Chinese carriers report 70.5% drop in first-half profit
Published: July 17, 2012
Chinese carriers reported a collective profit of CNY3.78 billion ($ 598 million) in the first half, down 70.5% from a net income of CNY12.83 billion year-over-year. The industry attributes the drop to high fuel prices and slowdown of domestic market demand growth.
The Civil Aviation Administration of China (CAAC) did not reveal operating revenue and operating expenses.
Passenger boardings climbed 8.7% to 151 million and cargo traffic volume was 2.52 million tonnes. For the first six months, Chinese carriers introduced 89 aircraft and operated a collective fleet of 3,098.
In April, China Southern Airlines and China Eastern Airlines said their net income would dip more than 50% for the first half compared to the same period last year ( ATW Daily News, April 25 ). Both carriers cited slowdown of economic growth, higher fuel prices and yuan depreciation as the main reasons.
Looking ahead, industry analysts predict domestic airlines will post a “better than expected” third-quarter performance due to the stronger growth of market demand in the summer peak period, domestic consumption upgrade and lower fuel prices.
Earlier this month, the Chinese government cut domestic fuel prices 9% to CNY 6,724 per ton as international fuel prices keep falling ( ATW Daily News, July 3 ).