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Air China says first-half net profit up by three-fold on strong demand, higher yuan

Air China says first-half net profit up by three-fold on strong demand, higher yuan

Chinese carrier Air China reported Wednesday that its first half net profit more than tripled from a year earlier, by strong passenger demand and the rise in the value of the Chinese yuan.
Net profit for the six months ending June 30 surged to 1.57 billion yuan (US$207 million;euro151 million), or 3.4 times earnings of 458 million yuan in the same period a year earlier, according to the Beijing-based Air China, one of China's three main state-owned airlines.
First-half revenues rose 17 percent to 23.3 billion yuan (US$3 billion;euro2.2 billion) from 19.9 billion yuan in the first half of 2006.
The airline attributed its performance to strong demand from business travelers amid the booming Chinese economy and the contribution of profitable Hong Kong-based carrier Cathay Pacific Airways., which holds a 17.5 percent stake in Air China.
The rise in the yuan's value against the U.S. dollar helped by reducing the size of the airline's dollar-denominated debt.
Passenger traffic rose 14.4 percent to 33.3 million, with both domestic and international traffic showing double-digit growth.


Updated : 2020-12-03 21:29 GMT+08:00