Air China forecasts profit
1 October 2002
Air China, China's international flag carrier, expects to post a profit of Yn300m-Yn500m this year, Business Weekly said. However, it did not specify whether this was net income, pre-tax profit or operating profit. Last year, the airline reported a net loss of Yn626m and in the first half of this year a net profit of Yn3.9m. The company attributed the turnaround to increased sales and cost cutting.
This optimism was in sharp contrast with the position of other mainland Chinese airlines. China Southern has warned that its second-half profit would be less than that of a year earlier, because government restrictions on discounted ticket sales would sap travel demand. China Eastern reported that its first-half profit fell by 64 per cent year-on-year because of a currency loss on its yen-denominated debt and ticket price discounts.