China Southern profit drops 10% as currency losses jump 10-fold
China Southern Airlines kicked off the country’s airline earnings by saying its profits were dented by currency losses while low-fare carrier Spring Airlines reported a 19% jump. Net income at China Southern fell 10% in the 6 months to June to CNY3.12b (US$467m) from CNY3.48b a year earlier, the airline said Monday. The foreign-exchange loss of CNY1.5b in the period, a 10-fold surge, compares with the CNY5.95b reported for all of 2015. China Southern also said it will consider hedging jet fuel, breaking from a past strategy that has provided a cushion against a surprise yuan devaluation in Aug 2015. Chinese carriers are projected to double their fleet in the next 20 years. China Southern expects the industry to maintain a passenger volume growth of as much as 10%. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-08-30/sky/china-southern-profit-drops-10-as-currency-losses-jump-10-fold
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China Southern profit drops 10% as currency losses jump 10-fold
China Southern Airlines kicked off the country’s airline earnings by saying its profits were dented by currency losses while low-fare carrier Spring Airlines reported a 19% jump. Net income at China Southern fell 10% in the 6 months to June to CNY3.12b (US$467m) from CNY3.48b a year earlier, the airline said Monday. The foreign-exchange loss of CNY1.5b in the period, a 10-fold surge, compares with the CNY5.95b reported for all of 2015. China Southern also said it will consider hedging jet fuel, breaking from a past strategy that has provided a cushion against a surprise yuan devaluation in Aug 2015. Chinese carriers are projected to double their fleet in the next 20 years. China Southern expects the industry to maintain a passenger volume growth of as much as 10%. <br/>
