[photopress:passengers_on_China_airlines.jpg,full,alignright]2005 was a bad year for the airlines of China. They made serious losses. 2006 was a lot better for despite facing hefty increases in the cost of fuel they moved back into a profit.
National-flag carrier Air China made RMB3.2 billion net profit in 2006, up 87.7% from 2005.
Guangzhou-based China Southern Airlines states it earned a profit in 2006, the first for the carrier in eight years, but has not revealed the actual figure. There were losses of RMB1.79 billion in 2005.
China Eastern Airlines had a tough first nine months losing RMB970 million but in the last quarter made RMB492 million profit. As investment bank Morgan Stanley had previously forecast an RMB2 billion loss in 2006 this was a creditable performance.
Hainan Airlines, which reported RMB216 million losses in 2005 states that it will be able to report a profit for 2006. One estimate is that it will be between RMB213 million and RMB355 million.
There is an expectation that these airlines will stay profitable in 2007 as the renminbi continues to appreciate and international oil prices drop.