Major Chinese Airlines See Significant Profit Drop Despite Record High Passenger Traffic

China’s three largest airlines, which are state-owned, reported a significant slip in third-quarter profits despite record-high passenger traffic. Analysts say it’s the result of China’s falling ticket prices amid its ongoing sluggish economy. China Eastern Airlines reported a net profit of 2.63 billion yuan ($369 million), down 28.2 percent from the same period last year. China Southern Airlines, which is China’s largest airline, said on Oct. 28 that its third-quarter net profit fell 23.9 percent year-on-year to 3.19 billion yuan ($448 million), despite the airline serving more passengers. Data from China Southern Airlines showed that the company increased capacity by 11 percent in the third quarter compared with the same period last year, but operating revenue in the third quarter only increased by 4.6 percent, indicating that airfares have fallen....