Research On The Impact Of RMB Exchange Rate Fluctuations On Aviation Enterprise Risk

With the growth of Chinese economy and the increasing degree of internationalization,foreign trades are more and more important.So many enterprises have been affected by the exchange rate more than before.Taking into account that Chinese foreign exchange supply and demand situation is relatively good,so many experts believe that the RMB will remain stable.However,RMB devaluated in the past two years,making many enterprises face the pressure of devaluation.Among them,airline industry is one of the industries which have been affected seriously.This paper will analyze the impact of RMB exchange rate from two aspects:financial risk and operational risk and provide some suggestions.Based on this foundation,this paper first analyzes the impact of exchange rate fluctuations on Chinese airline industry,concluding that the impact of exchange rate fluctuations on the airline industry is relatively large.Then take China Southern Airlines as a case study to analyze the financial risk and operational risk.In the aspect of financial risk analysis,quality analysis,quantities analysis,linear regression model are be used in this paper,concluding that the RMB exchange rate fluctuations will make impact on foreign currency debt and EBIT of China Southern Airlines,which affect the enterprise’s financial risk.In terms of business risk,we also use the method of quality analysis and quantities model to analyze the impact of exchange rate fluctuations on the fixed cost and EBIT which will affect the business risk.Based on the above analysis results,we put forward some relevant suggestions.This paper point out that company are more likely to be affected by external factors.With the development of international business because of the special capital structure and business model,the influence of RMB exchange rate fluctuation on airline enterprise risk has to be paid attention.So in this paper,we start from this point of airline enterprises,the relevant conclusions and suggestions make this paper has a certain practical significance,hoping to provide some methods to control the risk of Chinese airline industry company due to the exchange rate.