The airline confirmed a quarterly net profit of 270.60 million yuan, or $40.6 million, underscoring a difficult environment for the flag carrier. Company leadership pointed directly to the steep rise in global oil prices as the primary driver behind the substantial year-on-year volatility in its financial performance.
In section Market Quotes
Air China Profit Slumps 93% as Fuel Costs Surge
A 93% collapse in third-quarter net profit reveals the intense pressure Air China faces from rising energy prices. Despite a 5.35% increase in revenue to 51.695 billion yuan, the carrier struggled to contain expenses, leaving the bottom line severely eroded by the surging cost of jet fuel.
This quarterly result deepens a broader slump for the year. For the first nine months, the airline recorded a net loss of 2.015 billion yuan, a sharp reversal from the 1.87 billion yuan profit posted during the same period in the previous year. Investors have responded to these figures and the persistent margin pressure with skepticism, driving Air China shares down more than 30% in Shanghai and over 40% in Hong Kong throughout the year.
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