China Southern first-half profits up fivefold

China Southern Airlines said its profit in the first half of 2008 rose fivefold on the back of continued renminbi appreciation, Bloomberg reported. Net income increased to US$123 million from US$24.4 million in the first six months of 2007, while operating revenue rose 9.1% to US$3.9 billion. The airline said that rising fuel prices and disruptions caused by the snowstorms and the May 12 Sichuan earthquake were offset by a rising currency, as fuel is purchased in US dollars. The airline, Asia’s largest by passenger volume, earlier unveiled plans to save US$189.3 million by reducing costs, including shaving the salaries of its executives by 10%. China Southern’s passenger volumes climbed 5.7% to 28 million in the first six months of the year.