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Air China Q3 net profit 3.3 bln yuan; revises down H1 profit


Beijing (XFNews-ASIA) - Air China Ltd (SHA 601111) said it booked a net profit of 3.30 bln yuan in the third quarter, with core business revenue and operating profit at 13.94 bln and 1.30 bln yuan respectively.

In an unaudited financial report filed with the Shanghai Stock Exchange, the company said its net profit for the nine months to September stood at 3.34 bln yuan, with the core business revenue and operating profit at 34.81 bln yuan 1.41 bln yuan respectively for the period.

No comparative figures were provided.

Air China said that as the July-September period is traditionally a season of brisk businesses, the company saw its core business profit increasing sharply over the three months to September of last year.

The company also said that it has revised its net profit for the first half of this year to 45.10 mln yuan from the previous figure of 147.28 mln.

It said it had to subtract 102.18 mln yuan from its previously disclosed six months net profit due to a new requirement by China's Ministry of Finance on companies' losses or gains derived from hedging transactions.

Correspondingly, the company's operating profit dropped to 117.44 mln yuan for the six months from the previously stated 228.28 mln, while core business profit fell to 2.69 bln yuan from 2.80 bln.

With the adjustment, Air China's net asset value per share fell to 2.06 yuan at end-June from the previous figure of 2.07 yuan while the net profit per share slid to 0.005 yuan from 0.016 yuan.

From January to September this year, Air China's revenue from passenger transportation business stood at 28.87 bln yuan, and that from cargo operations was 5.24 bln yuan.

The company said the completion of a restructuring deal involving it, Cathay Pacific Airways, China National Aviation Co Ltd, CITIC Pacific Ltd and Swire Pacific Ltd also contributed an one-off income of 1.97 bln yuan.

Air China expects its full-year 2006 net profit to rise over 50 pct from last year's level due to fast growth of China's domestic aviation market, the company's expanded investment in transportation capacity, flight routes and marketing, its cooperation with Cathay Pacific Airways, and the one-off income from the restructuring deal.

Air China, a Hong Kong- and London-listed company, went public in Shanghai in August this year.

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