China Southern may report Q1 loss

[HONG KONG] China Southern Airlines Co, the nation's third-largest carrier, estimated a loss in the first quarter, compared with a profit in the same period last year, as a weaker yuan caused foreign-exchange losses.

The airline expects to report a loss of 300 million yuan (S$60 million) to 350 million yuan for the three months ended March 31, compared with a 57 million yuan profit during the same period in 2013, according to a statement to the Hong Kong stock exchange on Tuesday.

A slowing Chinese economy threatens to curb earnings for airlines, while a weaker yuan against the dollar increases the cost of servicing their foreign-currency debt.