China's top airlines report quarterly profit after years of losses

China Southern Airlines and China Eastern Airlines each reported first quarterly profits in more than three years on Friday, as a pickup in international flights complemented a recovery in the domestic market. The results, coupled with similarly encouraging figures from Air China, are helping to fan industry hopes for China's big three state carriers to finally step out of the difficulties brought by the COVID-19 pandemic. China Southern, based in the southern city of Guangzhou, reported Q3 profit of 4.2b yuan ($573.89m), compared with a loss of 1.0b yuan in the prior quarter, and a loss of 6.1b in the year-earlier quarter. Shanghai-headquartered China Eastern booked a quarterly net profit of 3.6b yuan, compared with a loss of 2.4b yuan in the previous three months, and a loss of 9.4b yuan in the year-earlier period. The Hong Kong-listed shares of flagship Air China rose almost 6% in their biggest jump in four months, but gave back some gains to close up 4.7% after the airline reported its first quarterly profit in nearly four years. Air China said Q3 net profit was 4.24b yuan on Thursday, versus a loss of 600m yuan in the previous quarter and 8.67bi yuan in the year-ago period. The aviation regulator said on Friday that air passenger numbers in Q3 reached 180m, or 2.6% higher than the level pre-pandemic level in 2019, and a record for any quarter. However, the number of international flights, especially to developed countries, is still markedly smaller than in 2019, said Li Hanming, an independent expert on Chinese aviation. "Those routes are the most lucrative," Li said. Air China and China Southern did not give a breakdown of revenue contributions from domestic and international travel. Air China's profit followed 15 quarters of losses, brokerage Jeffries said in a client report, and turned earnings positive for the nine months of this year with a profit of nearly 800m yuan.<br/>