Feb. 17, 2009 (China Knowledge) - Shenzhen Airlines, China's fifth largest airline group, posted RMB 26 million in profits last year despite the weak demand amid the global financial crisis, sources reported.

Total income of the carrier hit RMB 13.07 billion for 2008, up 26.4% from a year earlier.

The Shenzhen-based airline carried 1.207 million passengers last year, up 24.1% year on year. The cargo volume also increased 10.3% year on year to hit 279,700 tons in 2008.

The air carrier attributed the earnings to cost cuts and tight financial management. Meanwhile, the company has been working on the business expansion in recent years.

Earlier this year, Kunming Airlines, in which Shenzhen Airlines owns a 80% stake, started operation. The newly established airline is expected to help Shenzhen Airlines to expand presence in Southwest China.

Major domestic airlines, including China Southern Airlines Co<600029><1055><ZNH>, Air China Ltd<601111><753>, Shanghai Airlines Co Ltd<600591> and China Eastern Airlines Corp Ltd<600115><670><CEA>, all reported losses on weak demand and fuel hedging contracts.