Key mainland airlines warn on first-half profits

The three major Chinese airlines - Air China, China Southern and China Eastern - have forecast a sharp decline in profits in the first half of year amid the country's economic slowdown.

Air China Ltd, the world's second-biggest carrier by market value, said first-half profits may decrease more than 50 percent due to sluggish travel demand and higher fuel costs.

The carrier, which had a net profit of 4.06 billion yuan ($637 million) in the first half of 2011, attributed the drop to the demand slowdown in China's aviation market, ongoing depressed demand in the international market and the increase of jet fuel prices.