CHINA Eastern Airlines Corp. on Friday posted a sharp rise in first-half profit, thanks to strong growth in air traffic and lower fuel prices during the year.

    The Shanghai-based carrier said net profit for the first half of this year was 3.56 billion yuan (US$556.4 million), according to Chinese accounting standards, up from a net profit of 15 million yuan. The result was in line with a net profit forecast of 3.50 billion yuan to 3.70 billion yuan issued by the carrier in July.

    The carrier’s first half revenue rose 3.9 percent to 44.31 billion yuan from 42.65 billion yuan on higher air travel demand. Its fuel costs amounted to 10.6 billion yuan, down 29 percent from a year earlier.

    Robust outbound air travel demand and lower fuel prices have buoyed China Eastern’s profitability in the first half. However the carrier’s outlook is overshadowed by China’s recent move to devalue its currency amid a domestic economic slowdown. A weaker Chinese yuan would increase the finance costs of the nation’s major carriers, which hold significant debt in U.S. dollars because of foreign aircraft purchases.

    The carrier plans to acquire 15 Airbus jets for about US$3.6 billion to meet booming demand for air travel. Airbus is scheduled to deliver seven A330s in 2017 and a further eight in 2018.

    China is expected to be the world’s largest air passenger market by 2034. (SD-Agencies)