China Aviation Oil (Singapore) Corp, which supplies a third of China's jet fuel, said full-year profit in 2003 rose 12.5 percent after demand from airlines rebounded in the third and fourth quarters.

　　Net income in the year ending December 31 rose to $54.3 million Singapore dollars (US$32 million) from S$48.2 million in 2002, the company said in a statement. Revenue rose 43.5 percent to S$2.43 billion, it said.

　　Severe acute respiratory syndrome "decimated Chinese domestic air travel and flights were dramatically curtailed" in the second quarter last year, said Chen Jiulin, the company's chief executive officer, in a statement to the Singapore stock exchange.

　　"The subsequent strong rebound in jet fuel demand" in the third and fourth quarters "more than offset the earlier fall," he said.

　　China's jet fuel use is rising because airlines resumed flights after the SARS outbreak subsided and the country is preparing for the 2008 Olympics in Beijing. An expanding economy is luring business travelers from overseas while rising household income is boosting domestic passenger numbers.

　　China Aviation Oil said on February 16 its jet fuel imports rose to a record in the first quarter because of increased air travel. The company bought 603,000 metric tons of fuel for delivery between January and March, exceeding its December estimate of 551,000 tons and marking a third consecutive quarterly record.

　　China Aviation shares fell on Friday, declining 3 Singapore cents, or 1.5 percent, to S$1.93.

　　(Bloomberg News)