HomeChina Stock News China Eastern H1 net up, favored by swelling market and RMB appreciation
China Eastern H1 net up, favored by swelling market and RMB appreciation
Written by Administrator
Thursday, 30 August 2007
BEIJING, Aug. 30 (InfoChina) – China Eastern Airlines Corp. (NYSE: CEA, HK: 0670, SH: 600115) posted a 58.2117 million yuan net profit in the first-half year period, a turnaround from 1.34 billion net loss in the year-earlier period, mainly boosted by the bullish Chinese aviation industry and RMB’s appreciation against the U.S. dollar, as shown by the state-controlled carrier.
The booming aviation industry brings China Eastern with all-sided growth in the first half of this year, with operating turnover going up 14.23 percent to 18.792 billion yuan, net profit jumping 104.36 percent to 58.2117 million yuan, passenger and fright transport rising by 9.10 percent to 3.539 billion ton-km and revenues from cargo transport moving up 14.23 percent to 18.792 billion yuan.
RMB appreciation also partly contributed to lessen debt and cost burdens for China Eastern.
But the Shanghai-based carrier has been fighting with the high oil and fuel prices that are eroding the company’s earnings.
Since the third quarter is the peak season for aviation industry, China Eastern predicted a year-on-year growth in Q3 profit.
As the plan to let in Singapore Airline as strategic partner is to be unveiled, China Eastern expects improvement in both passenger and cargo transportation. Another 16 aircrafts ordered from Airbus and Boeing will also be put into use in the second half of this year. (Edited by Lin Fanjing, )
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