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.
Source: Air Transport Intelligence news
