Air China: Q3 profits down 26.5 % on falling demand

Air China Ltd, China's largest airliner, said on Thursday that its net profits in the third quarter decreased 26.46 percent year-on-year due to weak international demand and investment losses. Its Q3 net profits totaled 3.8 billion yuan (590 million U.S. dollars). In the first nine months its profits slumped 20.26 percent year-on-year to 7.86 billion yuan. Its sales revenue in the third quarter rose 13.36 percent year-on-year to 28.14 billion yuan. The company said its profits were dragged down by lower contributions from its associate airline, Hong Kong-based Cathy Pacific, following a global air traffic recession this year. The company also suffered a decrease in its fair value of 1.02 billion yuan in the third quarter due to losses in aviation fuel hedge trading.