The more oil prices rise more pleased Airlines

 The more oil prices rise more pleased
2009-11-18 Yingcai Airlines
Development and Reform Commission said despite rising oil prices not yet in place, but all around the record labels have been refined oil prices. In addition to PetroChina, Sinopec and other enterprises, smiling at the news of rising oil prices the airlines.
In theory, fuel prices hit a new high this year, the tremendous pressure the airline to be painful. 3 in the Civil Aviation jet fuel used per tonne ex-factory price increased 320 yuan to 5190 yuan / ton, taking into account the net price of domestic fuel retail prices to 5,560 yuan / ton. This year, the cumulative increase in fuel prices has reached 27.5%. After preliminary calculations, the price adjustment will increase the Air China, Southern Airlines, China Eastern Airlines and Hainan Airlines as the monthly cost of 69 million yuan, respectively, 83 million yuan, 64 million yuan and 2600 yuan; years of the term, the net impact on earnings per share were -0.05 Yuan, -0.095 million, -0.08 Yuan Yuan, and -0.065.
However, the airlines have every reason to pleased.
the first reason, the cost of fuel increased by the consumers pay.
China National Development and Reform Commission on its website Notice that the domestic price of aviation kerosene RMB 4,140 per ton as the benchmark price of oil, when oil prices exceed baseline, the airline may be appropriate to charge fuel surcharges, but the proportion of carriers less than 20% self-digestion, the fuel surcharge collected section shall not exceed beyond the benchmark oil price of 80%. according to information released by Shenzhen Airlines, 14 zero hour Shenzhen Airlines will be automatically generated in the face fuel surcharge, the specific charges is less than 20 per 800 km, 800 km 40. I believe that other airlines will do the same.
airline revenue geometry? according to calculation Hai Tong Securities to 2010 air passenger traffic up 10% of the forecast, if the fuel surcharge at (800 kilometers below 20 yuan per person , 800 km above 40 yuan per person) complex levy, the annual Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines net earnings per share of 0.07 yuan, 0.20 yuan, 0.12 yuan and 0.10 yuan, will be able to fully offset the fuel prices increase the negative effects.
second reason for hedging floating by the huge loss into profit.
Gengrang airline pleased that, due to rising oil prices, after the aircraft hedging in the oil with the house afford to lose do not know, but has now become profitable .2008, China Eastern and Air China in the oil price hedging transactions brutal huge losses, with Air China in the business, Fukui reached 74 billion, while China Eastern Airlines is 62 billion, account for almost three full-year loss of half of the Aviation Group. SA because there is no participation of luck escaped. But the situation has obviously improved after 2009. Civil Aviation Authority, said Eric, as of mid-September China's civil aviation has achieved profits of 8.0 billion In 2009 the Civil Aviation passenger trips will exceed 200 million people. the case of passenger and cargo airlines really improved it? not. statements earnings numbers for the airlines to make contributions, the rise of crude oil after the airline's fuel hedging profits and exchange rate gains.
three-year quarterly Showing 1 to 9 months, Air China 3.81 billion in profits, an increase of 572.78%; ST first three quarters of net profit of 1.196 billion yuan China Eastern Airlines, an increase of 152%; Southern Airlines net profit of 322 million, an increase of 14 times. hedging reduce the loss of Eastern Airlines and Air China's net contribution to the great. Eastern Airlines July -9 fuel hedging on net changes in fair value of approximately 154 million yuan, the actual delivery of the cash outflow of about 231 million yuan. this part of the income compared to in the first half and not much in the first half Eastern Airlines fuel hedging contracts generated a net income change in fair value of 2.794 billion yuan. Air China July -9 months of fuel hedging changes in fair value net income 554 million; by the International rising oil prices, Air China net fair value of financial derivatives 2.075 billion yuan, of which changes in fair value of fuel hedging gains 2.015 billion yuan (4.664 billion yuan back to fair value, due to real changes in fair value caused by delivery -26.49 million). Air China in the first half of the fuel delivery is not fair value gains on derivative contracts was 1.45 billion yuan.
third reason, state subsidies, the profit surge.
last November, * ST China Eastern Airlines and China Southern Airlines has announced that parent company, China Eastern Group and Southern Group's injection of 3 billion yuan by the SASAC. then 12 months, the Eastern Group countries re-inject 40 billion. Thus, the two aviation groups were 70 billion and total access to 3.0 billion, were to listed companies the way of private placement to the parent company into the listed company, its programs were approved in June of this year. just from this year, the China Southern Airlines announced in January ~ September received government subsidies amounted to 1.566 billion yuan, Air China January to 9 months there have been 962 million yuan of government subsidies. In other words, government funding, the airline's hedging gains will translate into net profit.
on government funding, under the consumers pay, outside the oil prices steadily high, it seems, no matter how low the main business income, an airline profits'd cheers.