[photopress:air_china_1_2_3_4_5.jpg,full,alignright]Air China Ltd.’s net profit more than doubled in the first quarter from a year ago as the continued expansion of the Chinese economy lifted demand for air travel.
Net profit at China’s biggest international carrier rose 147% to RMB1.04 billion ($148.57 million) in January-March, the company told the Hong Kong Stock Exchange.
Sales grew 22% to RMB12.76 billion.
China’s gross domestic product rose 10.6% in the first three months, lifted by spending and investment. The government is priming the economy through the construction of roads, bridges, airports and other facilities needed for hosting this year’s Olympics.
The airline said the RMB’s 4% gain against the dollar during the quarter also lifted earnings.
Air China earlier said it carried 8.31 million passengers during the period, up 5.7% from a year ago.
The downside is that nearly half its costs go on fuel and there is no doubt this year we are going to see rises which will seriously affect profits.
Source: Trading Markets