Hainan Airlines has reported first-half net income of CNY483 million ($78.5 million), a decline of 25% over net profit of CNY647 million during the same period last year.
Operating revenue increased 13% to CNY18 billion for the first six months of this year, while operating expenses climbed 15% to CNY14.5 billion.
First-half passenger numbers rose 15.7% to 16.92 million, with an average load factor of 86.23%, up 0.16% over H1 2013. Cargo traffic volume grew 2.45% to 167,500 tonnes.
The Haikou-based carrier cited premium market demand decline resulting from a slowdown in economic growth as the main reason for the decline in profit, although additional factors such as a depreciation in the Chinese yuan cannot be ruled out.
The fall in the yuan has affected all of China’s "big three" carriers: Air China, China Eastern and China Southern.