Asia's biggest carrier China Southern Airlines said higher jet fuel costs clipped its profit in the first half, while China Eastern earnings rose but only with the help of a one-off asset sale.

Net profit at state-owned China Southern dropped 11.1 percent year-on-year to 2.77 billion yuan ($420 million) in January-June, the carrier said late Tuesday in a statement to the Hong Kong stock exchange, where it is listed.

Its bottom line was hit by a more than 30 percent rise in operating expenses due to higher jet fuel costs, which offset revenue gains, the Guangzhou-based airline said.

Chinese carriers have benefitted from a boom in domestic and international air trips as China's middle class spends more on travel and leisure.

China Southern said its total operating revenue increased 11.7 percent in the first half, to 57.82 billion yuan.

China Southern's shares jumped 4.74 percent in Hong Kong Wednesday and were 5.81 percent higher in Shanghai, where the company also is listed.

China Eastern said in an exchange statement that its net profit for the first half jumped 34.4 percent to 4.34 billion yuan, but that was due to 1.9 billion yuan earned through the sale of a logistics subsidiary.

The Shanghai-based carrier's jet fuel expenses surged 45 percent.

"The international crude oil prices have increased significantly from a lower comparison base in the same period last year," China Eastern said, adding that intensifying industry competition resulted in a drop in revenue from its international routes.

However, strong demand boosted operating revenue nearly 10 percent.

China Eastern said in July it will buy a 10 percent stake in Air France-KLM for about 375 million euros (then $438 million) as it moves to expand its network in Europe.

Shares of China Eastern rose 3.78 percent in Hong Kong and up 2.43 percent in Shanghai.

Tweet

France and Germany announce new joint fighter program
Washington (UPI) Jul 14, 2017
France and Germnay announced they are planning to develop a new joint fighter plane following a French-German cabinet meeting Thrusday. French president Emmanuel Macron and German Chancellor Angela Merkel announced the plan at a news conference following the meeting. The two leaders also confirmed their countries committment to the "Euro-drone" program and other defense and economic pro ... read more

Related Links
Aerospace News at SpaceMart.com

Thanks for being here; We need your help. The Space Media Network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceMediaNetwork Contributor $5 Billed Once credit card or paypal		SpaceMediaNetwork Monthly Supporter $5 Billed Monthly paypal only