Recently, major domestic listed airlines have successively released their operating results for the first half of 2024, and the four major airlines (Air China, China Eastern Airlines, China Southern Airlines, and Hainan Airlines) are all losing money without exception, with a total loss of 6.36 billion yuan to 8.15 billion yuan for the four companies.
However, in the context of the overall recession of the domestic aviation industry, Spring Airlines stood out from the crowd and maintained excellent business performance.
In the first half of 2024, Spring Airlines achieved two firsts in the domestic aviation industry:
First, the profit is 1.29 billion yuan to 1.34 billion yuan, ranking first in the country and becoming the most profitable airline in China.
Second, the passenger load factor is as high as 91.3%, ranking first in the country and becoming the airline with the highest passenger load factor in China.
Spring Airlines' ability to surpass the four major domestic airlines to achieve such excellent results is inseparable from its unique low-cost management approach, which reflects the unique strategic vision and management skills of its founder Wang Zhenghua.
In 1982, 38-year-old Wang Zhenghua gave up his identity as a civil servant and officially began to start a business.
After several years of exploration and hard work, in 1987, the annual turnover of Spring and Autumn Cultural Tourism managed by Wang Zhenghua reached 1 million yuan, becoming one of the most profitable travel agencies in China at that time.
As Wang Zhenghua's travel territory became larger and larger, he found a problem, that is, the long-distance travel market is difficult to expand, mainly due to the impact of high air ticket prices.
After all, in those days, flying was regarded as a high-end consumption, and it was a benefit that only high-ranking officials and nobles could enjoy.
It is precisely because of the market demand of the low-end consumer group in the aviation market, especially the travel demand combined with long-distance travel, that Wang Zhenghua had the idea of establishing his own airline.
In 2004, the Civil Aviation Administration of China opened the door for private capital to set up airlines, and with the efforts of Wang Zhenghua, Spring Airlines was established that year.
In 2005, 61-year-old Wang Zhenghua ushered in Spring Airlines' first aircraft, and put forward the concept of Spring Airlines to make every Chinese afford to fly, and Spring Airlines opened the road of low-cost development.
With its low airfares, Spring Airlines began to gradually seize the market, grew rapidly, and successfully went public in 2012, starting a new round of rapid expansion.
Today, Spring Airlines' market value has reached 52.7 billion yuan, creating a myth of domestic low-cost airlines, and its reputation is resounding throughout the country.
In 2017, Wang Zhenghua resigned as chairman of Spring Airlines, and his eldest son Wang Yu officially took over.
In February this year, the 80-year-old Wang Zhenghua officially donated the equity of Spring International Travel Service to his eldest son Wang Yu and second son Wang Wei, which also means that Wang Zhenghua officially passed on the 80 years of laying down the country to his children, and Spring Airlines also ushered in a new helmsman.
After Wang Yu took over Spring Airlines, he inherited his father's low-cost operation concept, and required Spring Airlines to achieve unabated cost control and continue the road of cost reduction.
Spring Airlines' business performance in the first half of 2024 is gratifying, which also shows that Wang Yu's approach has withstood the test of the market, and Spring Airlines' development has reached a new level.
Spring Airlines' low-cost operation is unique and impeccable in China, and we hope that Spring Airlines can develop into a century-old national enterprise, not only allowing every Chinese to board the plane, but also allowing more foreigners to board the plane of Chinese Airlines.