Results posted by the three largest Chinese airlines – China Southern, Air China and China Eastern – for the first half of the year so a fall in earnings caused by a weak yuan and a slowing domestic economy.
China Southern’s net profit for the period fell more than 10% to 3.11 billion yuan ($467 billion), while Air China suffered a 17.5% fall in net profit to 3.46 billion yuan. China Eastern’s net profits declined by 9.3% to 3.23 billion yuan.
In the first half of 2016, the yuan depreciated by roughly 2% against the U.S. dollar, resulting in currency losses for the airlines.
China Southern passenger numbers dipped by 0.2% to 46.5 million in the first half year, while China Eastern reported a 4.8% drop in cargo and mail traffic volume, or a decrease of 16.4% in revenue from that sector, from a year earlier. Air China’s air cargo revenue dropped by 13.2% to 3.75 billion yuan.
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China Southern 787[/caption]
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Air China A330[/caption]
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China Eastern Airlines A320[/caption]