Air China has reported a 2015 net profit of CNY6.77 billion ($955 million), up 77% compared to net income of CNY3.82 billion in 2014.

The Beijing-based carrier credited lower fuel prices and “exploding” international market demand growth as main reasons for the much-improved performance.

Full-year operating revenue rose 3.85% to CNY108.93 billion while operating expenses were down 4.8% to CNY83.69 billion owing to a 30.4% decrease in fuel costs.

Passenger boardings increased 8.2% to 89.8 million with an average load factor of 80%, up 0.04 point. Passenger capacity grew 11% to 214.83 billion ASKs against an 11.01% increase in passenger revenue to 171.71 billion RPKs. Cargo capacity rose 18% to 11.98 billion AFTKs while cargo revenue was up 15.2% to 6.56 billion RFTKs.

Last year, Air China introduced 66 aircraft and retired 16 old aircraft. As of Dec. 31, 2015, it operated 590 aircraft with an average fleet age of 6.2 years.

Looking ahead, the airline expects China’s air transport market will continue to maintain rapid growth, but also warns that “increasingly fierce market competition” and exchange rate fluctuations still remain as challenges. In 2015, it recorded CNY5.16 billion in foreign exchange losses.