Yuan Depreciation Hammers Airline Profits

Bloomberg: China Eastern Air Takes $770 Million Forex Hit Amid Yuan Turmoil
China Eastern Airlines Corp.’s foreign-exchange losses surged nearly 250 times last year, as the dollar gained and the yuan fell just as Chinese airlines were expanding international capacity.

The losses ballooned to 5 billion yuan ($772 million) last year from 202 million yuan in 2014, China Eastern said in a Shanghai stock exchange filing Wednesday. Net income at the nation’s second-largest carrier by passengers rose 33 percent to 4.5 billion yuan in 2015, according to Chinese accounting standards, the company said.

China Southern's forex losses exceeded its full year profit.

WallStcn: 人民币贬值之痛:三大航去年汇兑损失激增 南航汇损超全年净利

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