Chinese flag carrier Air China Ltd. said Thursday it has adjusted capacity on some routes to Japan amid weak demand, in some cases deploying smaller aircraft, though it expects minimal financial impact from the crisis in Japan.
The Beijing-based carrier said the adjusted capacity will remain in effect through June, adding it will continue to monitor the situation. The airline said revenue could fall 1% if Japan demand remains low for a year.
Flights to Japan account for around 5% of Air China's available seat kilometers, a key measure of passenger capacity.
Separately, Air China reiterated it expects every 1% appreciation in the Chinese yuan to boost its profit by 600 million yuan. It also said income from fuel surcharges could help offset 80% of additional fuel costs, as oil prices continue to climb.
On Tuesday, Air China said its 2010 net profit more than doubled to 12 billion yuan (US$1.8 billion) from 4.85 billion yuan a year earlier, boosted by a continued recovery of air travel demand as well as one-off foreign exchange gains.
The Beijing-based carrier said the adjusted capacity will remain in effect through June, adding it will continue to monitor the situation. The airline said revenue could fall 1% if Japan demand remains low for a year.
Flights to Japan account for around 5% of Air China's available seat kilometers, a key measure of passenger capacity.
Separately, Air China reiterated it expects every 1% appreciation in the Chinese yuan to boost its profit by 600 million yuan. It also said income from fuel surcharges could help offset 80% of additional fuel costs, as oil prices continue to climb.
On Tuesday, Air China said its 2010 net profit more than doubled to 12 billion yuan (US$1.8 billion) from 4.85 billion yuan a year earlier, boosted by a continued recovery of air travel demand as well as one-off foreign exchange gains.
