188bet sports betting app download(01055)，This giant in China’s civil aviation industry，Always gives people the feeling of being big but not strong。

The largest company in Asia in terms of scale, but its performance has always ranked third in 188bet sports betting app download.

First half of the year，Affected by the health incident，The international market is almost stagnant，It originally gave 188bet sports betting app download a good opportunity to buck the trend，But China Eastern Airlines (00670) took the lead，China Eastern Airlines ranks first in performance。

Third Quarter，188bet sports betting app download is sharpening its knives，Song all the way，Massive deployment of shipping capacity to the country，It has achieved certain results to some extent。

Brother Yi has made a prediction in advance that 188bet sports betting app download may have made a profit.

According to the data just released，188bet sports betting app download has achieved a major reversal in performance in the third quarter。

188bet sports betting app download’ profit in the third quarter exceeded 1 billion yuan

As expected，Third Quarter，188bet sports betting app download bucks the trend，Became the only one of the four major airlines to achieve quarterly profit。

188bet sports betting app download of 2020 (June-September):

188bet sports betting app download operating income 263.900 million yuan，39 year-on-year decrease.7%，Least decrease among the four major airlines。

Total profit 10.800 million yuan，67 year-on-year decrease.1%。

Net profit 9.300 million yuan，67 year-on-year decrease.1%，It is the only one of the four major 188bet sports betting app download with a decrease of less than 100%。

It is the only one among the four major 188bet sports betting app download to achieve profitability.

With profit in the third quarter，188bet sports betting app download also achieved lead in one fell swoop，First three quarters of 2020，In the four major flights，188bet sports betting app download’ losses have been reduced to the minimum。

The first three quarters of 2020 (January to September):

188bet sports betting app download operating income 653.500 million yuan，Down 44% year-on-year，Also the smallest decrease among the four major airlines。

Total profit-107.400 million yuan，Decreased by 277 year-on-year.86%。

Net profit-85.4.6 billion yuan，Decreased by 287 year-on-year.13%。

The net loss amount is also the smallest among the four major airlines。So what exactly made 188bet sports betting app download counterattack from being the least profitable among the three major airlines in the past to becoming the number one airline in the third quarter？

Capacity goes in the opposite direction

We know that over the past few years，188bet sports betting app download has the fastest capacity expansion。

The original fleet is the largest，But the introduction speed has not slowed down at all，It seems that the dream of the first aviation company in the universe will be carried out to the end。

Unexpectedly, a health incident interrupted 188bet sports betting app download’s dream，The pace of singing all the way is blocked。

188bet sports betting app download quickly adjusts plans，Suspend the introduction of transportation capacity，Accelerate capacity withdrawal。

As of the end of September 2020，188bet sports betting app download operates a total of 854 aircraft，Reduced by 7 aircraft compared to 861 aircraft in 2019。

Fleet size decreases instead of increasing，This is almost unique in the history of 188bet sports betting app download。

Fleet size reduced，Relieves the pressure on market investment to a certain extent，Also reduces some cost pressure。

However, the fleet is reduced，But the intensity of investment in the market has not weakened at all。

Entering the third quarter，188bet sports betting app download increases its efforts to put more capacity into the domestic market。

Take September as an example，188bet sports betting app download’s domestic market capacity (ASK) has achieved growth。

Available Seat Kilometers (ASK) 211 for the month.700 million seat kilometers，YoY growth of 6.6%，Monthly increase of 6.3%。

The passenger load factor also continues to increase，September is 78.5%，Decrease by 3 year-on-year.8 percentage points，Mom-on-month increase of 4.6 percentage points。

In this case，Domestic passenger traffic reached 11.1 million，YoY growth 2.5%，Exceeds the national civil aviation average。

188bet sports betting app download is the largest airline in China，The degree of recovery has exceeded the average level of civil aviation，The effect can be imagined。

Of course, this is only a positive improvement brought to 188bet sports betting app download in terms of transportation capacity and production performance。

In addition，What other factors can 188bet sports betting app download counterattack？

Benefit from five major aspects

Brother Yi thinks，It also benefits from the following five objective factors:

First, the performance of its holding subsidiary Xiamen 188bet sports betting app download has improved.

We know that Xiamen Airlines is a holding subsidiary of 188bet sports betting app download，Xiamen Airlines’ profits are merged into 188bet sports betting app download’ financial statements。

In other words，The profits created by Xiamen Airlines are the profits of 188bet sports betting app download，188bet sports betting app download’ profits include Xiamen Airlines’ profits。

Third Quarter，Xiamen 188bet sports betting app download’ performance has improved significantly，Profitable for three consecutive months，Achieved total profit of 800 million yuan in the quarter。

In other words，188bet sports betting app download 10 in the third quarter.Of the total profit of 800 million yuan, 800 million yuan comes from Xiamen Airlines。

So，People always say that we should raise children to provide for old age，The key is to have an excellent son。

The second is the performance improvement brought by exchange income.

188bet sports betting app download has the largest aircraft，Therefore the US dollar liability is also the largest，The resulting financial costs are generally the highest。

But it’s different from previous years，This year, due to Trump’s increased economic stimulus，Super currency，The dollar has been depreciating all the way，Therefore the RMB appreciation is not small。

Third Quarter，Due to RMB appreciation，188bet sports betting app download’ financial expenses are -6.600 million yuan，Reduced by 45 year-on-year.700 million yuan，The largest reduction in financial expenses among all companies。

The 188bet sports betting app download advantage is the largest share of the domestic market.

188bet sports betting app download is the largest airline in my country，Has the highest proportion in the domestic market。

Take September as an example，Domestic passenger transportation volume of civil aviation is 47.94 million，188bet sports betting app download is 11.1 million passengers，The proportion reached 23.2%。

Therefore，Domestic market recovers rapidly，The one with the biggest profit is 188bet sports betting app download。

Also，Compared to Air China (00753) and China Eastern Airlines，188bet sports betting app download also has the smallest international market share，Therefore, the impact brought by the international market is relatively smaller。

Fourthly, the profitability of the freight business has brought about improvement in performance.

The passenger transport market is sluggish this year，But the air cargo market is indeed booming like never before，Cargo 188bet sports betting app download almost always make money。

Air 188bet sports betting app download Cargo, a subsidiary of Air 188bet sports betting app download, is under the Air 188bet sports betting app download Group，Therefore its profits are not included in the financial report of Air 188bet sports betting app download。

Same，188bet sports betting app download Eastern Logistics, a subsidiary of 188bet sports betting app download Eastern Airlines, is also a subsidiary of 188bet sports betting app download Eastern Airlines Group，The realized profits will not be merged into the statements of 188bet sports betting app download Eastern Airlines。

Only 188bet sports betting app download’ cargo business is still under 188bet sports betting app download Co., Ltd.，Therefore, the profit of 188bet sports betting app download also includes the profit of cargo business。

The fifth is the change in accounting estimates.

Brother Yi once wrote an article，188bet sports betting app download passed accounting adjustment，Originally, the depreciation of aircraft engine replacement parts was based on the straight-line method，Now adjusted to workload method。

Calculated based on 188bet sports betting app download，Quarter 2 only，Due to adjustment of depreciation method，Reducing losses for China Southern Airlines6.600 million yuan。

Although the market is recovering in the third quarter，Investment is increasing，However, there is still a certain gap between 188bet sports betting app download’ capacity investment and last year。

Due to accounting changes，Brother Yi estimates that 188bet sports betting app download will still reduce its losses by 500 million yuan in the third quarter。

As the saying goes, if people work hard, God will help.

188bet sports betting app download achieved major performance reversal in the third quarter，Brother Yi believes that there are subjective results of hard work，It is also aided by many objective favorable conditions。

Anyway，Brother Yi wishes that the performance of 188bet sports betting app download, Asia’s largest airline, will be as dazzling as its scale。

*Source of this article: WeChat public account "Civil Aviation Wings" (ID: caacwing), author: Yijia Zhiyu, originalTitle: "Why 188bet sports betting app download (01055) achieved a major reversal in its performance in the third quarter？》.