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China Eastern Airlines expects up to 60% rise in 2014 earnings

Friday, January 30, 2015 - 18:06
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China Eastern Airlines Corp Ltd said on Friday it expected an up to 60 per cent jump in its 2014 earnings thanks to falling fuel prices.

[BEIJING] China Eastern Airlines Corp Ltd said on Friday it expected an up to 60 per cent jump in its 2014 earnings thanks to falling fuel prices.

In a brief stock exchange filing, China Eastern said its net income last year is estimated to have risen between 40 and 60 per cent, from 2.38 billion yuan (US$380.83 million) a year earlier.

Fuel expense typically accounts for about 40 per cent of an airline's operating cost.

Air China Ltd, China Southern Airlines Co Ltd, Hainan Airlines Co Ltd and Spring Airlines Co Ltd will all benefit from the fuel price fall, industry observers say.

In response to a continuous fall in fuel prices, Chinese carriers have cut the fuel surcharge for domestic routes five times since September last year.

REUTERS