Air China is expecting to post its first annual loss in eight years due to slumping demand and bad bets on fuel prices, state media reported. The company said in a statement filed with the Hong Kong stock exchange on Friday that it lost US$994.5 million on fuel hedging in 2008. Chinese carriers are banned from hedging purchases on fuel used for domestic flights, which in the past made Air China less vulnerable than its competitors to rising fuel prices. But jet-fuel prices have fallen more than … [Read more...] about Air China expects first loss in 8 years
Air China
Air China moves to fully acquire cargo division
China's largest carrier, Air China is to purchase the remaining stake in Air China Cargo Co. Ltd, from Capital Airports Holding Company, which holds a 24 per cent share of Air China Cargo, for an estimated 798 million yuan. Air China currently holds a 76 per cent stake in the cargo subsidiary. Air China Cargo was co-established in March 2003 by Air China, Citic Pacific, and Capital Airports Holding Company. Air China originally held 51 per cent stake of Air China Cargo and later bought the 25 … [Read more...] about Air China moves to fully acquire cargo division
Cathay loses US$980 million on hedging gamble
Cathay Pacific Airways has joined many of its counterparts in reporting huge fuel-hedging losses, plunging the previously profitable Asian carrier into an expected record loss for last year, the South China Morning Post reported. The loss on Cathay's fuel-hedging contracts as of the end of last month amounted to around US$980.1 million, deepening from the $361.1 million loss estimated to have been incurred at the end of October, according to the third profit warning filed by the airline in … [Read more...] about Cathay loses US$980 million on hedging gamble
China: Air China sees volumes slide in August
Air China says it carried 68,000 tonnes of cargo in August, down 4.1 per cent on August 2007. Its eight month rolling comparison for the year was 552,384 tonnes, little changed from the same period of 2007. The cargo load factor for August was 56.2 per cent, down 0.5 percentage points, while the passenger load factor for Jan-August was 58.1 percent, up 4.7 percentage points. … [Read more...] about China: Air China sees volumes slide in August
Air China and China Southern Airlines
Air China and China Southern Airlines both endured double-digit yearover- year traffic declines in August, and while some of the drop can be attributed to heightened security related to the Beijing Olympics, slowing domestic economic growth likely means a poor full-year 2008 traffic and financialperformance for Chinese carriers. … [Read more...] about Air China and China Southern Airlines
