China’s three biggest airlines posted their first collective quarterly profit in a year in the third quarter on the back of the peak summer season, but the recovery could be fleeting as oversupply continues to drag down the domestic aviation market, reports Reuters. Flag carrier Air China reported on Thursday a third-quarter net profit of RMB 4.14 billion ($581.22 million), down 5.16% from last year.
The airline also announced plans for an A-share private placement to raise up to RMB 20 billion, aiming to repay debts and replenish capital, according to a stock exchange filing.
China Eastern, the launch customer for the home-grown C919 narrow-body jet, swung back to a profit of RMB 3.53 billion after three quarters of losses, compared with a profit of RMB 2.63 billion in the same period of last year. China Southern, which released results on Monday, booked a third-quarter profit of RMB 3.84 billion, versus RMB 3.19 billion the prior year.