China Eastern Airlines operating profit down 93% in 1H2013, expects demand to improve in 2H2013

China Eastern Airlines revenue up 4% - financial highlights for six months ended 30-Jun-2013:

• Revenue: CNY41,624 million (USD6667 million), +3.5% year-on-year;
• • Passenger: CNY34,665 million (USD5552 million), +3.3%;
  • Cargo: CNY3531 million (USD565.6 million), -11.8%;
• Total operating costs: CNY42,141 million (USD6749 million), +7.4%;
• • Fuel: CNY14,979 million (USD2399 million), +2.1%;
  • Labour: CNY4649 million, +6.0%;
• Operating profit: CNY134.8 million (USD21.6 million), -92.7%;
• Net profit: CNY621.9 million (USD99.6 million), -28.2%;
• Passenger numbers: 37.8 million, +9.2%;
• Passenger load factor: 79.3%, +0.2 ppt;
• Passenger yield: CNY0.60 (USD 9.6 cents), -7.7%;
• • Domestic: CNY0.61 (USD 9.8 cents), -6.2%;
  • International: CNY0.55 (USD 8.8 cents), -11.3%;
  • Regional: CNY0.86 (USD 13.8 cents), +4.9%;
• Cargo yield: CNY1.54 (USD 24.7 cents), -13.0%;
• • Domestic: CNY1.31 (USD 21.0 cents), -16.6%;
  • International: CNY1.52 (USD 24.3 cents), -12.6%;
  • Regional: CNY3.88 (USD 62.1 cents), -1.0%;
• Total assets: CNY133,759 million (USD21,423 million);
• Cash and cash equivalents: CNY3672 million (USD588.2 million);
• Total liabilities: CNY107,744 million (USD17,256 million). [more - original PR]

*Based on the average conversion rate at USD1 = CNY6.2437

The carrier also reported (30-Aug-2013) the group's accumulated losses as of 30-Jun-2013 were around CNY4350 million (USD696.7 million), with its current liabilities exceeding its current assets by around CNY33,560 million (USD5375 million).

China Eastern Airlines: "In the second half of 2013, overall demand in the aviation market is expected to improve as compared to the first half of the year. However, the Group is expected to continue experiencing adverse conditions, including: slowdown of macroeconomic growth; decrease in business passenger demand; continued passengers' preference for railway over airline transportation; and the expected lack of recovery of the Japan air routes." Source: Company statement, 30-Aug-2013.