Hainan Airlines 3Q net income down 40% on rising costs

China’s Hainan Airlines Group posted net income of CNY108.4m ($15.4m) in the Q3, down 40% from Q3 2018, as costs outpaced operating revenue but were offset by other income. Operating revenue rose 10.4% year-over year (YOY) to CNY21.4b, while costs increased 10.8% to CNY21.8b. Non-operating revenue of CNY330.3m, however, help push the group into the black. Flagship carrier Hainan Airlines saw a 10% increase in revenue to CNY11.8b and a 22.6% rise in expenses to CNY10.6b. The carrier recorded a net loss of CNY83m in the quarter. For the first nine months, the group’s operating costs continued to outpace revenue. Costs rose 8.4% YOY to CNY58b and revenue was up 7.9% to CNY56.5b. Net profit declined 16.1% to CNY611.8m. Hainan Airlines will begin codesharing with Iberia, placing its code on the Spanish carrier’s Madrid-Shanghai service and to 20 Iberia destination in Europe. Iberia in turn will add its code to Hainan’s Madrid-Shenzhen route and six other Chinese cities via Shanghai.<br/>