Air China says Q1 net profit surged due to cheaper fuel

[BEIJING] Air China Ltd, the country's flag carrier, said late on Wednesday its net profit jumped to 1.7 billion yuan from 93 million yuan a year earlier, helped by a significant fall in jet fuel prices.

Fuel expense makes up about 40 per cent of airlines' overall operating costs.

Air China's Hong Kong-listed shares closed down 1.85 per cent ahead of its quarterly earnings announcement on Wednesday, lagging a 0.15 per cent fall of the Hang Seng index.

REUTERS