Hainan Airlines earnings increase 16%, buoyed by cheaper oil

Hainan Airlines posted a 16% jump in full-year profit as oil prices tumbled, though the gain was limited by foreign-exchange losses. Chen Feng’s airline had net income of CNY3b (US$460.6m) last year, compared with CNY2.6b in 2014, the company reported Thursday. The company recorded a foreign-exchange loss of CNY1.87b, 250 times bigger than a year earlier, following a surprise devaluation of the Chinese yuan in August. China unexpectedly devalued its currency in August, triggering volatility in foreign-exchange markets that has proved problematic for its airlines since aircraft purchases are denominated in dollars. China operators ordered more than $100b worth of aircraft from Boeing and Airbus last year. The yuan ended last year down 4.4% against the greenback, its biggest annual loss since 1994. <br/>