HONG KONG (Indonesia Today) – Air China Limited, one of the largest airlines in the region, reported 3.82% revenue growth to RMB47.3 billion in the first half of 2012, mostly due to 2.7% decline from international routes.
Domestic routes, which contributed 67.83% of Air China’s revenues, grew 6.5% in the period. Unfortunately, operating expenses grew 7.64% to RMB44.7 billion in the period, mainly because of 9.61% growth in jet fuel costs to RMB17.8 billion (39.81% of total operating expenses).
Depreciation of Renminbi against US$ also resulted in exchange loss of RMB339 million in the period. As a result, Air China booked net profit of RMB944.5 million only, slashed by 77% from the corresponding period of 2011.