Shanghai: China Eastern Airlines Corp, the nation's second-largest carrier by passenger numbers, saw first-half profit increase 79 per cent as Shanghai's World Expo spurred travel and a stronger yuan cut the repatriated value of debts.
Net income rose to 1.76 billion yuan ($259 million) from 984.7 million yuan a year earlier, the Shanghai-based company said in a Hong Kong stock exchange statement yesterday, citing international accounting standards. Sales rose 94 per cent to 33.1 billion yuan.
More passengers
The carrier's first-half passenger numbers jumped 45 per cent, helped by the acquisition of Shanghai Airlines Co and the opening of the World Expo in May. China Eastern also made a 155.6 million yuan currency gain after the stronger yuan pared the value of dollar-denominated debts racked up from buying Boeing Co and Airbus SAS planes.
"China Eastern is the biggest winner from both the Expo and the yuan," said Harry Chen, a Shenzhen-based analyst at Guotai Junan Securities Co. "A recovering economy also improved passenger and freight volumes."
China Eastern made a first-half operating profit of 2.54 billion yuan, compared with 2.03 billion yuan a year earlier. It carried a total of 30.1 million passengers.
The airline fell 4.6 per cent to HK$3.94 as of the close of trading in Hong Kong on August 27. The company has climbed 42 per cent this year, compared with a 49 per cent gain for China Southern Airlines Co, the nation's biggest carrier, and an increase of 37 per cent for Air China Ltd.
About 20 million people went to the Shanghai Expo in its first two months. The six-month exhibition may draw a total of 70 million visitors, according to the organisers.
China's currency has gained about 0.4 per cent this year helped by the central bank's pledge on June 19 to implement a more flexible currency-exchange rate regime.
