Air China to increase capital spending by 50% in 2010
Air China stated capital investment in 2010 will reach CNY15 billion (USD2.2 billion), a 50% year-on-year increase, as it predicts a full recovery in air traffic demand (Reuters/SCMP/Dow Jones, 26-Apr-2010). The carrier added that full-year fuel hedging gains could total CNY2 billion (USD293 million), with the carrier reporting CNY938 million (USD137 million) in fuel hedging gains in 1Q2010. Air China also stated its Air Macau subsidiary was able to report a “small” profit in 1Q2010 due to the carrier’s expanded network. Air Macau is expected to expand its network in Japan and Korea.