Air Macau turns loss into profit

Thursday, March 31, 2011
Issue 1273, Page 7
Word count: 290
Published in: Macau Daily Times

By Poyi (Natalie) Leung

Flag carrier Air Macau has stepped out of a five-year continuous loss and posted a record high net profit of over MOP 231 million in 2010.

Chairman Zhao Xiaohang told reporters after yesterday’s shareholders meeting that the efforts to transform Air Macau’s market and to reduce costs since 2008 have finally paid off and are “very successful”, making the carrier report “the best performance ever” last year.

The operating income also surged 39 percent when compared to 2009.

Since 2005 Air Macau’s expenses continued to exceed its revenues and in 2009 a loss of MOP 258 million was recorded.

The highest net profit the carrier has made before 2010 was some MOP 110 million.

“I believe that we will report a better performance in 2011,” Zhao predicted, but did not disclose the estimated growth.

Through increasing utilisation of the planes, cutting down costs and enhancing internal management, the chairman said Air Macau has lowered the cost per flying hour.

In addition, he pointed out that the airline has “completely shifted from the Cross-Strait market to one that focuses on Macau”. In other words, Air Macau has changed from providing mainly “transit services to point-to-point services”.

This year, Zhao disclosed that the carrier will strive to launch two to three new routes and/or increase the frequency of various existing flights.

He said the company is studying which destinations will have a promising prospect, adding that population and tourism policies such as whether or not the Individual Visit Scheme is in place will be some of the considering factors.

The chairman stressed that, however, the Mainland is a “very important market” to Air Macau.

Nevertheless, he said one more flight will be added shortly to the current fleet to Shanghai Hongqiao Airport.

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