Air China Profits Plunge on Weaker Yuan
Air China announced financial results for the first quarter of 2014.
The Beijing-based airline reported a profit of 93 million Chinese yuan ($14.9 million), a decrease of 62.7% from 249 million yuan in the first quarter of 2013.
The airline said that the significant decrease in profit is due mainly to net exchange loss caused by the depreciation of the yuan. Profit after deducting exchange losses showed an increase of 515 million yuan year-over-year.
Revenue for the first quarter showed a year-over-year increase of 7.48%, to 24.419 billion Yuan from 22.719 billion yuan in 2013.
Passenger traffic for the quarter increased by 12.04% year-over-year, to 37.563 billion revenue passenger miles, or RPMs, while the airline’s capacity increased 11.92% to 45.944 billion available seat kilometers, or ASKs.
The carrier’s load factor in Q1 also showed an increase of 0.08 percentage points, up to 81.76%, from 81.68% in the first quarter of last year.
(Photo: Accura Media Group)