Air China (00753.HK) saw its earnings last year hit the lowest level since 2009. Now, it appears that 2013 will be another bad year for the mainland carrier, going by its performance in the first nine months.
Revenue for the January-September period was down 3 percent while net profit shrank 4 percent, figures released Tuesday showed.
The company noted vibrant demand driven by outbound travelers. However, with the industry having expanded at an unchecked pace, a surge in capacity has offset the benefits of the pickup in aviation demand. Media reports have often pointed to price wars in the industry.
Cargo traffic, the soft spot in recent years, continued to show weak performance in terms of revenue freight tonne kilometers and load factor.
“The aviation industry faces many challenges in the months ahead,” the carrier’s chairman Wang Changshun noted, offering no comfort for investors.
Air China shares were down 2 percent in morning trading Wednesday, taking the counter’s year to date loss to about 20 percent.
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