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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, boosted 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.
Strong demand from business travelers amid the booming Chinese economy helped the airline overcome surging jet fuel prices. The company's performance was also enhanced by the contribution of Hong Kong-based carrier Cathay Pacific Airways, which holds a 17.5 percent stake in Air China.
"The company vigorously pursued various strategic cooperation opportunities and made significant progress in transforming its organization, expanding its hub and route networks, improving its customer service systems and further enhancing its brand," Air China's chairman, Li Jiaxiang, said in a statement.
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 : 2021-07-30 19:12 GMT+08:00