On January 26, 2024, the Spring Festival was officially launched.
According to statistics from Xinhua News Agency, from January 26 to March 5, the 40-day Spring Festival travel is expected to reach a record high of 9 billion people across the country. The cold wind can't stop the wanderers who are wandering outside from returning to their hometowns, and many airlines have encrypted flights in popular directions, and the average daily guaranteed flights will reach 1650,000 classes.
Among them, Spring Airlines, known as the "green train in the sky", is expected to carry out more than 20,000 flights and more than 3.4 million passengers during the Spring Festival travel period, an increase of more than 30% and 40% respectively compared with 2019, with a strong growth momentum. Spring Airlines will resume, add and reinstate 64 routes, and the number of international flights will increase by 12 year-on-year85%。This initiative not only demonstrates the importance that Spring Airlines attaches to the needs of its passengers, but also demonstrates its ability to respond flexibly to changes in the market.
Although Spring Airlines is positioned as a low-cost carrier, its profitability should not be underestimated, leaving no other airline in the industry in the dust.
Previously, Spring and Autumn released the third quarter report for 2023, and achieved revenue of 141 in the first three quarters of 20230.3 billion yuan, +113 year-on-year52%；The net profit attributable to the parent company was 267.7 billion yuan, an increase of 44 percent year-on-year$1.4 billion; Realized net profit of 257.4 billion yuan, profitability rose. In the third quarter of 2023, the operating income was 607.2 billion yuan, a year-on-year increase of +10575%；The net profit attributable to the parent company was 183.9 billion yuan, an increase of 23 percent year-on-year3.1 billion yuan, the highest performance in a single quarter in history. In the first three quarters of 2023, Spring and Autumn is all profitable, which is unique among China's listed airlines.
Why is Spring Airlines so profitable? Perhaps the answer can be found in its "fare". Spring and Autumn is not only lower than other airlines' fares, but also from time to time to release 199 yuan, 299 yuan spike prices to attract consumers. Behind the ultra-low fares is the ultra-high aircraft utilization rate and ultra-low operating costs. Experience is paramount or saving money is the priority, and travelers have their own considerations. Spring Airlines' market positioning is very clear: for the most sensitive consumer groups, such as students who do not have a stable economy or tourists who do not pursue the comfort of transportation.
Money is saved", Spring Airlines is steadfast in its adage. The underlying logic is easy to understand, and one more person is not only to earn an extra income, but also to dilute the cost. According to the quarterly report, the company's overall available seat kilometres increased by 46 year-on-year49%。In addition to low-cost operating models and precise market positioning, airlines can generate revenue through efficient fleet management, innovative sales strategies, rolling budget adjustments, internal controls and continuous improvement, flexible operational strategies, and diversified revenues**. The combination of these factors has enabled Spring Airlines to gain an advantageous position in the market competition and achieve sustained profitability and growth.
Today, the significance of the popularization of low-cost airlines, represented by Spring Airlines, is to let the aircraft take off the noble "skin" and return to the most simple value of the means of transportation itself, so that the aircraft is more popular and close to the public. This shift has not only made long-haul travel more affordable, but also more opportunities for more passengers to experience flying, as evidenced by the slogan of AirAsia, Asia's first low-cost airline: "Now everyone can fly". Disenchantment and low prices boost each other, making the Spring and Autumn Festival more and more bright in people's "love and hate".
In the "big test" of the Spring Festival, look forward to the performance of Spring Airlines!