Juneyao Airlines posted an operating profit of CNY691 million ($96.2 million) in the first half of the year, down 13.6% from the previous corresponding period.

Revenue for the six months ended 30 June grew 16.3% to CNY8.06 billion, while expenses increased 20% to CNY7.58 billion. These were attributed mainly to network expansion, the airline notes.

ASKs for the half year grew 16%, with RPKs increasing 15.5%. This led load factors to dip 0.4 percentage points to 85.4%.

Attributable net profit dipped 6.3% to CNY579 million.

Cash and cash equivalents at the end of the period was CNY2.27 billion, higher than the CNY1.39 billion it started the year with.

As of 30 June, the Star Alliance connecting partner had 72 aircraft made up of 68 Airbus A320 family aircraft and four Boeing 787s. Its low-cost unit 9 Air had 18 Boeing 737s.

Looking ahead, Juneyao has flagged geopolitical tensions, fuel prices, as well as currency fluctuations as potential risks to its bottomline. Still, the airline says it will continue to improve its cost efficiency.

Source: FlightGlobal.com