China Eastern Airlines drop down in premium passenger revenue for 2013

China Eastern GM Ma Xulun said previously the carrier’s passenger makeup has gradually changed as premium passenger boardings have experienced a clear drop resulting in much lower airfares; he expects the trend to continue for a long time owing to stricter new government policies.


Airline has seen a drop of CNY1.09 billion ($179 million) in premium passenger revenue for 2013 owing to the global economic recession and China’s new policy for government officials to be more thrifty, giving up their previously extravagant lifestyles.
Industry analysts said premium passenger revenue accounts for about 8% of domestic carriers’ total operating revenue, so the decline of premium passenger revenue will not have a major impact on Chinese airlines’ financial performance, but owing to the economic recession domestic carriers rely on exchange gains to make book profit as economy class revenues are also falling.
The Shanghai-based carrier’s premium passenger boardings fell 1.022 million in 2013. Last year, many domestic airlines also experienced reductions in premium passenger boardings of 10% to 20%.