffic for June achieved a higer year-over-year growth than the increase in capacity. Passenger capacity, measured in Available Seat Kilometres (ASK), was up 5.7% year-over-year while passenger traffic, measured by Revenue Passenger Kilometres (RPK), rose by 9.4%. Capacity on domestic routes increased by 4.4%, while RPK climbed 9.3% year-over-year. Capacity on international routes grew 7.9%, with RPK increasing by 9.0%. Capacity on regional routes expanded 4.5%, with RPK rising by 16.3%. The passenger load factor was 83.2%, up 2.9 percentage points year-over-year. The passenger load factor for international, domestic and regional routes increased by 0.9, 3.8 and 8.1 percentage points respectively year-over-year.
Cargo capacity, measured in Available Freighter Tonne Kilometres (AFTK), rose 1.5% year-over-year in June. Revenue Freighter Tonne Kilometres (RFTK) increased by 3.3%, and freighter tonnage carried increased by 4.7%, compared with June 2010. The cargo load factor was 62.1%, an increase of 1.1 percentage points year-over-year.
Starting from 15 June, the company launched a new international flight between Beijing and Milan three times a week. And starting from 16 June, the company also launched another new international flight between Chengdu and Tokyo two times a week.
During the month, Air China purchased a total of 268,000 tonnes of jet fuel at an average price of RMB7,654 per tonne, a year-over-year surge of 35%. The average jet fuel purchase price at international airports was RMB6,914 per tonne, and the average purchase price of jet fuel for international flights at the top six Chinese airports was RMB7,205 per tonne, representing steep increases of 40% and 33% year-over-year, respectively. The average jet fuel purchase price for domestic flights was RMB8,090 per tonne, a rise of 34% compared with June last year.
In June, the company made the following adjustments to jet fuel surcharges:
Effective Date (Based on Ticket Issue Date) |
Route |
Previous Rate
(Per Head Per
Sector) |
New Rate
(Per Head Per
Sector) |
1 June |
Mainland China to Hong Kong |
RMB 187 |
RMB 198 |
Hong Kong to Mainland China |
HKD222 |
HKD236 |
Mainland China to Japan |
RMB 190 |
RMB 370 |
Japan to Mainland China |
Yen 2500 |
Yen 4500 |
(Excluding Mainland China/ Japan) to Japan |
USD 26 |
USD 55 |
The Philippines to Mainland China |
RMB 310 |
RMB 400 |
Thailand to Mainland China |
RMB 400 |
RMB 450 |
Indonesia to Mainland China |
RMB 350 |
Vietnam to Mainland China |
RMB 310 |
RMB 400 |
Myanmar to Mainland China |
RMB 350 |
Pakistan to Mainland China |
RMB 250 |
RMB 300 |
Nepal to Chengdu |
RMB 310 |
RMB 360 |
UAE to Mainland China |
RMB 420 |
RMB 450 |
Australia to Mainland China |
AUD90 |
AUD105 |
Europe(Excluding UK, Russia, Turkey)to Mainland China |
EUR 110 (France EUR 105) |
EUR 120 |
During the month, the company added one B737-800 aircraft, one A320 aircraft and one business jet, while retiring one B737-300 aircraft. As of the end of June, Air China operated a fleet of 292 aircraft.
* Please note that Shenzhen Airlines and Air Macau are excluded from the above figures