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China's Aviation Industry Loses 560 Million Yuan in First Half
The Chinese aviation industry suffered 560 million yuan in losses during the first half due to the increase in passengers and dropping ton-per-kilometer shipping costs. After paying 1.27 billion yuan for the increase in oil prices, the entire industry lost 560 million yuan.
Ma Tiesheng, director of Civil Aviation Association of China said today that if the adjustment factors of oil price are eliminated and calculated according to constant price, the whole industry would lose 1.15 billion yuan more compared to the same period last year.
During the first half, consumers witnessed better benefits in China's aviation industry. Standardizing ticket prices on domestic flights proved to be effective. The earnings level of tons-per-kilometers shipping on domestic flights was 930 million yuan between April to June, a 0.29 yuan increase compared to March. Total revenues increased to 230 million yuan. The sales agent market continued to undergo reforms, hand-written flight tickets have been phased out. Airlines continued to absorb surplus transportation capacity. Business management techniques continued to improve by applying cost target management to lower operational costs. Personnel were streamlined and wages were cut in money-losing companies. Wage costs accounted for 5.8% of the total cost.
The ratio of fuel cost to business cost increased from 22% to 31%, adding 1.27 billion yuan in cost expenditures for the entire industry. In addition, 16 airplanes were added, which increased the total cost by a large margin.
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