October 28 -- Air China (601111, 0753.HK) reported a 26.46 percent year-on-year drop in third quarter net profit attributable to shareholders to 3.8 billion yuan, reports China Business News, citing a company filing.

For the first three quarters, net profit attributable to shareholders fell 20.25 percent year-on-year to 7.86 billion yuan. 

The decline in net profit was attributed to the 92.95 percent drop in gains from fair value changes, and the 56.1 percent drop in investment returns from Cathay Pacific Airways (0293.HK).

Separately, China Southern Airlines (600029.SH, 1055.HK) posted a 2.99 percent growth in third quarter net profit attributable to shareholders to 3.13 billion yuan.

For the first three quarters, net profit attributable to shareholders increased 15.05 percent year-on-year to 5.89 billion yuan.

According to the report, the third quarter is the traditional peak season for airlines. China Southern, with the largest network and highest transport volume in the domestic market, thus benefited from the strong market demand.

An analyst from Minsheng Securities said China Southern will benefit from lower oil prices and yuan appreciation.

Shares of Air China rose 0.88 percent to close the morning session at 8.04 yuan per share.

Source:CapitalVue