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China Southern Air 3Q profit falls on weak yuan

China Southern Air 3Q profit falls on weak yuan

China Southern Airlines says quarterly profit dropped by nearly a third because of currency fluctuations.
China's biggest airline by passenger numbers said late Sunday that profit fell by 29 percent to 2.2 billion yuan ($352 million) or 0.23 yuan per share (3.7 cents) in the third quarter.
The airline, which is based in the southern city of Guangzhou, said finance expenses in the quarter amounted to 518 million yuan as China's currency weakened against the U.S. dollar. The company posted a net gain of 764 million yuan in the same period last year because the yuan was strengthening then.
Chinese airlines are vulnerable to exchange rate fluctuations because they earn in yuan but have to pay for major costs like aircraft and jet fuel in U.S. dollars.


Updated : 2021-06-21 06:34 GMT+08:00