Chinese airlines report strong Q1 earnings

TD Guest Writer

Guest Writers are not employed, compensated or governed by TD, opinions and statements are from the specific writer directly

China Eastern and China Southern both returned to profit in Q1 2015
China Eastern and China Southern both returned to profit in Q1 2015 (photo by Tony V3112)

China’s “big three” airlines have made a strong start to 2015, with rising revenues and profits in the first quarter.

State-run Air China, China Eastern Airlines and China Southern Airlines all posted strong profits in Q1 2015, following  a difficult period in early 2014 when they were faced with foreign exchange losses.

Beijing-based Air China said it expects to post a Q1 net profit of CNY1.6-1.8 billion (US$262-294 million), while Shanghai’s China Eastern expects to generate first quarter income of CNY15-16 billion. As previously reported in Travel Daily, Guangzhou’s home carrier, China Southern, expects to report a first quarter net profit of CNY1.8-2bn.

China Eastern and China Southern both posted net losses in the first quarter of 2014.

The three carriers attributed the rising profits to falling fuel prices, increasing traffic and improved operational efficiency.

Klook.com

EXPERT OPINION

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