China Southern H1 profits down 83.7%

BEIJING -- China Southern Airlines Co, the country's largest carrier in terms of passenger numbers, said late Monday that its profits fell 83.7 percent to 449 million yuan ($71.3 million) in the first half due to intensified competition and increasing costs.

The company's revenues rose 13.2 percent from a year earlier to 48 billion yuan, while it saw a gain of 0.05 yuan per share, the Guangzhou-based company said in a statement filed to the Shanghai Stock Exchange.

The company said it expects a recovery in the domestic aviation market in the second half, as the country's economy will likely improve and boost demand for flights.

Meanwhile, relatively stable fuel prices and exchange rates will help improve the company's performance, the statement said.

China Southern's shares dropped 0.82 percent to 3.65 yuan per share as of 10:40 am Tuesday.