Aviation earnings picture on Indian Subcontinent bleak; But North Asia improves

With a 22% increase in net profit in the 12 months ended on 31st March 07 All Nippon Airways is leading the way in North Asia as the Centre for Asia Pacific Aviation reported.
North Asia’s other shining light, Air China, continued its profitable run in the first quarter, with a USD52.2 million net result (a year-on-year comparison was not disclosed).
Elsewhere in North Asia, China Eastern managed to cut net losses by half and China Southern by a third, in the historically challenging first quarter.
The earnings picture on the Indian Subcontinent, on the other hand, is extremely bleak, with Air Deccan losing three dollars for every two gained and Pakistan International Airlines churning out another USD65.1 million net loss in the first quarter (a net margin of -22%), as operating costs surged. Bangladesh Biman Airlines meanwhile continues to haemorrhage cash, and is the subject of an emergency government rescue plan.
The outlook for both regions is for more of the same for the remainder of 2007. North Asia’s carriers should continue to strengthen, although those with a large exposure to the weak freight markets will experience a more difficult trading environment.
02/05/07 Travel Daily News International, Greece

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Categories: General Aviation May 2007