According to its recent financial report, China Southern Airlines saw its net profits fall 48.22 percent in 2012 relative to the previous year, a decline which made it the least profitable of China's four top airlines during the period. The carrier largely pinned its sagging results on external factors such as weakening economic conditions and rising fuel costs.

But to a certain degree, the company has also created its own problems.

In 2011, China Southern invested in five Airbus A380 planes built to handle international routes. But with demand for international travel into and out of China Southern's base in Guangzhou still immature, these pricey assets have become little more than a millstone around its neck. Using these planes primarily on inexpensive domestic routes, the company is actually losing money after it factors in airport fees and maintenance costs. In fact, these new additions to its fleet had brought China Southern 400 million yuan ($65.08 million) in losses by the end of the first quarter - losses which could have been avoided if the carrier was more realistic about the market.

The author is Liu Liang, a commentator.