(Yicai Global) Sept. 1 -- Air China Ltd. [SHA:601111] saw profits dip in the first half despite pulling in CNY58.2 billion (USD8.8 billion) in revenue, its interim report, published on Aug. 31, shows.

The airline carrier and its subsidiaries saw income grow 8.6 percent on the year, while net profit slumped 3.8 percent to CNY3.2 billion (USD504 million).

Core business growth was the key to revenue increase, the report said, particularly passenger transport. Main business income made up more than 97 percent of overall revenue, with passenger transport chipping in CNY51.8 billion.

However, rising costs, particularly of fuel, hit profits. Elevated fuel prices pushed the company's fuel costs up by 40 percent on the year to CNY13.6 billion, making up nearly 30 percent of all costs.

Air China mainly engages in international and domestic passenger travel and cargo, mail and luggage transport. It owns China's most extensive international routes and has the most balanced domestic network with the largest customer groups. The airline is one of the world's largest air transport companies.