Profits plunged in H1, say China's 'Big Three' airlines

China's three major airlines have all reported more than a 50% drop in the profit forecast in the first six months this year but earnings are expected to recover in the second half of the year, market analysts said Thursday.

Air China, the country's flagship carrier, on Wednesday said it predicted first-half profits to have fallen more than 50% from a year earlier. In the first half of 2011, Air China reported a net profit of 4.063 billion yuan (US$ 645 million). The company blamed weak travel demand, high fuel prices, and fluctuation in foreign exchanges for the loss.

Earlier this month, both China Eastern Airlines and China Southern Airlines estimated their first-half profits to also be down more than 50% compared to last year.

Shanghai-based China Eastern Airlines reaped net profit of 2.45 billion yuan (US$ 384 million) in the first half of 2011.

But market analysts say they expect the earnings to recover in the coming months especially during the summer travel peak season. Fuel prices, meanwhile, are also in the decline, helping airlines to cut operation costs.

UBS Securities analysts said both China Eastern and China Southern can expect domestic travelers to grow by 8% year on year in July while Air China can also expect a 7% rise of domestic travelers from a year earlier.

Profits of the "Big Three" airlines are expected to stabilize or start to grow in the third quarter compared with the same period last year, the analysts added.

Liu Shaoyong, chairman of China Eastern, earlier said he also expected the company's earning to grow in the second half. "For the whole year, China E! astern w ill not be in the red, but profit margins might shrink from a year earlier," Liu said. "The situation is not supposed to deteriorate to the 2008 levels."

Source: Xinhua via Want China Times

Travel India - Fine Dining in New Delhi - 19 Oriental Avenue at Hotel Shangri-La

An upscale restaurant inside Shangri-La hotel that serves Japaense, Thai, and Chinese cuisines. Website www.shangri-la.com/newdelhi An upscale restaurant inside Shangri-La hotel that serves Japaense, Thai, and Chinese cuisines. (New Delhi, India) Today we are at 19 Oriental Avenue, a restaurant inside Hotel Shangri-La, a place known for its Chinese, Thai and Japanese cuisine. "My name is Andrew Steele. I am the General Manager for the Shangri-La, New Delhi. Welcome to 19 Oriental. 19 Oriental is a signature restaurant and it is a specialty restaurant. We have three expatriate chefs. Japanese Chef, a Thai chef and a Chinese chef. Japanese section offers the freshest sushi and sushimi from Japan and all the seafood is jet fresh, directly from Japan. This is our Thai kitchen and our Thai chef. The Thai chef prepares a variety of specialty Thai dishes." Thai food lovers, you must try the Tom Yum Soup and the Thai Curries out here. "We have moved to the Chinese section." "Hi, I am Jimson, from Singapore. Chinese famous dish here which is very popular and most preferred. We have mostly order for the spring rolls, prawns with black pepper sauce and as well as our imported mushrooms and greens." "We have had heads of states, royalty and most of the Indian ministers. All of the business community here in Delhi." I am Guarav, showing you Delhi.

Video Rating: 5 / 5