Chinese carriers’ results attest to industry volatility

Courtesy Wikipedia Commons

Courtesy Wikipedia Commons

MORE dismal results from other Asian carriers only attest to the continuing volatility of the airline industry, and this is reflected in a region said to be the beacon of the business that analysts had predicted to be finally heading back into far healthier numbers.

China’s three major state-owned airlines – Air China, China Eastern Airlines and China Southern Airlines – posted big decline in annual profits because of the weak global economy, higher jet fuel prices and smaller foreign currency gains. Profit plunged by half for China Southern and by a third for Air China and China Eastern.

The results for 2013 may yet show an improvement on the poorer performance reported for 2012, so it is still a wee bit too early to expect the International Air Transport Association (Iata) to revert to downgrading its forecasts as it did ever so often in the past three years. The signs for now though are not all that encouraging.

Advertisements

About David Leo
David Leo has more than 30 years of aviation experience, having served in senior management in one of the world's best airlines and airports. He continues to maintain a keen interest in the business, writes freelance and provides consultancy services in the field.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: