20-Jan-2010 9:14 AM

Air China estimates a profit for 2009

Air China announced (19-Jan-2010) it expects to report a profit for 2009, a turnaround from a loss in the previous corresponding period. The carrier reported a loss of CNY9.15 billion (USD1.34 billion) in 2008 (-CNY0.77 or -USD0.11 per share). Key reasons behind the forecast profit, include:

  • Passenger traffic showed a steady rebound in 2009, particularly on domestic routes;
  • Lower average international crude oil prices in 2009. Other costs of the carrier were also under "effective control";
  • Increases in the fair value of fuel hedging contracts in 2009 contributed to the improvement in the carrier’s results;
  • Refund of the levies in relation to the CAAC Infrastructure Development Fund in the first half of 2009 also had positive effect. [more]

Want More News Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More