Most Chinese carriers report Q1 profit declines on rising fuel costs
Most Chinese carriers are reporting declines in Q1 net profits because of rising fuel expenses that collectively increased 40%-50%. However, China Eastern Airlines posted a Q1 net profit of CNY2.8b (US$406m), up 8.3% over net income of CNY2.6b in the year-ago quarter. Operating revenue for the Q1 rose 4.3% year-over-year (YOY) to CNY24.5b against a 16.2% increase in operating expenses to CNY21.5b. Air China reported a Q1 net income of CNY1.5b, down 39.8% over net income of CNY2.44b in the Q1 2016. Operating revenue rose 10% YOY to CNY29b against a 17% increase in operating expenses to CNY23.4b. Besides the higher fuel costs, the carrier also posted a CNY141.6m loss in equity investment, in contrast with the CNY330.7m profit in investment gains for the same period last year. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-05-02/sky/most-chinese-carriers-report-q1-profit-declines-on-rising-fuel-costs
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Most Chinese carriers report Q1 profit declines on rising fuel costs
Most Chinese carriers are reporting declines in Q1 net profits because of rising fuel expenses that collectively increased 40%-50%. However, China Eastern Airlines posted a Q1 net profit of CNY2.8b (US$406m), up 8.3% over net income of CNY2.6b in the year-ago quarter. Operating revenue for the Q1 rose 4.3% year-over-year (YOY) to CNY24.5b against a 16.2% increase in operating expenses to CNY21.5b. Air China reported a Q1 net income of CNY1.5b, down 39.8% over net income of CNY2.44b in the Q1 2016. Operating revenue rose 10% YOY to CNY29b against a 17% increase in operating expenses to CNY23.4b. Besides the higher fuel costs, the carrier also posted a CNY141.6m loss in equity investment, in contrast with the CNY330.7m profit in investment gains for the same period last year. <br/>
