China Southern Airlines 2014 net profit drops 10.55%

China Southern Airlines' net profit dropped 10.55 percent year-on-year in 2014, hit by slowing growth in the Chinese economy and global aviation accidents, it said. Net profit for 2014 was 1.78 billion yuan ($292 million), down from 1.99 billion yuan in 2013, the company said late Monday in a statement to the Hong Kong stock exchange, where it is listed. The airline, one of China's "Big Three" carriers, said aviation accidents overseas had hurt air travel demand and also cited competition at home. China's economy expanded an annual 7.4 percent last year, the slowest in nearly a quarter of a century. Fast-growing budget airlines and an expanding high-speed rail network in China have posed challenges for established players such as China Southern Airlines, analysts say. Still, the airline carried 101 million passengers last year, up 9.9 percent from 2013, the statement said, adding that operating revenue for 2014 rose 10.18 percent to 108.58 billion yuan. "Looking ahead to 2015... (the) domestic economy will remain stable, but with higher downward pressure. It will be difficult for the entire industry to sustain continuous rapid growth," the airline said. On Tuesday afternoon, China Southern shares were down 0.19 percent in Hong Kong and 3.78 percent lower in Shanghai, where it is also listed. China Southern Airlines performed worse last year than some competitors. Air China said last week that net profit rose 14 percent to 3.78 billion yuan in 2014, while China Eastern Airlines also said last week net profit rose 44 percent to 3.4 billion yuan.