Business Round-Up
Chinese airlines income declines
May 1st 2012
China’s airlines reported losses for March of US$31.58 million despite increases in domestic and international passenger demand. Fuel costs increased by 16%, compared with the same month in 2011, earnings from international cargo declined 18.3% and domestic cargo traffic dropped 6.1%. Read More »
In its annual results for the year to December 31, flag carrier, Air China, announced a net profit of 7.08 billion yuan (US$1.12 billion), a decline of 41% over the previous year. Operating expenses outweighed revenue by more than 10%, mainly due to higher fuel prices.
Air China chairman, Wang Changshun, told media that 2012 would be tougher for the Beijing-based carrier because of the weak European and U.S. economies, domestic economic “adjustments”, industry cost increases and shortfalls in aviation infrastructure, limits on available airspace and slots at several major Mainland airports.
