April 29 (Bloomberg) -- Hainan Airlines Co., the Chinese carrier backed by U.S. billionaire George Soros, said first- quarter profit surged more than fivefold on a stronger yuan and higher ticket sales.

Net income jumped to 286.7 million yuan ($41 million), or 0.08 yuan a share, from 51.2 million yuan, or 0.014 yuan, a year earlier, the company said today in a Shanghai stock exchange statement. Sales rose 3.4 percent to 3.57 billion yuan.

The nation's fourth-largest carrier joins China Southern Airlines Co. and other Chinese carriers in posting improved first-quarter earnings after a 4.2 percent appreciation in the yuan cut the value of their dollar-denominated debt. Hainan Airlines also benefited from tourist demand for flights to Haikou, in Hainan province, where it is based.

Hainan Airlines reported preliminary earnings April 26. Companies listed in China are required to make an announcement if they expect profit to rise or fall by 50 percent or more.

Hainan Airlines rose 0.6 percent to 8.15 yuan at 9:48 a.m. in Shanghai trading today. The stock has fallen 37 percent so far this year.

This year, China's fourth-largest carrier aims to boost overall passenger numbers 16 percent to 16.75 million, the carrier said March 26. It flew 14.5 million passengers last year, an increase of 0.7 percent.

Hainan Airlines will buy 10 planes for about 3.5 billion yuan this year and lease another seven, it said in March.

For related news:
Hainan Airlines earnings: {600221 CH <Equity> TCNI ERN <GO>}
Airlines in China: {TNI CHINA AIR <GO>}
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Last Updated: April 28, 2008 21:57 EDT