Financial Round Up
Shandong Airlines first-half profit drops 43%
October 14th 2014
Shandong Airlines, a subsidiary of national carrier Air China, continues the trend of dwindling profits at the mainland carriers. Read More »
The Jinan-based carrier with a fleet of 73 aircraft reported a first-half net profit of CNY46.7 million ($7.6 million), down 43% from net income of CNY82.4 million in the same period a year earlier.
The carrier’s operating revenue rose 0.72% to CNY5.56 billion while operating expenses grew 5% to CNY4.93 billion year-on-year. Load factor was up 0.25 points to 78.5%.
Shandong Airlines – just like China’s “Big Three” – said the profit decline is due to exchange losses stemming from the sharp depreciation the Chinese yuan experienced against the U.S. dollar this past year.
Going forward, analysts predict the mainland carriers will see improvements in their financial performance in the third quarter due to yuan appreciation, lower fuel prices and the traditional peak season factor.
