Chinese carriers report 17% profit drop in August
Published: September 21, 2012
Chinese carriers reported a collective net profit of CNY5.83 billion (920 million) in August, down 17% compared to a net income of CNY7 billion a year ago.
Revenue rose 7% to CNY39 billion. Operating expense figures were not released. Passenger boardings jumped 11.3% to 30.7 million with an average load factor of 84.4%, down 0.5 points year-over-year. Cargo traffic volume increased 0.1% to 455,600 tonnes.
Industry analysts cited foreign exchange losses for the profit drop. Chinese carriers reported CNY560 million in exchange losses due to yuan depreciation in August, compared to CNY1.48 billion in exchange gains in the year-ago period.
Analysts predict the yuan will continue to depreciate in the third quarter.