Market Report – Air China Triples Earnings

And in today’s market report we bring you news about Air China. The Mainland-based airline’s earnings jumped by more than 150 percent in the first half of the year.

China’s flagship carrier says fuel price caps helped offset an over 12 percent fall in sales.

The country’s top performing airline earned just over $420 million but did not provide guidance for the rest of the year, warning about continued uncertainties facing the industry.

Weak international air and cargo traffic and increased comptetition in the domestic market could hurt its bottom line.

And Air China lowered its full-year passenger and cargo targets even though passenger numbers were up 10 percent from a year earlier from a recovery in the domestic economy.

But cargo fell over 16 percent as the global economic downturn continued to weigh on foreign trade.

Earlier this month, Air China unveiled a deal to buy a further stake in Cathay Pacific, increasing its holding in the Hong Kong carrier to almost 30 percent.

And Closer ties with Cathay, which owns 18 percent of Air China, will help the Chinese carrier to further expand its international routes, while reports are the two may set up a cargo venture in Shanghai before the end of the year.

(NTDTV)