Jul. 11, 2012 (China Knowledge) - China Southern Airlines Co<600029><1055>, the country's largest air carrier by fleet size, said yesterday that it expects its net profit to plunge more than 50% in the first half of this year.
The air carrier’s net profit was RMB 2.76 billion in the six months of 2011.
China Southern Airlines said the sharp decrease in net profit was a result of weakening demand for air travel, higher jet fuel prices and an exchange loss caused by the depreciation of RMB against the U.S. dollar.
In the first quarter of this year, the company’s net profit dropped 74.19% YoY to RMB 319 million, while its core business revenue rose 15.46% to RMB 23.69 billion.