HAINAN AIRLINES 2010 FULL YEAR RESULTS

Hainan Airlines net income for 2010 was CNY3.01 billion ($457 million) in 2010, from a net loss of CNY1.41 billion in 2009. Operating revenue was up 39.6% from 2009 to CNY21.71 billion while operating expenses also increased 16.9% to CNY15.49 billion. Passenger numbers for 2010 were up 6.9% to 18.63 million with average load factor at 81.7%, up 3.7% on 2009. Cargo traffic volume increased 19.7% to 282,500 tonnes. The carrier cited “strong market demand” particularly in the Chinese domestic market but warned that higher fuel costs will have a negative impact in 2011. The airline plans to take delivery