Air China (CA) and China Southern Airlines (CZ) saw their first-quarter income plunge due to high fuel prices and the slowing of yuan appreciation, according to carrier statements released by Shanghai Stock Exchange.
CA reported first-quarter net income of CNY239 million ($37.8 million), down 85.7% over CNY1.67 billion in the year-ago quarter. Operating revenue increased 7.7% to 22.9 billion against an increase of 16.9% in operating expenses to CNY22.71 billion.
CZ posted a first-quarter net income of CNY319 million, down 74.2% from CNY1.23 billion in the same quarter of last year. Operating revenue climbed 15.5% to CNY23.7 billion while operating expenses jumped 23.8% to CNY23.4 billion.
Neither carrier released first-quarter traffic figures.
Industry analysts also cited market demand slowdown as the main reason for the results.
China Eastern Airlines earlier this week predicted its first-quarter profit will drop by more than half from CNY1.01 billion reported in the year-ago quarter, citing similar reasons.
Article Source : ATW Daily News
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