It has been forwarded by Air China, the national carrier, that it saw its net profit increasing more than twofold in the first half of the year, the credit of which goes to lower fuel prices, fuel hedging gains, and improving domestic travel demand.

In the first six months of 2009, the carrier posted a net profit of 2.9 billion yuan (424.5 million dollars), more than two times the 1.2 billion yuan net profit a year earlier.

"Air China, which was operating a fleet of 255 planes as of the end of June, said its costs for the first half fell 16 percent year-on-year to 21.8 billion yuan, mainly because fuel prices had dropped 42.5 percent to 6.1 billion yuan," said a statement filed late Tuesday with the Shanghai Stock Exchange.

In 2008, heavy losses were suffered by the carrier because of the bad bets on fuel hedging contracts. Furthermore, shrinking travel demand, also booked a fuel hedging gain of 1.5 billion yuan, after oil jumped 57 percent in the first half.

The airline clarified, "Slumping demand for international air travel, due to the gloomy global economic outlook and fears over swine flu, was partially offset by better-than- expected domestic demand in the first half."

The continuing global financial crisis and the outbreak of the Influenza A (H1N1) in the first half of 2009 brought enormous difficulties for the aviation industry, as well as Air China.