CHINA SOUTHERN, the country's biggest air carrier, posted an almost 18-fold profit increase to CNY5.8 billion (US$883 million) in 2010, drawn on revenues of CNY76.5 billion, an increase of 40 per cent over 2009.
Passenger volume climbed 15 per cent last year as worldwide travel took off again after the global downturn receded. Rising wages in China also boosted domestic demand, reported Bloomberg.
The International Air Transport Association (IATA) expects China to lead the world with a 32 per cent increase in passenger traffic over the next five years.
China Southern, which flew 76.5 million passengers last year, also benefited from the yuan's 3.4 per cent appreciation against the dollar last year, thus shrinking its dollar debt owned to Boeing and Airbus.
Air China, the world's largest carrier by market value, and China Eastern will probably also post rising profits this week, said Bloomberg.
China Southern's 2011 profit may fall to CNY4.5 billion, according to the average of 15 analyst estimate compiled by Bloomberg. Jet kerosene prices have risen 27 per cent this year in Singapore to $132.50 a barrel, said the report.
(Source:http://www.schednet.com)
