Financial Round Up
Chinese carriers’ profit drops in August
September 30th 2014
The mainland’s carriers have reported a collective 7% profit drop for the month ended August 31. Net income stood at CNY5.9 billion ($960 million), compared to CNY6.34 billion in the same period a year earlier. Read More »
Operating income for August increased 7% to CNY42.5 billion, but operating expenses climbed 8% year-on-year.
The August numbers give reason for concern, given the significant profit drops and losses reported by China’s “Big Three” in first-half 2014 on a weaker yuan, high fuel price and dwindling premium traffic as the country accelerated its anti-graft campaign.
However, analyst reports indicate that China’s airlines are up for redemption as the yuan is showing signs of appreciation, fuel cost is decreasing and peak season being just around the corner starting with the national day holiday ‘Golden Week’ from September 29 to October 8, and Christmas.
