Domestic airlines could face financial turbulence

Major Chinese airlines face a turbulent time with a weaker yuan trimming profits.

Even though the air traffic market is still strong, industry experts are predicting a bumpy ride ahead for the country's big three carriers.

"The three largest carriers in China could lose between 2 billion ($312 million) and 4 billion yuan each in net profit this year after the rate of the yuan (to the US dollar) dropped this year," Geoffrey Cheng, head of transportation and industrial research at BOCOM International, which is part of the Bank of Communications Co, said. "But this year's decline in fuel prices will help counteract the carriers' exchange loses."