Higher fuel prices drive down Air China, China Southern 1H profits
Air China and China Southern Airlines were impacted by higher fuel prices in the 2017 first half as the two carriers reported year-over-year 6-month net profit decreases of 3.8% and 11.6%, respectively, to CNY3.3b (US$486m) and CNY2.8b. Air China’s 1H operating revenue rose 8.7% YOY to CNY58.2b while operating expenses rose 15.8% to CNY47.7b. Fuel costs jumped 40.1% YOY to CNY13.6b during the period. China Southern’s 1H operating revenue grew 11.5% YOY to CNY60.3b, while operating expenses increased 20% to CNY53b. Fuel costs rose 50.1% to CNY15.4b. Air China’s passenger boardings were up 5% YOY to 49.2m with an average load factor of 81%, up 1.2 points over the year-ago period. Passenger capacity rose 5% YOY to 119b ASKs while traffic rose 6.5% YOY to 96.4b RPKs. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-09-04/star/higher-fuel-prices-drive-down-air-china-china-southern-1h-profits
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Higher fuel prices drive down Air China, China Southern 1H profits
Air China and China Southern Airlines were impacted by higher fuel prices in the 2017 first half as the two carriers reported year-over-year 6-month net profit decreases of 3.8% and 11.6%, respectively, to CNY3.3b (US$486m) and CNY2.8b. Air China’s 1H operating revenue rose 8.7% YOY to CNY58.2b while operating expenses rose 15.8% to CNY47.7b. Fuel costs jumped 40.1% YOY to CNY13.6b during the period. China Southern’s 1H operating revenue grew 11.5% YOY to CNY60.3b, while operating expenses increased 20% to CNY53b. Fuel costs rose 50.1% to CNY15.4b. Air China’s passenger boardings were up 5% YOY to 49.2m with an average load factor of 81%, up 1.2 points over the year-ago period. Passenger capacity rose 5% YOY to 119b ASKs while traffic rose 6.5% YOY to 96.4b RPKs. <br/>
