Friday, August 10, 2012

Chinese carriers report July 2012 profit

Xiamen 737-85C (38392/4121) B-5655 is captured departing Boeing Field (BFI/KBFI) on August 10, 2012 sporting the carriers new livery.
(Photo by Joe G. Walker) 

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.

(Katie Cantle - ATWOnline News)

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