Hainan Airlines posts H1 results after weak currency hits profits

admin
By admin August 28, 2014 15:25

Hainan Airlines posts H1 results after weak currency hits profits

Hainan Airlines has posted a 69.78% drop in first-half net profit to CNY148.2 million, as a weakening Chinese yuan impacted earnings at all the country’s airlines.

Core revenue grew 2.92% to CNY15.47 bn, while profit attributable to shareholders fell 25.35% to CNY482.8 million.

Hainan carried 169.2 million passengers in the first half of the year, 15.62% more than in the same period last year. Passenger load factor grew 0.16% to 86.23%.

Capacity as measured in available seat kilometres rose 15.86% as the airline introduced 10 new aircraft.

Costs jumped 73% as it recorded a net exchange translation loss of CNY337 million, compared with a net exchange translation gain of CNY330 million in the same period last year.

The weakening of the yuan has hit Chinese airlines with large dollar-based debts, with most of the debt attributed to aircraft purchases and leases.

admin
By admin August 28, 2014 15:25