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Chinese airlines lose on depreciation of renminbi

By Wang Wen (chinadaily.com.cn) Updated: 2014-03-20 16:08

Chinese airlines lost 700 million yuan ($112.6 million) on currency exchange in February, because of the depreciation of the renminbi, while they earned 100 million yuan of exchange income in the same month of 2013, China Business News reported on Thursday.

The depreciation of the renminbi is bad news for Chinese airlines, as they buy airplanes using dollars and the depreciation led to a loss on their balance sheets.

In the first half of 2013, the three main carriers' exchange income exceeded their total net profits, because of the appreciation of the renminbi.

But China's currency has continued to depreciate recently and in February dropped by 1.38 percent.

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