China Southern Airlines said Monday net profit for the first half of 2013 was down 19 percent from a year earlier due to a slowdown in domestic demand.

Net profit ending June 30 was 344 million yuan ($55.8 million), down from 424 million yuan last year and lower than a forecast by six analysts cited by Dow Jones Newswires of 405 million yuan.

The Guangzhou-based carrier’s revenue fell 1.6 percent to 46.21 billion yuan from 46.95 billion despite an increase of 6.3 percent in total passengers carried to 43.80 million.

The company cited a slow-down in demand for air travel, as well as increasing competition from carriers and high-speed rail for the drops.

The firm, which is listed in both Shanghai and Hong Kong, closed up 0.69 percent at HK$2.92 on the Hang Seng Index before the report was released.

SOURCE AFP