Air China 2015 profit jumps 77.5%
Air China's 2015 net profit jumped 77.5%, boosted by low fuel prices and robust leisure and business travel demand. Net profit was CNY6.8b, up from CNY3.8b a year earlier. Air China's fuel bill, which accounts for about 40% of its operating costs, fell 30.4% from the year-ago level. However, it booked a CNY5.2b (US$803m) foreign exchange loss, due to a weakening yuan. The after-tax profit of its cargo joint venture with Cathay Pacific Airways also dropped 87.7% from a year ago. The airline, like many Chinese peers, abandoned hedging to cover variations in fuel costs after being hit by wrong-way bets late in 2009. As a result, these carriers reap the full benefit when oil prices slide. The carrier's performance was also helped by the number of Chinese tourists going abroad, which topped 100m in 2014 for the first time. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-03-31/star/air-china-2015-profit-jumps-77-5
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Air China 2015 profit jumps 77.5%
Air China's 2015 net profit jumped 77.5%, boosted by low fuel prices and robust leisure and business travel demand. Net profit was CNY6.8b, up from CNY3.8b a year earlier. Air China's fuel bill, which accounts for about 40% of its operating costs, fell 30.4% from the year-ago level. However, it booked a CNY5.2b (US$803m) foreign exchange loss, due to a weakening yuan. The after-tax profit of its cargo joint venture with Cathay Pacific Airways also dropped 87.7% from a year ago. The airline, like many Chinese peers, abandoned hedging to cover variations in fuel costs after being hit by wrong-way bets late in 2009. As a result, these carriers reap the full benefit when oil prices slide. The carrier's performance was also helped by the number of Chinese tourists going abroad, which topped 100m in 2014 for the first time. <br/>
