Chinese air carriers report drop in 2012 profit

China’s three state-owned air carriers reported a 39% year-on-year decline in their 2012 profit as demand for air travel sagged and the yuan appreciated at a slower pace against the dollar, The Wall Street Journal reported. Air China (AIRC.NYSE, AIRC.LON, 60111.SH, 0753.HKG), China Southern Airlines (ZNH.NYSE, 600029.SH, 1055.HKG) and China Eastern Airlines (CEA.NYSE, 600115.SH, 0670.HKG) generated a combined net profit of roughly RMB10.21 billion (US$1.64 billion) for 2012, with China Southern posting the weakest results. Chinese carriers have fared better than international rivals in recent years due to the growing domestic travel market and government support.