Hainan Airlines and Shanghai Airlines posted third-quarter net losses of 260.8 million yuan (US$38.1 million) and 437.4 million yuan respectively as declining domestic demand and high fuel prices continued to wreak havoc on China’s airlines.
Hainan reported a 228.9 million yuan profit in the third quarter of 2007 while SAL was 77.3 million yuan in the black.
In the three months ended on Sep. 30, HNA’s operating revenue fell 8% to 3.41 billion yuan against a 9.7% increase in operating expenses to 3.07 billion yuan. SAL’s operating revenue dropped 9% to 3.15 billion yuan while expenses climbed 6% to 3.59 billion yuan. Neither carrier released traffic figures.
Through the first nine months, HNA remained profitable to the tune of 50.2 million yuan, although that figure represented a steep decline from the 419 million yuan earned in the year-ago period. SAL lost 414 million yuan through the nine months.