[photopress:air_china.jpg,full,alignright]Air China reports profits soared in the first half of the year due to the strengthening Chinese currency, investment gains and a booming travel market.
In a sense the headline and the figure is somewhat misleading. True, the carrier correctly said its net profit increased more than 2,000% to at least RMB900 million ($119 million for the first six months, up from the RMB45 million it reported under Chinese accounting standards in the first half of 2006).
By international accounting standards, the airline said it actually made RMB458 million in the first half of last year, with the difference arising from the fact that China’s accounting regime (which has since been revised) did not take into account the airline’s gains from hedging activity in the international jet fuel market.
Take it that mathematics are not my strong point but comparing apples with apples the increase was more of the order of 200%. Still very praiseworthy and a lot more believable.
Source: Financial Times