Air China reports mixed Q3

Air China has announced its financial results for the third quarter of 2014. It reported that operating revenue rose 6.68% year-on-year to RMB29.79bn. The company also recorded operating profit of RMB3.71bn, a decline of 7.58% year-on-year. Accordingly the company’s margin stood at 12.47%.

During the third quarter of 2014, the economy of China remained stable and the demand of the domestic aviation market steadily increased. Total profit and net profit during the period declined due to the exchange loss arising from the depreciation of RMB. After deducting foreign exchange losses operating profit increased by RMB410m compared to the corresponding period of 2013. This was mainly attributable to the combined effects of improved operating efficiency as well as lower fuel price as compared to the previous year.

Cargo capacity as measured by Available Freight Tonne Kilometres (AFTK), increased by 15.53% year-on-year during the period to 2.53bn. Cargo traffic as measured by Revenue Freight Tonne Kilometres (RFTK) rose by 12.08% to 1.468bn. The cargo and mail load factor was 57.92%, a decrease of 1.78 percentage points year-on-year.


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