China Southern Posts Profit as Yuan Masks Operating Loss
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China Southern Airlines Co., Asia’s biggest carrier by traffic, posted a first-half profit as gains from the yuan’s appreciation helped mask an operating loss caused by competition with bullet trains. The shares dropped.
The airline reaped a foreign-exchange gain of 1.5 billion yuan ($245 million) in the six months through June. The Guangzhou-based company’s profit missed estimates and was the worst in three years.