China’s big three reports 3Q profits up on market demand growth

China’s big three carriers—Air China, China Eastern Airlines and China Southern Airlines—have all reported third-quarter profit increases as a result of continuous market demand growth.

Beijing-based Air China earned a third-quarter net income of CNY5 billion ($752 million), up 31.3% over a net profit of CNY3.8 billion in the year-ago quarter. Operating revenue rose 9.1% year-over-year (YOY) to CNY34.8 billion against a 9.1% YOY increase in operating expenses of CNY25 billion.

For the first nine months of 2017, Air China’s net profit also increased 14.6% YOY to CNY8.3 billion. Operating revenue during the period also grew 8.8% YOY to CNY93 billion while operating costs increased 13.4% to CNY72.9 billion.

Shanghai-based China Eastern posted a third-quarter net profit of CNY3.6 billion, up 3.2% over a net income of CNY3.5 billion in the year-ago quarter. Operating revenue rose 1.3% YOY to CNY29.5 billion against a 3.9% increase in operating expenses to CNY23 billion.

For the first nine months of 2017, China Eastern posted a net income of CNY8 billion, up 18% YOY. Operating revenue for the period rose 2.8% YOY to CNY77.5 billion while expenses increased 9.6% to CNY65.6 billion.

Guangzhou-based China Southern reported a third-quarter net profit of CNY4.3 billion, up 30% over a net income of CNY3.3 billion in the year-ago quarter. Operating revenue grew 9.8% YOY to CNY35.8 billion against a 10.2% increase in operating expenses to CNY28.1 billion.

For the first nine months of 2017, China Southern’s net income rose 9.5% YOY to CNY7.1 billion. Operating revenue for the period increased 11% YOY to CNY96.1 billion while operating expenses grew 16.2% YOY to CNY81 billion.

Traffic figures were not released.

(Katie Cantle - ATWOnline News)