Air China operating profit increase 21% in 1H2016, expects continued 'intensified' competition in 2H

Air China revenue up 4% - financial highlights for six months ended 30-Jun-2016:

• Revenue: CNY53,984 million (USD8259 million), +4.0% year-on-year;
• • Passenger: CNY47,263 million (USD7231 million), +5.1%;
  • Cargo and mail: CNY3750 million (USD573.7 million), -13.2%;
• Operating costs: CNY45,987 million (USD7036 million), +1.6%;
• • Fuel: CNY9727 million (USD1488 million), -19.3%;
  • Labour: CNY9416 million (USD1441 million), +16.2%;
• Operating profit: CNY7997 million (USD1223 million), +20.5%;
• Net profit: CNY3794 million (USD580.5 million), -17.0%;
• Passenger yield: CNY0.5219 (USD 7.98 cents), -4.6%;
• Cargo yield: CNY1.1279 (USD 17.26 cents), -17.4%;
• Total assets: CNY225,387 million (USD34,483 million);
• Cash and cash equivalents: CNY7864 million (USD1203 million);
• Total liabilities: CNY155,258 million (USD23,754 million). [more - original PR - English/Chinese]

*Based on the average conversion rate at CNY1 = USD0.152997

Air China: "In the second half of 2016, the domestic air passenger market is expected to grow steadily with a continued high demand on outbound tourism. However, intensified industry competition and exchange rate fluctuations will remain. To adequately address the opportunities and challenges ahead, the Group will deepen reform with innovation, advance our strategic imperatives and transform our business model as we endeavour to achieve a greater performance." Source: Company statement, 30-Aug-2016.