Air China warns of sharp 1H profit shortfall

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Air China expects to its net profit for the first half of its 2014 fiscal year to fall up to 65%.

China’s flag carrier expects to post an attributable net profit of around CNY1.12 billion ($180.3 million) for the six months ending 30 June, it revealed in a disclosure on the Hong Kong Stock Exchange.

The airline attributes the weakness to higher expenditure caused by the substantial depreciation of the Chinese yuan against other currencies.

Air China's disclosure follows a 14 July announcement by China Southern Airlines that it expects to post a net loss between RMB900 million to 1.1billion ($145 million to $177 million) for its fiscal first half.