China's Juneyao Air to Add Up to 10 Aircraft, Eyes Russia Route

Juneyao Airlines Co. plans to add nine or 10 aircraft this year, as it considers opening routes to Thailand and Russia, company Chairman Wang Junjin said in an interview Sunday on the sidelines of the National People’s Congress in Beijing.

Wang also said the company’s January-February revenue increased by 40 percent year-on-year, as it looks forward to further benefits from lower oil prices and the opening of Shanghai Disneyland.

As China re-balances its economy toward consumer spending after its slowest annual growth rate in 25 years, the government is building scores of airports to facilitate growing air travel demand as the middle class expands. Passenger traffic rose 11.4 percent last year in China to 440 million trips, according to the aviation administration. It has projected 485 million passenger trips this year, with privately-run airlines such as Juneyao Air capturing much of this growth with its more efficient management.

Shares of Juneyao Air and low-cost carrier Spring Airlines Co. have surged since they listed in Shanghai last year. Juneyao has nearly tripled since its May 27 debut in Shanghai last year.

--With assistance from Shin Pei To contact Bloomberg News staff for this story: Clement Tan in Beijing at ctan297@bloomberg.net, Haixing Jin in Beijing at hjin45@bloomberg.net. To contact the editors responsible for this story: Anand Krishnamoorthy at anandk@bloomberg.net, Kevin Costelloe, Nicholas Larkin

By: Bloomberg News

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