AFP, Beijing :
Chinese carriers posted mixed results for 2018 but have warned of stronger headwinds in the coming year, which could continue to put a damper on profits.
China Southern Airlines, the country’s largest carrier by passenger numbers, reported a 3.71 percent decrease in net profit, posting 8.82 billion yuan ($1.31 billion).
This was mainly due to increased operating expenses from higher passenger volume and rising jet fuel prices, the company said in an earnings report filed to the Hong Kong Stock Exchange late Friday. It also warned that big fluctuations in the yuan this year, along with an ongoing increase in oil prices, are likely to weigh down profits. Net profit for the country’s second-largest airline by passengers, China Eastern Airlines, slumped 56.98 percent to 2.93 billion yuan in 2018, it reported Friday evening.
The airline put this down to an increase in operational costs, chiefly due to the 25 percent jump in jet fuel costs, resulting in additional spending of 6.72 billion yuan.
Chinese carriers posted mixed results for 2018 but have warned of stronger headwinds in the coming year, which could continue to put a damper on profits.
China Southern Airlines, the country’s largest carrier by passenger numbers, reported a 3.71 percent decrease in net profit, posting 8.82 billion yuan ($1.31 billion).
This was mainly due to increased operating expenses from higher passenger volume and rising jet fuel prices, the company said in an earnings report filed to the Hong Kong Stock Exchange late Friday. It also warned that big fluctuations in the yuan this year, along with an ongoing increase in oil prices, are likely to weigh down profits. Net profit for the country’s second-largest airline by passengers, China Eastern Airlines, slumped 56.98 percent to 2.93 billion yuan in 2018, it reported Friday evening.
The airline put this down to an increase in operational costs, chiefly due to the 25 percent jump in jet fuel costs, resulting in additional spending of 6.72 billion yuan.
