Shandong Aviation Group Co generated 389.08 million yuan ($63.2 million) in net profits last year, a 34 percent decline over 2012, according to its annual report issued on March 21.

The Jinan-based carrier attributed the sharp decline to cheaper airfares resulting from intensifying competition from high-speed rail and the continued global economic slowdown.

The company reported that its operating revenue rose 3.95 percent to 11.427 billion last year, while operating expenses increased 7.85 percent to 11.174 billion.

It delivered a total of 14.04 million passenger trips last year, up by 12.08 percent year-on-year. Its passenger load factor, which measures how well-filled its planes are, fell to 77.76 percent from 77.89 percent in 2012.

Its flight punctuality rate reached 78.17 percent, ranking third among all Chinese commercial flights.

By Wang Qian