Air China is gaining full ownership of Air China Cargo at a time when the freighter operator is barely making a profit.

Capital Airports has agreed to sell its 24% stake in Air China Cargo to Air China for 718 million yuan ($105 million), Air China says in a statement to the Hong Kong stock exchange.

This will increase Air China's stake to 100% from 76%, it adds.

The statement also says in 2008 Air China Cargo had an unaudited net profit of 41 million yuan from revenue of 7.07 billion yuan and this compared to a net profit of 540 million yuan in 2007.

In February ATI reported that Air China was negotiating to gain full ownership of Air China Cargo.

Air China is also working to establish a joint-venture cargo airline in Shanghai with Cathay Pacific Airways.

Source: Air Transport Intelligence news