日韩精品久久一区二区三区_亚洲色图p_亚洲综合在线最大成人_国产中出在线观看_日韩免费_亚洲综合在线一区

US EUROPE AFRICA ASIA 中文
Business / Industries

Chinese airlines in currency turbulence

(Xinhua) Updated: 2014-07-18 14:35

SHANGHAI - The yuan's nosedive has put a damper on the earnings of Chinese airlines, already flying low through an economic slowdown, with half-empty premier cabins. China Southern Airlines will book a loss of up to 1.1 billion yuan in its interim report, while Air China warned its profits could slump by up to 65 percent.

The yuan has depreciated about three percent since Beijing allowed the currency to slide in January, and both airlines blame slower growth and yuan depreciation for their poor performance.

A UBS report predicts that the yuan will stabilize around its current relatively weak levels. It was more or less constant appreciation of the yuan since 2005 that helped Chinese airlines increase their formerly handsome earnings.

Rapid expansion of China's airlines has come at the cost of a huge amount of foreign currency debt. Aircraft and fuel do not come cheap and thus any decline in the yuan can considerably drive up costs.

The problems of the Chinese aviation industry run much deeper than some anticipated profit warnings. It has been grappling with weak earnings since 2010, when China Southern Airlines, Air China and China Eastern Airlines - China's big three - made more than 23 billion yuan in net profits. Each raked in more than one billion yuan in the first half of 2013, purely on the back of yuan appreciation.

"The industry is slowing due to the weaker economy and the spread of bullet train networks," said Li Jun, analyst with China Galaxy Securities.

The big three plus Hainan Airlines have been striving to reduce costs, lowering rates paid to domestic ticketing agencies from three percent to two percent. Last year, Air China spent 7.2 billion yuan on sales.

They are also facing tougher competition. The number of airlines has risen by over 30 percent in the past year, said Si Xianmin, chairman of China Southern.

To cap all that, the nationwide austerity campaign has brought a virtual end to officials traveling in luxury and clamped down on unnecessary overseas trips. This has forced airlines to roll out bigger discounts for business and first-class seats.

Several airlines are now looking at the low-cost market, which currently accounts for less than seven percent of China's total air travel volume. Hainan Airlines has turned two of its subsidiaries into low-cost carriers, and China Eastern plans to do the same with China United Airlines.

Budget airlines are expected to prop up demand for short-to medium-range narrow-body airliners. China United Airlines, operating 26 Boeing 737 aircraft, plans to triple its fleet size to 80 by 2019.

The weakening currency, however, has not stopped major players from buying more Boeing and Airbus aircraft. China Southern ordered 80 Airbus aircraft in May and China Eastern last month said it had plans to buy 80 Boeing jets.

Chinese airlines in currency turbulence

Chinese airlines in currency turbulence

First private flying club draws crowds in Tianjin China's first air taxi brings sky-high fares

Hot Topics

Editor's Picks
...
...
主站蜘蛛池模板: 欧美一区二区三区免费不卡 | 天天碰人人 | 欧美色性视频 | 欧美一区二区免费 | www国产精品 | 亚洲精品一区国产 | 亚洲第一视频 | 久久中文字幕网 | 欧美线在线精品观看视频 | 青青草最新网址 | 一级做a爰片久久毛片 | 波多野结衣一区二区三区在线观看 | 国产一区二区精品在线 | 性69式视频在线观看免费 | 国产精品免费av | 大色综合| 欧美精品18videosex性俄罗斯 | 久久久久久久一区二区 | 成人免费淫片aa视频免费 | 色综合久久婷婷天天 | 国产欧美一级二级三级在线视频 | 青青青国产依人精品视频 | 久久av网 | 久久日本精品在线热 | 在线一区观看 | 亚洲免费观看在线视频 | 黄色网址在线视频 | 自拍视频在线观看 | 国产精品www视频免费看 | 精品国产一区二区三区久久 | 日本午夜视频 | 欧洲怡红院 | 天天操天天射天天舔 | 国产秋霞 | 蜜桃av一区二区三区 | 国产在线观看www鲁啊鲁免费 | 国产手机在线αⅴ片无码观看 | 久久精品23 | 国产激情视频 | 日韩精品网站 | 日韩在线观看中文 |