Air China limited announces 2017 interim results
Air China Limited announced its interim results for the 6 months ended June 30. Profit before tax increased year-on-year by 2.67% to RMB 5.174 billion.
September 5, 2017
Air China Limited announced its interim results for the 6 months ended June 30, 2017.
In the first half of 2017, the global trade recovery accelerated with emerging signs of growth pick-up in the international transport market. However, domestic market growth was relatively slow amid China’s economic transformation. Air China Cargo has proactively transformed its business model, and continuously strengthened the passenger and cargo business alignment to steadily improved the load factor of bellyhold. The route structure has been optimized with better margin contribution. By levering its trunk routes advantage through resource sharing, new business initiatives progressed with pleasing results. These various measures have proactively addressed the challenging operating environment for the cargo business to maintain profitability.
In the first half of 2017, the Available Freight Tonne Kilometers (AFTK) of Air China Cargo increased by 1.90% year-on-year to 6.408 billion, while the Revenue Freight Tonne Kilometers (RFTK) increased by 6.20% year-on-year to 3.531 billion. The cargo and mail load factor increased by 2.23ppts to 55.09%. The cargo yield was RMB1.27, a year-on-year Increase of 12.66%.
Looking ahead, China’s economic growth will continue its steady trajectory. The Company looks to capitalize on strategic opportunities while aware that industry competition, particularly in the international market will continue to intensify, the business environment will become more complex, and uncertainties from oil price fluctuations and geopolitical risks will persist. In addressing the opportunities and challenges ahead, the Company will remain focused on the goal of becoming a “mega network airline with international competitive edge” and on upholding our prudent management philosophy, deepening reform with innovation, and enhancing our competitive advantage in the international market so as to deliver better returns to shareholders and to society.