Nothing but blue skies for Chinese airlines

Chinese airlines reported higher earnings in the first three quarters of this year compared with the same period last year thanks to a stronger yuan and a decrease in fuel expenses, the Shanghai Securities News said yesterday.

Airlines and airports earned a combined profit of 13.7 billion yuan (US$1.83 billion) in the period, said China's General Administration of Civil Aviation of China on its Website on Wednesday.

The average load factor between January and September was 76 percent.

Hainan Airlines Co, China's fourth-biggest carrier, said profit probably rose more than 90 percent in the first nine months of the year in its statement to the Shanghai Stock Exchange yesterday. Hainan's net income was 213 million yuan in the first nine months of 2006, it said. The airline is scheduled to report earnings on October 31.

China Southern Airlines Co, the country's biggest carrier by fleet size, said on Wednesday its third-quarter profit rose 49 percent to 1.88 billion yuan. The carrier, which flies about a third of air passengers in China, plans to expand its fleet 22 percent this year, adding 68 planes to the 309 it had at the end of 2006. The airline also announced an order for 10 Airbus SAS A330-200s late on Wednesday. These planes, alongside 20 A320s and 80 Boeing Co 737s that are awaiting delivery, will raise capacity 43 percent.

Air China, the nation's largest carrier, and China Eastern, the third-biggest, will report earnings next week.