Air China profits double in 2009
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Air China more than doubled its profit in the first half of 2009, as fuel-hedging gains and strong domestic demand offset declining international travel, Bloomberg reported. The Beijing-based carrier’s net income surged to CNY2.88 billion (US$422 million) from CNY1.23 billion in the first half of 2008, the carrier was reported saying in a statement to the Hong Kong stock exchange statement late yesterday. Sales fell 9.6% to CNY23.1 billion.
A CNY1.5 billion on-paper profit from fuel hedging helped Air China weather a 10% drop in international passenger numbers. The carrier, posted a CNY2.8 billion operating profit, compared with a CNY837 million loss a year earlier. Fuel costs fell to CNY6.1 billion from CNY10.6 billion, the report added.
Air China and its Air Macau unit saw domestic passenger numbers rise 18% to 15.8 million. Total passenger numbers rose 11% to 19.5 million, including 2.6 million on international routes and 1.1 million on Hong Kong, Taiwan and Macau flights. A year earlier, domestic travel was hit by a series of problems, including severe snowstorms, the Sichuan earthquake, Tibet riots, and tighter security in the build-up to the Beijing Olympics.
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