China Eastern sees profits surge
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China Eastern Airlines has reported a surge in net profits in the first half of 2009. According to a Xinhua report, China Eastern posted net gains of CNY1.17 billion (US$172.6 million), by Chinese accounting standards. The Shanghai-based carrier said its profit in the first half of this year was over CNY1.1 billion more than the same period year ago, boosted by revaluation gains from fuel hedging. According to international accounting standards however, the company’s net profit totalled only CNY984.7 million in the first half of this year. No comparative figure for last year was reported.
Revenue of the company in the first half however, fell 15.8% to CNY17.5 billion, as weakened demand following the global financial crisis continued to impact the carrier. It also said it received CNY1.24 billion in non-operating income, mainly government subsidies. This total was CNY739 million more than a year ago.
China Eastern Airlines is currently finalising a plan to merge with local rival, Shanghai Airlines.
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