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Air China sees first half profit more than double

Air China sees first half profit more than double

Air China Ltd., one of China's three major state-owned carriers, said Wednesday that its first-half profit more than doubled from a year earlier as lower fuel costs and fuel hedging helped make up for weaker demand on international routes.
The Beijing-based airline said its January-June profit was 2.88 billion yuan ($422 million), compared with first-half profit in 2008 of 1.13 billion yuan ($165 million).
Fuel purchasing costs fell 42.5 percent from a year earlier thanks to the decline in international crude oil prices, the airline said. It also saw a gain of 1.45 billion yuan ($212 million) in the value of its fuel hedging contracts.
Air China reported a 9.3 billion yuan ($1.3 billion) loss for full-year 2008 due to surging fuel costs and wrong-way fuel hedging bets.
It is regarded as the strongest of China's airlines, but all have been battered by surging fuel costs and weak demand due to the global financial crisis.
The carrier's total turnover in the first half fell 9.6 percent from a year earlier to 23.1 billion yuan ($3.4 billion) amid weaker demand for international passenger travel and air cargo services. Traffic revenue fell 13 percent to 3.17 billion yuan ($464 million), it said.
The government has injected billions of yuan into the carriers and exempted them from a tax on fuel surcharges to help them through the crisis.
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On the Net:
http://www.airchina.com


Updated : 2020-12-05 11:08 GMT+08:00