Chinese airlines profits hit by weak yuan

Juliette O'Neill
By Juliette O'Neill September 1, 2016 15:39

Chinese airlines profits hit by weak yuan

Results posted by the three largest Chinese airlines – China Southern, Air China and China Eastern – for the first half of the year so a fall in earnings caused by a weak yuan and a slowing domestic economy.

China Southern’s net profit for the period fell more than 10% to 3.11 billion yuan ($467 billion), while Air China suffered a 17.5% fall in net profit to 3.46 billion yuan. China Eastern’s net profits declined by 9.3% to 3.23 billion yuan.

In the first half of 2016, the yuan depreciated by roughly 2% against the U.S. dollar, resulting in currency losses for the airlines.

China Southern passenger numbers dipped by 0.2% to 46.5 million in the first half year, while China Eastern reported a 4.8% drop in cargo and mail traffic volume, or a decrease of 16.4% in revenue from that sector, from a year earlier. Air China’s air cargo revenue dropped by 13.2% to 3.75 billion yuan.

CHINA SOUTHERN 787

China Southern 787

Air China A330

Air China A330

China Eastern Airlines A320

China Eastern Airlines A320

Juliette O'Neill
By Juliette O'Neill September 1, 2016 15:39