Air China reports mixed Q3 results

Air China has announced its financial results for the third quarter of 2014 reporting operating revenue up 6.7 per cent year-on-year to RMB29.79 billion (US$4.87 billion).


Air China reports mixed Q3 results


Air China has announced its financial results for the third quarter of 2014 reporting operating revenue up 6.7 per cent year-on-year to RMB29.79 billion (US$4.87 billion). The company also recorded operating profit of RMB3.71 billion, a decline of 7.6 per cent y-o-y resulting in the company’s margin standing at 12.5 per cent.

Cargo capacity as measured by AFTK, increased by 15.5 per cent versus a year earlier to 2.5 billion. Cargo traffic as measured by RFTK rose by 12.1 per cent to 1.47 billion. The cargo and mail load factor was 57.9 per cent, a decrease of 1.78 percentage points year-on-year.

During the third quarter of 2014, the economy of China remained stable and the demand of the domestic aviation market steadily increased. Total profit and net profit during the period declined due to the exchange loss arising from the depreciation of RMB. After deducting foreign exchange losses operating profit increased by RMB410 million compared to the corresponding period of 2013.

This was mainly attributable to the combined effects of improved operating efficiency as well as lower fuel price as compared to the previous year.