Management Discussion of May 2011 Operating Data
Passenger traffic continued to display steady year-over-year growth across the board in May 2011. As for month-over-month performance, while international traffic increased, domestic and regional traffic decreased slightly. In cargo, international and regional Revenue Freighter Tonne Kilometres (RFTK) and freighter tonnage carried showed various levels of year-over-year and month-over-month declines. Domestic cargo routes were the exception to this trend.
Passenger traffic for May achieved a year-over-year growth exceeding the rise in capacity. Passenger capacity, measured in Available Seat Kilometres (ASK), was up 5.1% year-over-year while passenger traffic, measured by Revenue Passenger Kilometres (RPK), rose by 9.9%. Capacity on domestic routes increased by 3.4%, while RPK climbed 10.2% year-over-year. Capacity on international routes rose by 7.8%, with RPK internationally increasing by 9.2%. Capacity on regional routes expanded 6.8%, with RPK regionally growing by 14.5%. The passenger load factor was 81.8%, up 3.6 percentage points year-over-year. The passenger load factor for international, domestic and regional routes increased by 1.0, 5.0 and 5.3 percentage points respectively year-over-year.
Cargo capacity, measured in Available Freighter Tonne Kilometres (AFTK), rose 1.6% year-over-year in May. Revenue Freighter Tonne Kilometres (RFTK) declined by 0.7%, and freighter tonnage carried increased by 1.3%, compared with May 2010. The cargo load factor was 60.4%, an increase of 1.4 percentage points year-over-year.
Starting from 11 May, the company launched a new international flight between Beijing-Munich-Athens two times a week.
During the month, Air China purchased a total of 273,000 tonnes of jet fuel at an average price of RMB7,478 per tonne, a year-over-year surge of 31%. The average jet fuel purchase price at international airports was RMB7,223 per tonne, and the average purchase price of jet fuel for international flights at the top six Chinese airports was RMB7,752 per tonne, representing steep 37% and 36% year-over-year increases, respectively. The average jet fuel purchase price for domestic flights was RMB7,467 per tonne, a rise of 27% compared with May last year.
Starting from 25 May, domestic jet fuel price had a further increase of RMB 800 per tonne.
In May, 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 May |
Korea to Mainland China (Except Shandong) |
USD 42 |
USD 62 |
Korea to Shandong |
USD 22 |
USD 32 |
Mainland China to Macau |
USD 35 |
USD 40 |
5 May |
Mainland China to Hong Kong |
RMB164 |
RMB187 |
Hong Kong to Mainland China |
HKD194 |
HKD222 |
Mainland China to |
Thailand/ Singapore/ Malaysia |
RMB400 |
RMB450 |
Indonesia |
RMB350 |
Vietnam/ Philippines |
RMB 310 |
RMB 400 |
Myanmar |
RMB 350 |
Mongolia |
RMB 250 |
RMB 300 |
UAE |
RMB 400 |
RMB 450 |
Australia |
RMB 600 |
RMB 700 |
New Zealand |
RMB 300 |
RMB 600 |
Canada |
RMB 800 |
RMB 900 |
Brazil |
RMB 1600 |
RMB 1700 |
Europe(Excluding Russia/ Turkey) |
RMB 1000 |
RMB 1050 |
Turkey |
RMB 640 |
RMB700 |
20 May |
Mainland China to Korea |
RMB 260 |
RMB 360 |
23 May |
UK to Mainland China |
GBP 75 |
GBP 98 |
26 May |
Domestic routes shorter than 800 km (incl.) |
RMB 60 |
RMB 80 |
Domestic routes longer than 800 km |
RMB 110 |
RMB 140 |
* Please note that Shenzhen Airlines and Air Macau are excluded from the above figures
During the month, the company added one A321 aircraft and one business jet, while retiring one A320 and one TU-204 aircraft. As of end-May, Air China operated a fleet of 290 aircraft.