Li Jun, deputy general manager of China Eastern Airlines has admitted that soaring fuel costs will “definitely weigh on our costs” even though it “will continue to be profitable this year” but profits will be lower, he said.
Air China chairman Kong Dong was more positive: “Oil prices were not cheap in 2009 and 2010, and our earnings have surged. That says a lot about our effort to cut costs and prioritize our network and improve our service,” he said. ”Things will be under control as long as the travel flow keeps coming.”
All three major Chinese carriers, including China Eastern, Air China and China Southern, have projected strong earnings for 2010 due to the ramp up in demand for air travel in the region as well as upsides from merger deals.
Air China’s net income for the year rose 200% after buying control of Shenzhen Airlines, while China Eastern’s 2010 profits grew tenfold in 2009 after it took over Shanghai Airlines.