Fretting About Freight...

In the Chairman's Statement in China Eastern Airlines 2012 Annual Report, Liu Shaoyong pointed out that China Eastern Airlines had reduced its flight capacity for freight in response to a weak demand. He also referenced a streamlining of freight routes. It appears from the figures published by Bloomberg News that this decline in demand is still affecting China Eastern Airlines with the amount of Cargo being carried falling from 130,000 tons in September 2013 to 83,400 tons in February 2014.

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                        Feb.    Jan.    Dec.    Nov.    Oct.   Sept.       YTD
                        2014    2014    2013    2013    2013    2013      2014
==============================================================================
Overall Load Factor    70.9%   69.2%   70.7%   70.5%   70.8%   72.6%     70.0%
 Passenger             83.1%   78.8%   76.0%   76.2%   78.3%   80.1%     80.9%
 Cargo                 50.9%   55.1%   63.3%   62.2%   59.4%   61.2%     53.2%
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Passengers (’000)      6,638   6,803   6,008   6,331   7,038   6,788    13,441
 Domestic              5,590   5,731   5,048   5,394   6,056   5,764    11,321
 International           786     816     723     699     748     784     1,602
 Regional                262     256     237     238     234     241       518
Cargo (’000 Tons)       83.4   116.8   130.6   133.7   124.2   130.0     200.2
 Domestic               41.4    60.6    67.5    68.8    63.6    69.1     102.0
 International          36.2    47.9    54.4    56.0    52.2    52.6      84.1
 Regional                5.8     8.3     8.7     9.0     8.4     8.4      14.1
==============================================================================
                        Feb.    Jan.    Dec.    Nov.    Oct.   Sept.       YTD
                        2014    2014    2013    2013    2013    2013      2014
==============================================================================
                     --------- Revenue Passenger Kilometers (Million) --------
Overall               10,402  10,723   9,317   9,436  10,415  10,317    21,125
 Domestic              7,156   7,252   6,325   6,586   7,364   7,110    14,408
 International         2,887   3,121   2,668   2,529   2,732   2,876     6,008
 Regional                359     350     324     321     320     331       709
                     ------------ Revenue Ton Kilometers (Million) -----------
Overall              1,206.9 1,326.6 1,268.6 1,293.1 1,347.4 1,354.4   2,533.5
 Domestic              685.5   721.6   657.0   682.3   741.9   730.8   1,407.1
 International         482.7   564.2   571.9   571.1   566.7   583.6   1,047.0
 Regional               38.6    40.8    39.6    39.8    38.8    40.0      79.4
                     -------- Revenue Freight Ton Kilometers (Million) -------
Overall                292.5   381.6   437.1   448.6   419.6   431.8     674.1
 Domestic               56.0    81.0    91.1    92.3    86.1    94.6     137.0
 International         229.3   290.2   335.1   345.1   323.2   326.8     519.6
 Regional                7.2    10.4    10.9    11.2    10.4    10.5      17.6
==============================================================================
Note: From January 2010, data has included Shanghai Air.

Source: China Eastern Airlines Corp.

Table Sourced from: Bloomberg Business Week: China Eastern Airlines February Operating Statistics (Table)