China Southern Airlines returns to the black, favourable outlook

China Southern Airlines staged a solid turnaround in profitability in 2009 on the back of a recovery in domestic demand and considerable government support. However, yields (particularly in international markets) remained under severe pressure and many non-fuel cost lines rose. The airline reported an operating profit of USD210.9 million in the 12 months to 31-Dec-2009, compared to a loss of USD827 million in the previous corresponding period, despite a 0.9% reduction in revenue, to USD8,027 million.