1. Overall judgment

In 2016, the revenue growth rate of China’s five largest listed 188bet app download was lower than the growth in capacity and volume，Input-output efficiency decreases。China’s civil aviation demand remains strong，Consumers also enjoy the benefits of low oil prices。

Operating profits are generally not high，“Subsidy income” adjusts net profit。Non-operating income has also become the main competitiveness of 188bet app download。

Operation at low aviation fuel costs，But jet fuel costs are still higher than the global average。Chinese companies’ aviation fuel costs are about 20%-25% higher than the global average。

Exchange losses from RMB depreciation still strongly affect profits，Almost all losses in Q4，This is why the full-year profit is lower than the profit in the first 11 months and the profit in the first three quarters。Financial costs have begun to decline and remain at a high level，Companies actively adjust capital structures to cope with exchange rate risks。

1. HNA leads the increase in operating income, 188bet app download Southern ranks first in scale

China Southern 188bet app download fleet size、Passenger transportation volume and passenger turnover、Still ranked number one among China 188bet app download in terms of sales revenue。

The growth rate of operating income is only about 30%-50% of the increase in transportation capacity。Three major 188bet app download and Spring and Autumn are growing slowly。

Hainan 188bet app download’ rapid growth 15.48%，Double-digit growth，About three times that of other opponents。

China Southern 188bet app download is the largest airline in China，Fleet size、Business volume、No. 1 in operating income in the country。The gap between Air China and China Southern narrows again。

2. Air 188bet app download is the most profitable, while Spring and Autumn profits fall sharply

Air 188bet app download net profit 77.6.4 billion yuan stands proud among the crowd，Growth 7.54%，Growth is greater than revenue growth，Profit margin improvement。

China Southern 188bet app download has the largest net profit growth，Mainly due to the significant reduction in financial costs。Actively preventing exchange rate risks has obvious effects，The 3% cost of China Southern 188bet app download’ newly issued RMB bonds is also much lower than the other 6% cost。

The profits of Spring 188bet app download and China Eastern 188bet app download fell, and the profit margin of HNA dropped.

3、Air 188bet app download has the largest assets，HNA Spring and Autumn Assets are Expanding Rapidly

The growth rate of the assets of the three major 188bet app download is basically consistent with the investment in transportation capacity.

Air China has the largest assets，Advantage comes from net assets，The lowest asset-liability ratio among the three major 188bet app download。

HNA expands asset size through equity financing，Vigorously improve the capital structure；Spring 188bet app download expands asset size through debt，The cost of bond issuance is higher，But the overall debt ratio is not high。

4. The asset structures of the five companies are all benign

The asset-liability ratios of the five companies are all in the range of 54%-76%，In a benign area globally。

Hainan 188bet app download expands scale through equity financing，Net assets have exceeded China Southern 188bet app download and Air China，And the debt ratio dropped to 54%。

Air China has the highest net worth among the three major 188bet app download，Debt ratio is only 65.88%。

2. Overall assessment of operating capabilities: main factors affecting profits

1. Chinese 188bet app download have obvious jet fuel cost disadvantage

According to IATA estimates, the proportion of global airline fuel costs in 2016 will be less than 20%，China 188bet app download is basically around 25%，Obvious disadvantages。The high cost of aviation fuel will reduce the net profit of Chinese 188bet app download by about 3-5%，This should account for half of the airline’s net profit。

The proportion of jet fuel cost of Chinese 188bet app download has been higher than the global average for two consecutive years。

The high cost of aviation fuel is closely related to 188bet app download’s supply system。Three barrels of oil and 188bet app download National Aviation Oil both "contributed" 。

2、Exchange still seriously affects profits，Everyone has begun to respond actively

Exchange rate risk affects profits，But even if the U.S. dollar raises interest rates，The RMB interest rate is still several times the US dollar interest rate。At the same time，Credit differences between different companies，As a result, the cost gap of the same RMB bonds is also very large。For the capital-intensive aviation industry，Capital structure and capital costs seriously restrict profitability，Capital management and capital efficiency are the main battlefields of airline financial operations。

High financial costs (mainly derived from exchange losses due to the depreciation of the RMB) still seriously erode profits。

Actively adjust the structure of US dollar bonds in response to the risk of exchange rate depreciation。Financial expenses of the four major 188bet app download have declined，China Southern 188bet app download has dropped significantly by more than 25%。China Southern 188bet app download’ dollar debt ratio has dropped to 30%，The cost of newly issued RMB bonds is also less than 3%。

The financial cost of bond issuance in Spring and Autumn Period has increased, and the cost of bond issuance is also higher.

3. Hainan 188bet app download has the highest financial cost

Among the three major expenses, the sales expenses of the four major 188bet app download are reduced by 10%，Only Spring 188bet app download rose 10%。Administrative expenses increased and decreased。

Hainan 188bet app download financial expenses account for 11 operating income.12%，About twice that of the three major 188bet app download，Four times of Spring and Autumn。

HNA assets have low efficiency in generating operating income。Optimize capital structure and reduce capital costs，Finding a balance with capital operation needs。

4. Non-operating income is very different

Non-operating income has become an important factor affecting China 188bet app download，It is Chinese characteristics，It is also a decision of the development stage of China’s civil aviation。The value of aviation’s external economic premium is the economic basis for route subsidies and government subsidies。In addition to the main business of 188bet app download，Strive for maximum subsidy income，Promote local economic opening up and social vitality，It is also the economic value and social responsibility of 188bet app download。

The non-operating income of China Eastern 188bet app download and China Southern 188bet app download is about 4-5 times that of Air China。Air China’s non-operating income is only slightly higher than HNA and Spring and Autumn。

Subsidy income is the main source of non-operating income，Subsidy income is also income and profit，Especially for Air 188bet app download。

Strive to get the maximum subsidy，Operating non-operating income is also an important business tool for 188bet app download。

3. Profitability evaluation: both hands must be strong

1. Air 188bet app download leads the way in operating profit

Operating profit reflects the operating capabilities of the main aviation business，Air China leads the way，About three times that of China Southern 188bet app download，Ten times that of China Eastern 188bet app download。

China Eastern 188bet app download’ operating profit increases by 324.77%，Still less than 1 billion。

HNA’s operating profit declined slightly。Spring 188bet app download’ operating profit dropped sharply by as much as 68%，Sales expenses and financial expenses have increased significantly。

2. Air 188bet app download has the strongest operating capability in its main aviation business

Air 188bet app download has the highest operating profit margin，And only Air 188bet app download’s operating profit margin is higher than its net profit margin。The aviation main business has the strongest operating capabilities。

China Eastern 188bet app download’ operating profit margin is less than 1%，At break-even point，Profit mainly non-operating income。

Chunqiu’s operating profit margin is only 2.43%，Even if profits fall，Net profit margin reaches up to 11.28%，Non-operating income has a large impact。

3、Operate the main business and obtain non-operating income，Are there two business methods？

The main business of aviation is fundamental; to obtain profits, both hands must be tough!

四、PK the five major US 188bet app download，Learn progress and transcendence through comparison

Among the top five U.S. 188bet app download by fleet、Operating income、Passenger turnover ranking，American 188bet app download No. 1；Ranked by passenger traffic volume，Southwest 188bet app download ranks first，Ranked by market capitalization，Delta 188bet app download No. 1。

According to transportation turnover (RPK)，China Southern 188bet app download is already comparable to Southwest 188bet app download。But the profits of Southwest 188bet app download can almost cover the overall profits of the three major 188bet app download。

See the difference in comparison；Seeking benchmarks in the gap。China 188bet app download is still on the road！

*Source: Civil Aviation Resources Network，Original author: Zhao Wei，Professor of 188bet app download Civil Aviation Management Cadre College。Original title: "Analysis of 2016 financial statements of China’s listed 188bet app download》