16-Apr-2012 10:33 AM

Shandong Airlines forecasts up to 67% decline in 1Q2012 net profit

Shandong Airlines forecasts (14-Apr-2012) a 55% to 67% year-on-year decline in net profit to between CNY56 million (USD8.8 million) and CNY76 million (USD11.9 million) in 1Q2012 citing the following factors:

  • Economic slowdown: Domestic demand has seen declines from Feb-2012, putting pressure on revenue. The decline is also seen in load factors and yield;
  • Fuel price: 1Q2012 saw the average ex-factory price of domestic jet fuel increase 22%, resulting in a sharp increase in the carrier’s fuel cost. [more – original PR]