Air China issues warning of lower profits
July 18, 2012, Beijing, China - Air China, one of China's three major state-owned airlines, has warned its first-half profit will fall by at least 50 per cent due to the country's economic slump.
Air China's warning Wednesday comes amid a flurry of announcements by prominent Chinese companies from manufacturers to department stores of sharp profit declines due to the economic slowdown.
China's second-quarter growth slowed to a three-year low of 7.6 per cent. That is robust compared with the United States and Europe but hurts Chinese companies that have come to depend on high growth to drive demand.
Air China blamed its woes on the slowdown in domestic and foreign travel and higher fuel prices.
China's two other major state-owned carriers, China Eastern and China Southern, issued similar profit warnings earlier.