Air China Limited was the latest airline today announce spectacular profits for the year 2010, almost doubling operating profit to RMB 10.93 Billion ($1.67 Billion) (98.65% improvement from 2009), with the board considering a RMB 12.01 billion ($ 1.83 Billion) (up 147.31%) overall dividend payment to shareholders. Very strong increase in domestic demand (46.67%) for passenger transportation had prompted the airline to increase capacity by up to 33.92% over 2009 while still retaining a very strong load factor at 80.03%.
The group total revenue for the 12 month period ending December, 31st 2010 was RMB 82.49 Billion ($12.57 Billion) (60.50% increase from 2009) of which RMB 68.14 Billion ($10.38 Billion) were generated from the passenger business (up 59.59%) and RMB10.07 Billion ($1.53 Billion) from the transportation of cargo (up 86.64% from 2009). The airline had trouble containing expenses which grew 55.93% (to RMB 71.56 Billion, $10.9 Billion) on account of an escalated RMB 24.10 Billion ($3.67 Billion) fuel bill (up 66.57%) making fuel the costliest single item representing one third of total expenses. The airline nonetheless benefited from advantageous foreign exchange appreciation of the Yuan Renmimbi against the US dollar totaling RMB 1.92 billion ($ 297 Million) in revenue. Similarly fuel costs were somewhat mitigated with derivatives contract addition of RMB 1.97 Billion ($ 300 Million) .