Air China: 12H1 Net Profit Expected to Drop More Than 50% YoY

Source: Company Disclosure, ChinaScope Financial (Data)

+       Air China Ltd. (601111.SH) publicized a preview of its 12H1 performance on July 17, showing that the company’s net profit attributable to shareholders is expected to fall more than 50% year-on-year in the first half of 2012.

+       The sharp decrease in net profit is mainly attributable to slower growth of domestic demand, sluggish international demand and higher fuel prices. Furthermore, the company’s exchange earnings also declined significantly.

Slow down in RPK growth and higher fuel prices have caused the downward trend in Air China’s revenue growth.

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