Companies

China Southern says H1 profit may rise 5000%

(Agencies)
Updated: 2010-07-29 15:29

China Southern Airlines Co, the nation's biggest airline by fleet size, rose to the highest level in more than two months in Shanghai after saying first-half profit may have risen 5,000 percent.

The carrier jumped as much as 4.1 percent to 7.67 yuan ($1.13), the highest intra-day level since May 10, and changed hands at 7.43 yuan at the 11:30 am trading break in the city. The shares gained as much as 5.8 percent in Hong Kong trading.

Related readings:  China Eastern expects 50% net profit hike in H1  China Southern to join SkyTeam  China Southern Q1 profit surges sixfold  China Southern's fleet ranks world's No 6

Demand for aviation services is gaining on a rebound in the domestic economy, China Southern said in a filing to Hong Kong's exchange yesterday. The airline industry globally may post its first net income in three years this year as travel demand revives after the worst recession in more than six decades, according to the International Air Transport Association.

China Southern also improved operational efficiency, according to the filing.

The carrier will also report in the first half a gain from the disposal of its stake in MTU Maintenance Zhuhai Co, it said. The airline said in April it sold the 50 percent stake for 1.6 billion yuan ($236 million).

Last year, the carrier's first-half profit slumped 97 percent as increased passenger numbers failed to offset a lack of currency gains.