Chinese carriers show profit rebound for July
Published: August 10, 2012
Chinese carriers reported a collective net profit of CNY 6.4 billion ($ 1 billion) for July, up 7% compared with the net income of CNY 5.7 billion a year ago.
According to CAAC, passenger boardings increased 9.6% while cargo traffic volume dipped 3.4%.
Industry analysts credited lower domestic fuel prices and stronger market demand in the summer peak period as the main reasons for the profit hike.Beijing cut domestic jet fuel prices by 9% in July.
Ping An Securities aviation analyst Sun Chao noted domestic airlines will post a “better than expected” third-quarter performance.
High fuel prices and a slowdown of domestic market demand growth led to Chinese airlines reporting a collective 70.5% drop in net profit for the 2012 first half to CNY 3.78 billion ( ATW Daily News, July 16 ).