China Southern Airlines says 1Q profit down 71 percent as travel demand weakens

China Southern Airlines 1Q profit down 71 percent

BEIJING — China Southern Airlines Ltd., one of China’s three major state-owned carriers, said Tuesday its profit fell 71 percent in the first quarter from a year earlier amid a slump in traffic.

Profit for the three months ending March 31 was 222 million yuan ($32.4 million) or 0.03 yuan per share, the carrier said.

The result added to a string of bleak news for China’s state-owned airlines, which have suffered large full-year losses for 2008 due to record-high fuel costs and weak demand amid the global economic crisis.

China Southern, based in the southern business center of Guangzhou, said its 2008 loss was 4.8 billion yuan ($700 million).

The airline received a 3 billion yuan ($440 million) capital injection from the government in November to help it ride out the crisis.

On the Net:

China Southern Airlines Ltd.: www.csair.com