Juneyao Air saw its operating profit for the third quarter fall 14.7% to CNY905 million ($129 million), on the back of higher costs.
Revenue for the three months ended 30 September rose 18.1% to CNY4.94 billion, but this was outpaced by costs, which grew nearly 20% to CNY4.13 billion.
Net profit for the period fell 19.5% to CNY657 million.
For the nine months ended 30 September, Juneyao also saw a similar decrease in operating profit. It recorded a 14.2% drop to CNY1.6 billion, compared to the CNY1.86 billion profit for the corresponding period last year.
Revenue grew 17% to CNY13 billion, while costs increased 20% to CNY11.7 billion.
The carrier ended the period with CNY2.4 billion in cash and cash equivalents, lower than the CNY3.1 billion it had the same period last year.
Juneyao, which is a Star Alliance connecting partner, did not provide a discussion on its third-quarter results.