China Eastern sees profit to rise 50%
By Winny Wang |
July 17, 2010, Saturday
|
Print Edition
Print Edition
CHINA Eastern Airlines expects a 50 percent rise in net income in the first half of this year propelled by a recovery in the aviation market and acquisition of its smaller local rival Shanghai Airlines.
The country's second-largest carrier is estimated to earn more than 1.76 billion yuan (US$260 million) from January to June, against 1.17 billion yuan a year earlier, it said in a preliminary report to the Shanghai Stock Exchange yesterday.
China Eastern attributed the higher income to robust air demand, booming passenger volume generated by the Shanghai World Expo and reduced costs by acquiring Shanghai Airlines.
Shanghai-China Eastern flew 30 million passengers in the first six months, a jump of 44.89 percent from a year earlier. It also carried 718,910 tons of cargo, up 73.93 percent.
"The figure is similar to our expectations, and the carrier's aviation business improved significantly in the second quarter of this year thanks to reduced competition and robust demand from the World Expo," said Li Lifang, an analyst at Sinolink Securities Co.
"China Eastern's takeover of Shanghai Airlines eased cut-throat competition in the Shanghai market and will help boost the carrier's profitability," Li said.
He also noted that the carrier's third-quarter profit is expected to reach 3 billion yuan as more travellers will visit Shanghai World Expo during the summer.
China Eastern acquired Shanghai Airlines in a share swap to raise its share to over 50 percent in the city.
The country's second-largest carrier is estimated to earn more than 1.76 billion yuan (US$260 million) from January to June, against 1.17 billion yuan a year earlier, it said in a preliminary report to the Shanghai Stock Exchange yesterday.
China Eastern attributed the higher income to robust air demand, booming passenger volume generated by the Shanghai World Expo and reduced costs by acquiring Shanghai Airlines.
Shanghai-China Eastern flew 30 million passengers in the first six months, a jump of 44.89 percent from a year earlier. It also carried 718,910 tons of cargo, up 73.93 percent.
"The figure is similar to our expectations, and the carrier's aviation business improved significantly in the second quarter of this year thanks to reduced competition and robust demand from the World Expo," said Li Lifang, an analyst at Sinolink Securities Co.
"China Eastern's takeover of Shanghai Airlines eased cut-throat competition in the Shanghai market and will help boost the carrier's profitability," Li said.
He also noted that the carrier's third-quarter profit is expected to reach 3 billion yuan as more travellers will visit Shanghai World Expo during the summer.
China Eastern acquired Shanghai Airlines in a share swap to raise its share to over 50 percent in the city.
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