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China Eastern Airlines reported a 38% drop in Q3 net profit Friday, dragged down by a weakening yuan and rising fuel and debt costs. While Chinese airlines have seen revenue surge in tandem with growing travel demand, their costs have been recently by rebounding oil prices and a volatile currency. China Eastern said net profit attributable to shareholders dropped to CNY2.2b (US$317m) in the July-to-September period, from CNY3.6b a year earlier, although revenue rose 13.5% to CNY33.5b. For the first 9 months of the year, net profit was down 43.3% from a year earlier to CNY4.5b. The yuan has fallen by about 6% against the US dollar since the start of this year, pushing up financing costs at airlines which have bought planes with mainly US dollar-denominated loans. <br/>

Delta Air Lines CE Ed Bastian said Friday he was satisfied with pilot contract language governing the outsourcing of regional flights and does not see it becoming an issue during upcoming negotiations. Bastian said he was "happy” with existing" scope clauses which set guidelines on the size of planes that can be operated by regional feeder carriers, among other things. Commercial planemakers are closely watching for any change in pilot scope clauses, which bar planes heavier than 39,000 kg with more than 76 seats from regional routes, where pilots are generally paid less than their mainline counterparts. Pilots are fiercely opposed to any changes. Delta's contract with its pilots becomes amendable in 2019. The 110-seat narrowbody aircraft will serve as a "cornerstone of domestic growth,” Bastian said. <br/>