Air Transport

China Southern Airlines moved into the black in the third quarter, spurred on by a recovery in domestic traffic.

Net profits reached 284 million yuan ($42 million) in the three months ending 30 September, compared to a loss of 830 million the same period last year, says the airline.

The carrier attributes the profit to an increase in operating income and a decrease in operating costs.

Some carriers in recent months have posted profits due to gains on fuel hedging. This is recorded in non-operating income. But China Southern's non-operating income in the quarter was down 62% 130 million yuan due to a "reduction in government grants", it adds.

China Southern posted a 10% increase in passenger traffic in September, largely due to domestic traffic.