Air China has posted a 55.4% drop in profit during the first six months of the year, citing a weaker Chinese yuan inflating overseas debt payments.
Net income declined to CNY510 million (US$82.9 million) in the six months ended in June from a year ago. The profit was in line with the 55-65% decline forecast by Air China on July 14th.
The yuan fell more than 2% against the dollar in the first half of this year, driving up costs for Air China, which has 70% of its debt denominated in USD at the end of 2013. Foreign exchange losses are expected to also weigh on the earnings of China Eastern Airlines and China Southern Airlines, which are expected to report first-half results later this week.
The airline carried 40.14 million passengers in the first six months, 7.2% more than a year earlier. Overall load factor was 80.6% compared with 81.1% a year ago.
- Editorial
- Airline
- Finance
- Leasing
- Technology
- Global
- All News
- Journals
- Events
- Awards
- e-News
- News Round-Up
- Airline Economics +
- Join Us