China's three major airlines all reported drops in pre-tax profits in 2005 as a result of high global oil prices and tough competition in the domestic market, reports China Business News.

An official with the Civil Aviation Administration of China (CAAC), who asked to remain anonymous, said the pre-tax profits of China Airlines fell 14.7 percent to 2.56 billion yuan last year, compared with 3 billion yuan in pre-tax profits in 2004.

The pre-tax profits of Shanghai-based China Eastern Airlines dropped 86.7 percent to 173 million yuan in 2005. The airline scored 1.3 billion yuan in pre-tax profits in 2004.

Meanwhile, the Guangdong-based China Southern Airlines reported pre-tax losses totaling 726 million yuan last year, the official said.

The total assets of the three airlines make up 80 percent of the country's civil aviation industry. .

Source: Xinhua