July 15, 2010 (Chinavestor) China Eastern Airlines (NYSE:CEA), the second largest Chinese carrier, reported that profits surged to RMB1,173,507,000 ($173.1 million) for the first six months of the year. This represents an increase of over 50% from the corresponding period of 2009.
The company attributes the increase to the following four factors: "
- The air transportation market has been recovering rapidly and continuing to grow this year. In particular, the air transportation market of the People’s Republic of China has continued to grow rapidly.
- The gradual effect of the synergy brought by the absorption of Shanghai Airlines by the Company, which the progress of the implementation is underway.
- A substantial growth in the passenger traffic for Shanghai’s passenger transportation market as brought by the World Expo held in Shanghai.
- The Company’s efforts in continual improvement and enhancement of its operations and management standard, which has fostered steady growth of its operational efficiency."
Detailed break-down of information will be announced in the interim report, coming later this month. Shares of Chinese airliners - China Eastern Airlines (NYSE:CEA), China Southern Airlines (NYSE:ZNH) and Air China (HKG:0753) rose 15.6 percent, 10.8 percent and 15.1 percent, respectively on the Hong Kong Stock Exchange since July 6, 2010.