China Eastern 1H profit down 14.8% as costs increase
China Eastern posted an H1 net income of CNY2b ($28m), down 14.8% from CNY2.35b in the year-ago period, as increased fuel costs, fluctuating currency rates and global trade disputes increased expenses. Revenue was up 8% year-over-year (YOY) to CNY58.8b, but expenses rose 9.3% to CNY52.2b. On top of a 9% hike in fuel costs, airport landing fees rose 10.5% and employee costs were up 13.9% as the carrier’s network and staff grew. The Shanghai-based airline served 64m passengers during the period, an 8.6% YOY increase. Traffic grew 10.6% and capacity was up 10.4%, resulting in a load factor improvement of 0.2 points to 82.6%. Yield, excluding fuel surcharges, shrank 1.65%. The airline said revenue from partnerships increased 30% YOY and it will continue to strengthen its relationships with fellow SkyTeam alliance members Air France and KLM Royal Dutch Airlines on new routes, including those between Paris and Wuhan, Kunming and Qingdao. China Eastern also plans to expand codeshare routes with Qantas, Delta Air Lines and Lucky Air.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-09-06/sky/china-eastern-1h-profit-down-14-8-as-costs-increase
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China Eastern 1H profit down 14.8% as costs increase
China Eastern posted an H1 net income of CNY2b ($28m), down 14.8% from CNY2.35b in the year-ago period, as increased fuel costs, fluctuating currency rates and global trade disputes increased expenses. Revenue was up 8% year-over-year (YOY) to CNY58.8b, but expenses rose 9.3% to CNY52.2b. On top of a 9% hike in fuel costs, airport landing fees rose 10.5% and employee costs were up 13.9% as the carrier’s network and staff grew. The Shanghai-based airline served 64m passengers during the period, an 8.6% YOY increase. Traffic grew 10.6% and capacity was up 10.4%, resulting in a load factor improvement of 0.2 points to 82.6%. Yield, excluding fuel surcharges, shrank 1.65%. The airline said revenue from partnerships increased 30% YOY and it will continue to strengthen its relationships with fellow SkyTeam alliance members Air France and KLM Royal Dutch Airlines on new routes, including those between Paris and Wuhan, Kunming and Qingdao. China Eastern also plans to expand codeshare routes with Qantas, Delta Air Lines and Lucky Air.<br/>
