Air China profit slumps 77% on higher fuel costs
Updated: 2012-08-30 14:02
Air China Ltd, the nation's biggest international carrier, said first-half profit slumped 77 percent because of slowing travel demand, higher fuel costs, and a loss from its stake in Cathay Pacific Airways Ltd.
Net income in the six months ended in June fell to 944.5 million ($149 million), under international accounting standards, from 4.06 billion yuan a year earlier, the Beijing-based carrier said in a filing to the Hong Kong Stock Exchange on Tuesday.
That compares with the 665 million-yuan median profit estimate of three analysts surveyed by Bloomberg News. Sales rose 5.4 percent to 47.6 billion yuan.
The carrier filled a lower percentage of seats in the first half than a year earlier as China's cooling growth and the eurozone debt crisis sapped travel demand. Air China also booked losses from investment, mainly on its 30 percent stake in Cathay, and the yuan's depreciation against the dollar.