China Southern Airlines hits profit turbulence

The industrial slowdown continues to erode airline profit, and China Southern Airlines Co Ltd reported falls in both revenue and net profit in the first half of the year, sources said.

The Guangzhou-based carrier said revenue edged down 4.2 percent year-on-year to 46 billion yuan ($7.5 billion) from January to June, and net profit tumbled 32.7 percent year-on-year to 302 million yuan.

Under the accumulated pressure of low demand and oversupply, airlines lowered average ticket prices to win passengers and market share.

The airline saw declining revenue despite a 10.2 percent year-on-year increase in passenger volume in the first six months.