China's big three airlines hit by US$2.5b forex losses

Beijing

CHINA'S big three state-owned airlines combined suffered about US$2.5 billion in foreign-exchange losses last year after the country unexpectedly devalued the yuan in August, squeezing passenger yields and limiting profit gains from declining oil prices.

Net income at China Southern Airlines Co, Asia's largest carrier by passengers, more than doubled to 3.7 billion yuan (S$769.2 million), while China Eastern Airlines Corp's profit climbed 33 per cent to 4.5 billion yuan. Both fell short of the average analyst estimates - 3.9 billion yuan and 5.3 billion yuan, respectively - compiled by Bloomberg. Air China Ltd's net income rose 83 per cent to 7.06 billion yuan, beating an estimate of 6.78 billion yuan. The companies released separate statements to the Hong Kong exchange on Wednesday, based on international accounting standards.