Air China, the world's largest carrier by market value, posted a 147 per cent gain in first-quarter profit on rising passenger numbers and a stronger yuan.
Net income rose to 1.04 billion yuan (HK$1.16 billion), or nine fen per share, the Beijing-based carrier said in a statement to the Shanghai Stock Exchange yesterday. Sales rose to 12.8 billion yuan. Air China, China Southern Airlines and other mainland carriers flew more travellers in the period as economic growth of 10.6 per cent boosted demand for business and leisure flights. The yuan also appreciated 4 per cent in the first quarter, cutting the value of the airlines' dollar-denominated debts.
Air China will continue to lead the industry this year, said Guotai Junan Securities analyst Martin Wang. The company's passenger load factor has reached a record and it will continue rising. The carrier filled 77.1 per cent of available seats in the first three months. China Southern, the nation's biggest carrier, had a passenger load factor of 74 per cent, while third-ranked China Eastern Airlines Corp managed 71.8%.
Air China flew 8.3 million passengers in the period, 5.7 per cent more than a year earlier. Cargo volume rose 1.3 per cent to 219,997 tonnes. The airline would keep its position as the nation's most profitable because of its operating efficiencies, said Mr Wang. Full-year profit might climb 29 per cent to 5.4 billion yuan. A strengthening yuan has boosted earnings at mainland carriers. For the whole of last year, Air China made a currency gain of 2.03 billion yuan. The appreciating yuan helped China Southern record a first-quarter profit, compared with a loss in the year-earlier period. China Eastern has yet to announce its earnings results for the period. 
