China Southern Airlines 2007 net up nearly 800%

China Southern Airlines Co<600029><1055>, the nation's largest carrier by fleet size, said on Sunday its 2007 net profit surged 786% powered by RMB appreciation and greater passenger throughput.

According to the Chinese accounting standards, net profit climbed to RMB 1.85 billion (US$264 million), over RMB 209 million a year earlier, said the company in a statement. Operating revenue jumped 18% year-on-year to RMB 55.87 billion during the same period, while passenger throughput hit 56.9 million, up 16% from 49.2 million in 2006.

The Guangzhou-based carrier benefited most from the 7% gains of the Chinese currency against the U.S. dollar last year, cutting the value of its U.S. dollar-denominated debts, which helped offset surged fuel costs.

China Southern plans to issue RMB 4 billion worth of one-year bonds in the interbank market, according to the statement, and its Xiamen unit, in which China Southern holds a 60% stake, has won board approval to buy 20 Boeing Co. 737 aircraft worth of US$1.5 billion at list price.

In addition, the carrier returned to profit in the first quarter with net income hitting RMB 796 million (US$114 million) against a loss of RMB 188 million a year earlier under domestic accounting standards.