Date
18 December 2017

Falling air ticket prices drag down airline profits, paper says

Air China Ltd. (00753.HK, 601111.CN) and China Eastern Airlines Corp. Ltd. (00670.HK, 600115.CN) have reported sharp declines in their 2013 results amid a challenging operating environment in the sector, the National Business Daily reported Thursday. Air China saw its profit fall 32.41 percent to 3.32 billion yuan (US$534.17 million) from the previous year, while China Eastern Airlines posted a 25.12 percent drop in its earnings to 2.38 billion yuan, the report said. Significant declines in air ticket prices were the main reason for the airlines’ weak performance, although the average jet fuel cost was slightly lower than in 2012 and passenger bookings increased, an analyst was quoted as saying.

– Contact HKEJ at [email protected]

EL/AC/CG

 

 

EJI Weekly Newsletter

Please click here to unsubscribe