Travel boom makes Air China soar

Air China is expected to get a big boost from the Beijing Olympics

Air China has reported a 147% rise in quarterly profits, helped by a travel boom sparked by the rapid growth in the Chinese economy.

The airline made net profits of 1.04bn yuan ($149m; £75m) in the first three months of 2008.

The strengthening yuan against the US dollar has also helped because the airlines pay for fuel and other expenses in dollars.

Air China is expected to get a boost from people travelling to the Olympics.

Air China shares rose more than 5% on Friday.

While China's airline sector is growing quickly, it is struggling to modernise itself and many of the carriers are trying to bring in foreign investors.

Air China is 18% owned by Cathay Pacific, while China Eastern's attempts to sell a stake in the airline to Singapore Airlines was thwarted by shareholders.

Air China also tried to buy a stake in China Eastern, but was rebuffed because the airline wanted to bring in the expertise of a foreign carrier.