1st Quarter Results

24 Apr 2008 16:40

Air China Ld24 April 2008 Air China Limited Announces 2008 First Quarter Results • Operating revenue grew 21.8% y-o-y to RMB12.76 billion from RMB10.47 billion • Operating profit rose 114% y-o-y to RMB1.10 billion from RMB0.51 billion • Net profit attributable to shareholders grew 147% y-o-y to RMB1.04 billion from RMB0.42 billion • Basic earnings per share grew 147% to RMB0.09 from RMB0.04 Hong Kong - April 24, 2008 - Air China Limited ("the Company", HKEX: 753; LSE:AIRC; SSE: 601111; ADR OTC: AIRYY) today announced its first quarter results forthe three months ended March 31, 2008 (the "Period"). (Important notice: All figures in this report are unaudited and are prepared inaccordance with the PRC GAAP. The operating figures include those of Air Macau.) In the first quarter of 2008, the Company's operating revenue increased 21.8%y-o-y to RMB12.76 billion. Operating profit rose 114% y-o-y to RMB1.10 billion.Net Profit saw a y-o-y increase of 147% to RMB1.04 billion. Earnings pershare and return on net asset were RMB0.09 and 3.27% respectively. The growth in earnings was primarily attributed to the Company's effectivecontrol of rising jet fuel costs and the ability to weather strong competitionfrom domestic and international carriers. The Company's solid profitabilityfurther cemented its leading position among Chinese carriers and furtherestablished its brand recognition. Operational and Business Highlights The Company sustained a strong level of profitability during the traditional lowseason in the first quarter. Against the backdrop of a blooming domesticmarket, the Company experienced steady improvement in operation performance. During the period, the total number of passengers carried by the Companyincreased 4.92% to 8.82 million. Passenger load factor improved to 76.73%,representing a 2.08 percentage point increase. Cargo and mail carried decreased3.31% y-o-y to 248 thousand tonnes in the first three months of 2008. Cargoload factor was 56.82%, a y-o-y increase of 5.15 percentage points. The steadyimprovement in passenger load factor provided a solid foundation for theCompany's earnings growth. Passenger Services Revenue passenger kilometer ("RPK") was 17.14 billion, an increase of 8.66% overthe same period of 2007. International RPK was 7.36 billion, up 11.57% y-o-y.Domestic RPK recorded a 6.68% y-o-y growth to 9.04 billion. Regional (Hong Kongand Macao) RPK was 0.74 billion, representing an increase of 5.45%. For the first three months, the load factor of international, domestic andregional routes were 74.86%, 78.93% and 70.22% respectively, representing y-o-ygrowth of 2.15, 2.1 and 1.93 percentage points. Total capacity measured byavailable seat kilometer (ASK) saw a y-o-y increase of 5.72% to 22.34 billion. Cargo Services Revenue freight tonne kilometer ("RFTK") increased 0.69% to 0.883 billion.Cargo capacity, measured by available freight tonne kilometer ("AFTK"),decreased 8.44% from the same period of 2007 to 1.55billion. Cargo load factorwas 56.82%, a y-o-y increase of 5.15 percentage points. About Air China Limited Air China Limited (Air China) is the national flag carrier of China and aleading provider of air passenger, air cargo and airline-related services inChina. Its operational head office is in Beijing. The Company's extensive routenetwork serves major Chinese cities and numerous international destinations,with dominant market share measured by total traffic volume for the BeijingCapital International Airport. It also provides airline-related services,including aircraft maintenance, ground services and in-flight catering servicesin Beijing, Chengdu, Hong Kong and other locations through its own businessunits and joint ventures. As of December 31, 2007, the Group operated a fleet of220 aircraft, serving 121 destinations in 27 countries. Air China waslisted on the Hong Kong Stock Exchange and the London Stock Exchange on December15, 2004 under codes 0753 and AIRC respectively. On August 18, 2006, Air Chinawas listed on the Shanghai Stock Exchange under code 601111. On August 4, 2004,Air China was designated as the sole official passenger airline partner of theBeijing Olympic Games. For further details, please visit Air China's website:www.airchina.com.cn. Safe Harbor Statement This press release contains projections and forward-looking statements thatreflect the company's current views with respect to future events and financialperformance. These views are based on current assumptions which are subject tovarious risks and which may change over time. No assurance can be given thatfuture events will occur that projections will be achieved, or that thecompany's assumptions are correct. Actual results may differ materially fromthose projected. Contact: Air China: Investor: Rao Xinyu, Head of IR Ruby YimAir China Limited Taylor Rafferty, Hong Kong+86 (10) 6146 2777 +852 3196 3712raoxinyu@mail.airchina.com.cn AirChina@taylor-rafferty.com Joyce Zhang Dana JohnstonAir China Limited Talyor Rafferty, New York+86 (10) 6146 2560 +1 212 889 4350joycezhang@mail.airchina.com.cn AirChina@taylor-rafferty.com This information is provided by RNS The company news service from the London Stock Exchange