Air China H1 profits rise 242pc

AIR China has announced that profit attributable to equity holders for the six months ended June 30 amounted to CNY1.57 billion (US$207.82 million), up 242.5 per cent compared to the same period a year ago.

During the reporting period, profit from operations was CNY1.37 billion, up 53 per cent year on year and was driven by the rapid growth in revenue from air traffic.

The group's operating revenue for the period was CNY23.353 billion, an increase of 17.17 per cent compared to the same period in 2006. Higher demand in the mainland aviation market and the continuous expansion of capacity substantially contributed to the increase in revenue, the company said.

Cargo and mail carried rose by 18.4 per cent over the corresponding prior year period to 454,000 tonnes. Available freight tonne-kilometres grew by 24.2 per cent year on year to 3,390 million, while the freight and mail load factor decreased by 1.5 percentage points to 52.5 per cent.

Over the first half of 2007, the group's operating expenses amounted to CNY21.986 billion, an increase of CNY2.95 billion or 15.5 per cent compared to the same period last year. Rising jet fuel costs were the main reason for the increase in operating expenses. Higher aircraft maintenance, repair and overhaul expenses were attributed to the expansion of the carrier's fleet and an increase in maintenance work.