China Southern expects net loss of up to CNY350m for 1Q

Singapore
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China Southern Airlines has warned that the weaker Chinese yuan will see it record a net loss of up to CNY350 million ($56.2 million) for the quarter ended 31 March.

The airline says in a statement to the Hong Kong stock exchange that the “substantial depreciation” of the yuan over the quartrer has substantially increased its financial expenses, compared to a gain on foreign exchange during the same quarter in 2013

As a result, it expects to record a net loss of between CNY300 million and CNY350 million, compared to a net profit of CNY57 million for the previous corresponding period.

The airline recorded a net profit of CNY2.75 billion for the 2013 financial year, an increase of 2.3% on the previous year.