Air China sees profits sink 32 per cent

Beijing-based Air China said net profit sank 32 per cent last year to 3.26 billion yuan (US$524.6 million) as revenue per passenger slid and air cargo operations bled from soft demand and overcapacity in the industry.


Air China sees profits sink 32 per cent


Beijing-based Air China said net profit sank 32 per cent last year to 3.26 billion yuan (US$524.6 million) as revenue per passenger slid and air cargo operations bled from soft demand and overcapacity in the industry. Air China Cargo, in which Cathay Pacific Airways has a 49 per cent stake, continued to suffer from weak demand and overcapacity in the market, reporting losses of 349 million yuan for the period. Cargo yield dropped to 1.57 yuan from 1.69 yuan. The carrier uplifted 1.46 million tonnes of cargo, down 0.3 per cent on the year, with cargo yield dropping to 1.57 yuan from 1.69 yuan.

“The rapid development of high-speed railway and the evolution of low-cost carriers on the mainland will further intensify competition on domestic routes,” Air China said in a filing with the Shanghai Stock Exchange yesterday. Air China flew 77.6 million passengers last year, up 7.3 per cent year on year, compared with 3.92 per cent growth in 2012. But passenger revenue dropped two per cent to 87.47 billion yuan as sales from domestic flights slid five per cent to 59.7 billion yuan. Flights to Japan and South Korea saw a 15 per cent drop in revenue to 4.4 billion yuan.