Air China reports record profit

Air China and Air Macauparent Air China Ltd. earneda 2006 net profit of CNY3.19billion (US$411.8 million),up 86.71 percent over theprior year, on a 17.4 percentlift in operating revenue toCNY44.9 billion. Chairman Li Jiaxiang saidthe result was in part dueto the company’s A-sharelisting in Shanghai and therestructuring of its crossshareholding with CathayPacific Airways. "The share listing […]


Air China and Air Macauparent Air China Ltd. earneda 2006 net profit of CNY3.19billion (US$411.8 million),up 86.71 percent over theprior year, on a 17.4 percentlift in operating revenue toCNY44.9 billion.

Chairman Li Jiaxiang saidthe result was in part dueto the company’s A-sharelisting in Shanghai and therestructuring of its crossshareholding with CathayPacific Airways.

"The share listing helped stabilise our capital structureand provides us theresources to continue ourfleet expansion, while ourcross shareholding withCathay offers us valuableknow-how in flight service,"Li said. He also noted thatthe drop in fuel prices duringthe second half of theyear brought some relief.

Total operating expensesincreased 22.5 percent toCNY42.4 billion, with jetfuel accounting for 37 percent.Cargo traffic grew19 percent to 3.29 billionRTKs. Passenger load factorimproved 1.9 points to75.9%.

With four 747-400 freightersadded to its fleet lastyear, Air China’s cargo capacityjumped 25.3 percentin both January and February,although load factordipped to 48.9 percent.Cargo accounted for 10percent of Air China’s totalrevenue in 2005.