27th Oct 2006 15:41
Air China Limited ("Air China" or the "Company", together with itssubsidiaries, collectively the "Group", HKEX: 753; LSE: AIRC; SSE:601111; ADR OTC: AIRYY) today announced its results for the threemonths ended September 30, 2006 (the "Review Period" or the "Period"). £ (Important notice: All figures in this report were not audited andare prepared in accordance with PRC GAAP.) £ Air China recorded satisfactory operating results for the firstnine months of 2006. Revenue from the principal business amounted toRMB34.806 billion, and the profit from the principal business wasRMB5.4 billion. Net profit was RMB3.345 billion while earnings pershare and net return on asset were RMB0.27 and 10.6% respectively. AirChina was able to maintain its leading market position within the PRCairline market. The Company's stable growth was mainly attributable tothe favorable turnaround in the industry that was driven by the dropin international oil prices, an upward adjustment of fuel surchargesand the continued appreciation of the Renminbi. £ Market turnaround leads to growth in Passenger and Cargo traffic £ Seasonal factors of the airline industry also led Air China tohigher revenue in the third quarter since the period marks thetraditional peak traveling season in the Chinese market. For the Julyto September 2006 period, revenue and profit from the principalbusiness were RMB13.94 billion and RMB2.714 billion respectively,while net profit was RMB3.3 billion. The strong market demand furtherspurred the operating performance to a historical high and contributedto improved passenger and cargo results. With the relatively steadyincrease in capacity, passenger traffic reached 9.045 million, anincrease of 14% over the same period of the previous year. The averagepassenger load factor increased 2.2 percentage points to hit a recordhigh of 80.6%. Cargo and mail traffic reached 225,000 tones, up 16.4%over the same period last year. The cargo and mail load factorincreased 1.9 percentage points to 51.4%. £ Passenger traffic measured by revenue passenger kilometer ("RPK")was 17,357 million, an increase of 16.4% over the same period of 2005.RPK on international routes, domestic routes, and Hong Kong and Macauroutes was 7,432 million, 9,357 million and 568 million respectively,representing increases of 18%, 15.1% and 16.9%. Internationaloperations experienced the fastest growth, reflecting rapidly risingmarket demand. Passenger capacity measured by availableseat-kilometers ("ASK") increased 13.2% to 21,531 million in the thirdquarter. The passenger load factor increased 2.2 percentage points to80.6%. The passenger yield per RPK was RMB0.68. £ Cargo traffic experienced growth of 21% to 873 million revenuefreight tonne kilometres ("RFTK") during the review period. Cargocapacity measured by available freight tonne kilometers ("AFTK")increased 25.6% to 1,699 million. The cargo load factor was 51.4%, anincrease of 1.9 percentage points. The cargo yield per RFTK wasRMB2.19. £ Cost relief brought by decline in oil prices and increase in fuelsurcharge £ The General Administration of Civil Aviation of China ("CACC") hasfurther adjusted the fuel surcharge of mainland airlines toapproximately 80% on average, relieving Air China's cost pressure onjet fuel and thus improving the Company's profitability. The gradualreduction in International oil prices since September this year alsohelped to relieve pressure on jet fuel costs. £ The mainland airline industry benefited from the market reboundand saw growth accelerate. The Company will continue it efforts toincrease capacity, expand route networks and explore new markets.Additionally, the Company benefited from the substantial progress madein the strategic partnership with Cathay Pacific. The Companycompleted its shareholder realignment with Cathay Pacific, CNACLimited, CITIC Pacific Limited and Swire Pacific Limited on September28,2006. £ About Air China £ Air China Limited (Air China) is the national flag carrier ofChina and a leading provider of air passenger, air cargo andairline-related services in China. Its operational head office is inBeijing. It has an extensive route network serving major Chinesecities and international destinations, with dominant market sharemeasured by total traffic volume for the Beijing Capital InternationalAirport. It also provides airline-related services, including aircraftmaintenance, ground services and in-flight catering services inBeijing, Chengdu, Hong Kong and other locations through its ownbusiness units and joint ventures. £ Air China was listed on the Hong Kong Stock Exchange and theLondon Stock Exchange on 15 December 2004 under codes 0753 and AIRCrespectively. On 2 July 2006, Air China debuted its AmericanDepositary Receipt (ADR) listing on the New York Stock Exchange underthe code AIRYY. On 18 August 2006, Air China was listed on theShanghai Stock Exchange under code 601111. On 4 August 2004, Air Chinawas designated as the sole official airline partner of the BeijingOlympic Games. For further details, please visit Air China's website:www.airchina.com.cn. £ For Investor and Media Enquiries: £ Disclaimer £ This press release contains projections and forward-lookingstatements that reflect the company's current views with respect tofuture events and financial performance. These views are based oncurrent assumptions which are subject to various risks and which maychange over time. No assurance can be given that future events willoccur that projections will be achieved, or that the company'sassumptions are correct. Actual results may differ materially fromthose projected. Copyright Business Wire 2006Related Shares:
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