Slower economic growth and competition from high-speed railways were a drag on the first-half performance of domestic airlines, though there was wide divergence in the sector, the carriers' interim reports show.
On Monday, China Southern Airlines Co Ltd became the first carrier among the nation's top three to report first-half results.
The Guangzhou-based carrier saw revenue slip 4.2 percent year-on-year to 46 billion yuan ($7.5 billion), while net profit tumbled 32.7 percent to 302 million yuan, the third decline in a row.
In contrast, Beijing-based Air China Ltd, which released its interim report a day later, said net profit rose 7.31 percent to 1.1 billion yuan, ending a two-year decline. Revenue, however, fell 3.58 percent to 45.9 billion yuan.
Both airlines benefited from the yuan's appreciation against the dollar, which yielded foreign-exchange gains of 1.44 billion yuan for China Southern and 1.12 billion yuan for Air China.
Hainan Airlines Co Ltd, the nation's fourth-largest carrier, reported robust profitability. It said on Thursday that revenue grew 3.83 percent to 14.4 billion yuan, with net profit soaring 29.28 percent to 645 million yuan.
Hainan Airlines credited the growth to an enlarged fleet, which expanded to 120 planes from 109, as well as increasing passenger traffic. In the first half, the airline carried 12.46 million passengers, up 13.38 percent.
China Eastern Co Ltd posted 41.48 billion yuan in revenue, up 2.66 percent year-on-year, and 763 million yuan in net profit. But analysts were downbeat about its performance.
Shanghai International Airport, which operates Pudong International Airport and the smaller Hongqiao International Airport, generated 2.47 billion yuan in first-half revenue, up 8.68 percent year-on-year. Net profit rose 18.29 percent to 893 million yuan.
Source: Xinhua
