Air China's profit leaps over 720% in H1 due to lower fuel costs

Air China, the country's flag carrier, said its net profit surged more than 720% year-on-year in the first half of 2015, supported by lower fuel prices.

The company made net profits of 4.19 billion yuan ($655 million) in the first half, up strongly from 510.37 million yuan in the same period last year, it said a statement filed to the Hong Kong stock exchange late on Thursday.

"The global aviation industry was generally healthy with sustained growth in demand and relatively low fuel prices," Air China said, adding a recovery in the world economy and a "steady" Chinese economy supported the company.

China's growth is actually slowing. The economy expanded 7.0% in each of the first two quarters of this year, lower than the 7.4% growth last year, which was its weakest since 1990.

The airline said its operations benefited from lower oil prices, which contributed to a near 30% reduction in fuel costs for the first half.

Air China carried 43.67 million passengers in the first half, up 8.79% from the same period last year, it said.

The airline's stock gained 4.73% in Shanghai trading but dropped 5.00% in Hong Kong on Friday after the results announcement.