Total revenues increased by 24.37 % to RMB 10.16 billion
Attributable profits to shareholders were RMB 151 million
Traffic volume totalled 1.84 billion tonne-kilometres, up 27.48%
Average aircraft daily utilisation rose 0.4 hours to 8.1 hours
Hong Kong, 25 April 2000 - Leading aircraft services provider The China Eastern Airlines Corporation Limited ("Eastern Airlines" or the "Group") announced its attributable profit to shareholders was RMB 151 million for the year ended 31 December 1999. In 1998, the Group suffered a net loss of RMB 481 million.
Lifted by the economic recovery of the Asian region, the Group experienced a hefty rebound in flight demand in 1999. Turnover increased 24.37 per cent to RMB 10.16 billion compared to a year ago. Traffic volume grew 27.48 per cent to 1.84 billion tonne-kilometres. No dividend is recommended.
Chairman Mr Li Zhongming attributed the good performance to a remarkable increase in the passenger traffic volume in both domestic and international flights as a result of the recovery of the Asian economy. "In particular, tourism in Korea and Southeast Asian region has grown which helped improve the Group's performance," said Mr Li.
"Strengthened market supervision by the Civil Aviation Administration of China [CAAC] and the regulation of domestic pricing of airfares also helped by stabilising the airfares," he said.
Average aircraft daily utilisation increased by 0.4 hour to 8.1 hours compared with the previous year. Passenger traffic grew 21.72 per cent to 13. 25 billion passenger kilometres, boosting passenger revenues by 22.76 per cent to RMB 8.03 billion. This accounted for 79.02 per cent of total revenues of the Group.
Within the passenger traffic breakdown, international passenger traffic during the period under review recorded the highest increase of 24 per cent. Domestic routes and Hong Kong routes increased respectively by 19.36 per cent and 22.05 per cent.
International passenger traffic volume amounted to 5.83 billion passenger-kilometres in 1999. Revenue from international traffic was RMB 2.31 billion, an increase of 17.43 per cent year-on-year.
Domestic passenger traffic reached 5.66 billion passenger-kilometres. Revenues generated by domestic traffic grew 32.16 per cent to RMB 4.00 billion in 1999.
Passenger traffic volume for Hong Kong routes reached 1.75 billion passenger-kilometres. This generated revenue of RMB 1.71 billion, up 11.13 per cent on the previous year.
The Group's cargo operations also recorded exceptional growth of 40.33 per cent to 689 million tonne-kilometres over the previous year. Cargo transportation revenues amounted to RMB 1.73 billion. Cargo operations accounted for 17.02 per cent of total revenues.
Operating cost was RMB 9.14 billion, up 14.32 per cent compared to a year ago due to an increase in costs for operating leases and depreciation charges for newly introduced aircraft, higher aircraft fuel expenses and higher take-off and landing charges in Hong Kong at the Chek Lap Kok Airport. However, the Group managed to lower its operating cost per unit by 3.5 per cent with effective cost-control measures.
The Group suffered an exchange loss of approximately RMB 111 million due to the appreciation of Japanese Yen in 1999.
Looking ahead at the outlook for the year 2000, Mr Li Zhongming said, "The integration of the world economy, and in particular the quicker pace of China's entry into the World Trade Organisation, will have an important impact on domestic airlines. The macro-economic measures employed by the CAAC should also help stabilise airfares and thus exert positive impact on the operating environment."
"In preparation for future growth, the Group will continue strengthening its fleet and introducing more code-sharing arrangements with other airlines. Growth in cargo traffic will also be a key business focus in 2000."
Listed on the Hong Kong Stock Exchange and the New York Stock Exchange in February 1997, and on the Shanghai Stock Exchange in November 1997, China Eastern Airlines Corporation Limited is one of the three largest air carriers in China and the primary air carrier serving Shanghai, China's eastern gateway. As at 31 December 1999, the Group operated 183 routes, of which 156 were domestic routes (including 12 routes to Hong Kong) and 27 international routes. It operated 1,700 scheduled flights per week, covering 65 domestic and international cities. The Group has a fleet of 69 aircraft, including 53 passenger jet aircraft with seats over 100 each and two jet freighter aircraft.
| Issued by: | China Eastern Airlines Corporation Limited |
| Through: | Forrest International Limited |
| Contact: | Sauw Yim (Tel: 2501 7938) |
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