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China Eastern Airlines expects Q1 profit drop

Updated: 2012-04-14 14:40

(Xinhua)

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BEIJING - China Eastern Airlines said Friday its first quarter profit will likely fall by more than 50 percent year-on-year because of slower growth in passenger volume and higher jet fuel costs.

In a statement filed with the Shanghai Stock Exchange, the Shanghai-based airline said slower growth in passenger traffic and inadequate demand in the international cargo transport market hindered the growth of its air transportation sector.

Meanwhile, the company's operation costs jumped during the first quarter due to rising jet fuel prices, and its foreign exchange earnings plunged because of two-way fluctuations of renminbi exchange rates, according to the statement.

The company's net profits hit 1.01 billion yuan ($160.32 millions) during the first quarter of last year, while earnings per share stood at 0.09 yuan.

The airline's shares climbed 0.26 percent to close at 3.79 yuan Friday.

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