China airlines’ profits decline

July 11th, 2012 - 7:27 pm ICT by IANS  

Beijing, July 11 (IANS) Profits of major Chinese airline companies have declined in the first half of 2012, it was reported here Wednesday.

China Southern Airlines Co. Ltd. said its net profits attributable to its equity holders will fall by over 50 percent in the first half, compared with the same period last year.

The carrier attributed the decline to the slowdown of China’s economic growth, China Daily reported.

The substantial increase in the price of jet fuel and exchange losses due to the depreciation of the yuan against US dollars impacted the industry, the company said.

The three largest Chinese airlines suffered a decline in their profits in the first quarter of 2012, according to their finance reports.

China Southern’s profit fell by 74.19 percent, China Eastern Airlines Co. Ltd’s dropped by 73.68 percent and Air China Ltd. had an 85.7 percent decline compared with the first quarter of 2011.

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