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]