May. 8, 2012 (China Knowledge) - China saw civil aviation industry earned RMB 36.3 billion in gross profit last year, reflecting a year-on-year decline of 13.9%, according to a report released by the Civil Aviation Administration of China (CAAC)
, the country's aviation regulator.
Of the total, RMB 27.8 billion was contributed by airlines, down 17.7% from a year earlier, while RMB 4.3 billion gain from the airports, down 16.8% year on year.
In 2011, the nation's operating revenue in civil aviation industry, however, increased by 21.2% from a year earlier to RMB 500.1 billion, including RMB 353.2 billion reaped by airlines, up 17.9% year on year. The airports earned RMB 49.8 billion in operating revenue last year, 15.7% more than that of 2010.
Due to soaring aviation fuel prices last year, fuel costs accounted for around 40% of the total capital expenditure, said analysts.
China's Big-Three airlines, comprising Air China Ltd<601111
>, the largest carrier in the country by market value, China Southern Airlines Co<600029
>, the country's largest air carrier by fleet size, and China Eastern Airlines Co Ltd<600115
>, have submitted applications to start fuel hedging against soaring fuel costs.
Air China's fiscal report for 2011 shows that its fuel costs increased by 44.01% or RMB 10.33 billion, much more than its net profit of RMB 7.48 billion.