Air China 1H net profit falls 21%

Air China said its first-half net profit fell 21% year-on-year to US$181.3 million, on the back of rising fuel costs and lower passenger demand, AP reported. Fuel costs rose to US$1.5 billion in the first six months of the year, up 32% from the same period a year earlier. The company said in a statement to the Hong Kong stock exchange that in the face of a global economic downturn, increased inflation, soaring fuel prices and natural disasters, "the global aviation industry, in particular, the Chinese aviation industry, experienced an unprecedented challenge." The company did post a US$278 million foreign exchange gain due to the appreciation of the Chinese currency, the renminbi, against the US dollar.