China Eastern Airlines Corp, the nation's No. 3 carrier by sales, said third-quarter profit fell 27 percent, as higher fuel costs eroded gains from higher passenger numbers and increased fuel surcharges.

Net income fell to 491.5 million Yuan (US$61 million), or 0.10 Yuan per share, in the three months ended September 30, compared with 673.2 million Yuan, or 0.14 Yuan, a year earlier, the Shanghai-based carrier said in a statement, using Chinese accounting standards. Sales rose 25 percent to 10.34 billion Yuan.

China Eastern and other carriers in the country are struggling to translate greater passenger loads into higher profits. Government regulations have limited increases in surcharges, preventing airlines from passing all of their higher fuel costs onto passengers.

The carrier made a loss of 970.2 million Yuan in the first nine months of the year, against a profit of 262.7 million Yuan a year earlier, it said.

The government raised the ex-factory price of jet fuel twice in the first half, following increases in the global market. Jet kerosene traded at an average US$82.43 a barrel in Singapore in the first nine months, 23 percent higher than a year earlier, according to data compiled by Bloomberg. Chinese airlines are barred from hedging fuel for domestic flights. Carriers won approval to double the surcharge on domestic flights of less than 800 kilometers to 60 Yuan each way from September 1. The levy on domestic flights of more than 800 kilometers rose to 100 Yuan each way from 60 Yuan the same day.

China Eastern said it flew 9.5 million passengers in the three months ended September, an increase of 19 percent. It filled 74.7 percent of seats, up from 73.7 percent.

In the first nine months of the year, China Eastern's passenger numbers rose 57 percent to 26.3 million, it said on October 17. The airline filled 72 percent of seats with paying passengers during the period, up from 68.7 percent, it added.

Source:佚名