Air China (HKG:0753, SHA:601111) swung to a net attributable loss in the first three quarters as growth in revenue and passenger traffic failed to outpace rising costs, primarily driven by a steep rise in jet fuel prices.
The airline logged a net loss attributable to shareholders of the parent company of 2.02 billion yuan from a net attributable profit of 1.87 billion yuan in the prior-year period, according to a Thursday filing with the Hong Kong bourse. Loss per share was 0.11 yuan, versus earnings per share of 0.11 yuan.
Revenue edged up about 8.6% to nearly 141 billion yuan from 129.8 billion yuan in the year-ago period.
Total operating costs outpaced revenue, rising to 151.2 billion yuan from 134.3 billion yuan. Operating expenses contributed 138.7 billion yuan, up from 120.7 billion yuan, leading to an operating loss of 3.47 billion yuan from an operating profit of 1.22 billion yuan.
The loss came despite passenger throughput rising 4.8% and passenger traffic rising 7.9% during the first nine months. Cargo and mail carried edged up 0.6%, while cargo traffic grew 5.6%.
For the third quarter alone, the carrier remained in the black, though net profit attributable to shareholders plunged nearly 93% to 270.6 million yuan. Earnings per share plummeted 91% to 0.02 yuan.
Revenue for the three months through Sept. 30 increased 5.4% to 51.7 billion yuan.
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