First half profits at Air China slumped by more than 55% in the face of a “complex and volatile economic environment” both internationally and domestically.
The Beijing-based carrier saw profit attributable to shareholders drop to RMB510 million.
The profit drop came despite passenger numbers rising by more than 7% to 40.1 million in the six months to June 30.
The airline said it had improved the passenger experience on Frankfurt, London, Paris and US routes by only using Boeing 777-300ER aircraft.
“The group has proactively met our challenges by continuously pushing forward several strategic priorities and adjusting our operational and sales tactics in a timely fashion,” chairman Cai Jianjiang said.
“In the second half of 2014, the China’s economy is likely to maintain a trend of overall stable development.
“We predict that the passenger aviation business will maintain the growth trend in the first half and the cargo business is likely to continue to improve.
“However, the industry’s internal and external competition will remain intense, while exchange rates and oil prices still remain uncertain.
“In light of these challenges, the group will continue to implement measures to create new competitive advantages and to gain new development opportunities so that we can provide better returns to our shareholders and the community.”