China News Highlights, 12 August 2025: Hong Kong police superintendent sentenced to community service for DUI and assault

A Hong Kong police superintendent has been sentenced to 240 hours of community service and had his driving licence suspended for six months after being found guilty of operating a vehicle under the influence of alcohol and biting a colleague who attempted to intervene, as per a report in South China Morning Post. A District Court judge noted on Tuesday that the officer's career had been 'destroyed' by the trial and that the media attention had caused his family to face 'discrimination and ridicule'.

Taiwanese leader William Lai Ching-te is experiencing the sharpest drop in his public approval rating, with three recent surveys indicating a significant decline in support, the South China Morning Post said in a report. The falling numbers, which extend even to his traditional southern power base of Tainan, are viewed as a reflection of public dissatisfaction. This trend poses potential challenges for his ruling Democratic Progressive Party in the 2026 local elections and the 2028 presidential race, and may be interpreted by Beijing as a sign of weakening public backing for the administration's cross-strait policies.

Hong Kong's Drainage Services Department has purchased three more robotic "water-pumping dragon" machines to bolster its flood-fighting resources, according to a report in the South China Morning Post. Each device cost HK$1 million (US$127,390) and is expected to be operational later this week. The acquisition brings the department's total to nine such machines, with existing units having already been deployed for 500 hours since the start of this year's rainy season.

Chinese researchers are studying electronic warfare tactics by examining Russia's jamming of satellite navigation systems during its 2022 invasion of Ukraine, according to a report in the South China Morning Post. The jamming initially targeted civilian systems before expanding to military bands within two weeks, affecting all major satellite navigation networks in the war zone. The affected systems included the US GPS, the European Union’s Galileo, China’s Beidou, and Russia's own Glonass, prompting a counter-jamming mission from Western powers led by the United States.

Hong Kong's examination authority has stated that the performance of local students in the DSE university entrance exams has not been negatively affected by an increasing number of private candidates, according to a report in the South China Morning Post. This defense comes amid a substantial growth in mainland Chinese participants, with the eligibility of some being questioned. In response to the situation, local lawmakers are advocating for more stringent regulations governing the collaboration between Hong Kong's private secondary schools and mainland Chinese educational entities.

Hong Kong authorities will explore using a biological control strategy deployed in mainland China to manage an outbreak of chikungunya fever, the South China Morning Post said in a report. Following the recording of another imported case on Tuesday, Secretary for Environment and Ecology Tse Chin-wan told lawmakers that the government planned to test this "mosquito-eat-mosquito" approach to curb the virus's spread. The method involves using specifically bred mosquitoes to suppress the local disease-carrying mosquito population.

The US State Department's annual review of China's human rights record was released on Tuesday in a pared-back format as part of a broader restructuring of its country reports, according to a report in the South China Morning Post. Despite the shorter length, the assessment retained its most politically sensitive criticisms of Beijing's conduct. The report's executive summary states that "genocide and crimes against humanity occurred during the year in China against predominantly Muslim Uygurs and members of other ethnic and religious minority groups in Xinjiang."

The US Coast Guard is actively monitoring a fleet of Chinese icebreakers and research vessels operating in the Arctic region near Alaska, according to a report in The Washington Times. The presence of the fleet is described as an unprecedented move for China, which has previously designated itself a "near Arctic state" to justify its interests in the region. The monitoring operation highlights the increased Chinese activity in the strategically significant Arctic.

A senior leader in the US House of Representatives has accused General Motors of collaborating with a Chinese military-affiliated company for its vehicle batteries, The Washington Times said in a report. The lawmaker alleges that the same Chinese firm supplying batteries to GM also provides batteries that are used in the submarines of the People's Liberation Army. The accusation highlights concerns over US corporations' supply chain links to entities connected with China's military.

Hong Kong police have launched an investigation into a driver for a mainland Chinese ride-hailing platform following a report that the individual was working without a Hong Kong identity card, according to a report in the South China Morning Post. The probe into suspected illegal passenger services was initiated after a passenger reported the incident. Hong Kong's Immigration Department has also expressed concerns regarding potential illegal employment activities connected to the case.

Paraguayan government ministers outlined a proposed assembly law to lawmakers on Tuesday that would permit companies to manufacture electronic and digital goods locally with imported components, many of which would come from China, according to a report in the South China Morning Post. Economy Minister Carlos Fernandez Valdovinos and Industry and Commerce Minister Javier Gimenez presented the measure during a Senate hearing. The proposal comes as Paraguay engages in a growing political debate over potentially ending its long-standing diplomatic relations with Taiwan in favor of establishing ties with Beijing, and is framed within the context of the ongoing US-China tariff disputes.

The Italian government, led by Prime Minister Giorgia Meloni, is considering plans to reduce the holdings of Chinese investors in the country's strategic companies, according to a report in Bloomberg. This potential move is reportedly aimed at avoiding diplomatic friction with the United States, which has encouraged allies to limit China's economic influence in critical sectors. This consideration follows Italy's formal withdrawal from China's Belt and Road Initiative in December 2023, signaling a continued strategic shift in its policy towards Beijing.

A documentary film titled "Food Delivery," which chronicles the hazardous lives of Filipino fishermen and soldiers in the South China Sea, is scheduled to open in Philippine cinemas this Wednesday, according to a report in the South China Morning Post. The film's release proceeds despite condemnation from the Chinese government, which had previously denounced the documentary as being "rife with disinformation and false propaganda." Last month, the Chinese consulate-general in Auckland called for a New Zealand film festival to cancel its screening, labeling the movie a "political tool."

Philippine President Ferdinand Marcos Jnr has confirmed Manila intends to push for a finalized and legally binding code of conduct (COC) for the South China Sea during its chairmanship of ASEAN in 2026, the South China Morning Post said in a report. In a recent interview, Marcos Jnr stated his administration would "certainly try" to achieve this outcome, emphasizing the urgency of a binding agreement to manage the long-standing maritime dispute with China and maintain regional stability. The initiative aims to advance negotiations that have been ongoing for over two decades to create an enforceable framework for the disputed waters.

Hong Kong lawmakers are urging transport authorities to implement cheaper tolls for the new Central Kowloon Bypass before it opens, arguing the move would improve the road's utilization and alleviate congestion in nearby areas, the South China Morning Post said in a report. In response, Undersecretary for Transport and Logistics Liu Chun-san stated on Tuesday that while the government would review traffic flow, lower tolls could hinder its ability to recoup the significant operational costs of the new infrastructure.

A poll by Hong Kong's Equal Opportunities Commission found that about 90% of human resources staff report their organizations have not established formal policies or guidelines to help employees balance work and family responsibilities, according to a report in the South China Morning Post. Following the findings, the commission on Tuesday urged employers to create written policies and implement more flexible work arrangements, such as during inclement weather. The watchdog also called on the government to introduce additional measures to support the creation of more family-friendly workplaces.

US chipmaker Micron Technology has initiated a new round of layoffs in China, affecting hundreds of jobs, as it exits the mobile NAND memory market globally, South China Morning Post said in a report. The company, which has offices in Shanghai, Shenzhen, and Xian, cited "continued weakness in the mobile NAND market" as the reason for halting its global development in that segment. The move is part of a broader global retreat by the US-based company from this specific area of the memory chip business.

China has announced it will implement a temporary duty of 75.8 percent on Canadian canola imports, with the measure set to take effect this Thursday, Al Jazeera said in a report. The move represents a significant escalation in trade tensions between the two nations. This action follows a period of strained diplomatic relations, notably linked to the 2018 arrest of Huawei CFO Meng Wanzhou in Canada, and previous Chinese restrictions on other Canadian agricultural products like pork and beef.

US consumer inflation was unchanged in July, with the impact from tariffs on Chinese goods described as 'mild' and offset by lower costs for gas and groceries, according to a report in AP. The Labor Department reported that consumer prices rose 2.7% from a year earlier, the same as in June. The tariffs referenced are part of ongoing trade measures against China largely implemented during Donald Trump's first presidential term and maintained throughout the administration of former President Joe Biden, affecting the cost of imported goods.

The United States will receive a 15% cut from sales of Nvidia and AMD chips to China as part of a new and unusual agreement, as per a report in AP. This development marks a novel approach in the ongoing tech competition between the two countries, moving beyond typical export controls to a model that appears to involve revenue sharing on approved sales of advanced semiconductors.

Distinguished cancer expert Feng Gensheng has returned to China after 40 years in North America, most of which were spent in the United States, according to a report in the South China Morning Post. Feng, who was promoted to distinguished professor at the University of California, San Diego (UCSD) earlier this year, has joined the Shenzhen Bay Laboratory (SZBL). At the research platform, which was established by Guangdong province and the city of Shenzhen, Feng will serve as the director of the Cancer Research Institute.

The daily delivery volume for Alibaba Group Holding's on-demand service briefly surpassed its rival Meituan last week, fueled by a subsidy campaign offering free drinks to customers, the South China Morning Post said in a report. This development occurred amid what is described as cutthroat competition within China's delivery industry. Orders on Alibaba's Taobao Shangou channel reportedly overtook Meituan's on Friday and Saturday, following a Thursday where its volume of 100 million orders was still 20 million behind Meituan.

China's Ministry of Commerce has launched an anti-dumping investigation into pea starch imported from Canada, a move reported as a retaliatory measure against Canadian tariffs on Chinese steel, according to a report in the South China Morning Post. The probe was initiated following a request from China's domestic industry, which presented preliminary evidence showing a significant increase in dumped Canadian pea starch. According to the ministry, the imported products are being sold at prices below domestic equivalents, causing financial losses and difficulties for the Chinese industry.

A man in eastern China, identified as Jin, has filed a lawsuit against Ranyan Gym in Hangzhou after its management allegedly fled with his money, according to a report in the South China Morning Post. Jin paid the gym more than 870,000 yuan (US$120,000) for memberships and coaching sessions intended to last 300 years. He has reportedly provided 26 contracts signed with the gym as evidence and has also contacted a local television station to bring attention to the case.

Tesla has begun offering a longer-range variant of its Model 3 in China as it aims to regain market share from local competitors in the country's electric vehicle market, according to a report in the South China Morning Post. The US automaker announced on Tuesday that the new model, which has a driving range of 830km, is priced at 269,500 yuan (US$37,492). This represents a 14 percent price increase compared to the basic edition, which offers a 634km range.

Assets worth $255 million, including artwork, have been recovered from the defaulted Chinese property developer Evergrande, a sum that is less than 1% of the company's total holdings at the time of its collapse, as per a report in the Financial Times. The recovery is part of the ongoing liquidation process following a Hong Kong court's winding-up order against the company in January 2024. This development occurs in the context of Evergrande's total liabilities, which were estimated to be over $300 billion, highlighting the significant shortfall for creditors.

China's total investment in its semiconductor industry was 455 billion yuan (US$63.3 billion) in the first half of 2024, a 9.8% decrease from the previous year, according to a report in the South China Morning Post. Despite the overall drop, investment into semiconductor equipment saw a significant surge of more than 53% during the same period. The report, from research firm Cinno, notes that this shift reflects China's strategic push to build a self-sufficient supply chain, with wafer manufacturing receiving the largest portion of total investment at 51%.

Chinese authorities have rejected US-based OpenAI's trademark application for its new AI model, GPT-5, according to a report in the South China Morning Post. The application, filed by the company's subsidiary OpenAI OpCo, was denied by the Trademark Office, which operates under the China National Intellectual Property Administration. Official records indicate the decision is currently pending appeal. The move occurs while OpenAI's products and services, such as ChatGPT, are not officially available in mainland China.

US President Donald Trump has urged China to increase its purchases of American soybeans, with the call coming as a deadline for a trade truce approaches, according to a report in the Financial Times. The push addresses the significant impact high Chinese tariffs have had on US farmers, who have seen a crucial export market threatened by the ongoing trade dispute between the two countries.

A survey of 97 needy residents in Hong Kong found that approximately 65% have never used government-provided heat shelters, citing their remote locations and a lack of privacy as primary deterrents, according to a report in the South China Morning Post. The survey, conducted by advocacy groups Greenpeace Hong Kong and ImpactHK, also highlighted users' hopes for improved privacy within the facilities. In response to the findings, the organizations have called on the government to increase the number of shelters, particularly in areas with low-income populations, and to enhance the services offered.

Italian orienteering athlete Mattia Debertolis has died in a hospital after competing at the World Games in Chengdu, China, according to a report in Reuters. Organizers announced on Tuesday that Debertolis was rushed to the hospital after being found unconscious during the men's middle-distance competition last Friday. He passed away despite receiving what organizers described as immediate medical care at a leading Chinese medical institution.

Two European companies are using Hong Kong as a base of operations to expand into mainland China and the wider Asian region, according to a report in the South China Morning Post. Italian-owned food importer and distributor Bright View and French fintech firm Libertify are both leveraging their presence in the city to access regional markets.

Chinese artificial intelligence and gaming company CreateAI has acquired the global rights to the works of acclaimed Hong Kong author Louis Cha (Jin Yong) and plans to develop a major new video game, according to a report in the South China Morning Post. The company, which was formerly the autonomous vehicle firm TuSimple, aims to create 'Heroes of Jin Yong,' which it describes as one of the market's largest-scale, open-world, triple-A role-playing games (RPGs). CreateAI's president and CEO, Lu Cheng, stated the company's ambition is to turn the beloved martial arts stories into a blockbuster title.

Hong Kong's stock market traded sideways while mainland Chinese markets saw gains on Tuesday, as investors focused on upcoming economic data and corporate earnings, according to a report in the South China Morning Post. The Hang Seng Index closed 0.3% higher at 24,969.68, while the Hang Seng Tech Index fell 0.4%. In mainland China, both the CSI 300 Index and the Shanghai Composite Index recorded gains of 0.5%. Among individual stocks, car dealer Zhongsheng Group increased by 4% and Semiconductor Manufacturing International (SMIC) advanced by 5%.

Hong Kong developer Wharf (Holdings) swung to a profit in the first half of 2025, supported by a recovery in the city’s luxury housing market that counteracted weaker performance in its mainland China business, the South China Morning Post said in a report. According to a stock exchange filing, the company posted a profit of HK$535 million (US$68.2 million), a significant reversal from the HK$2.64 billion loss recorded in the same period a year earlier. The positive result was also aided by lower borrowing costs.

Hong Kong's super luxury property market has experienced a significant shift in ownership, with wealthy buyers from mainland China now dominating high-value transactions, according to a report in the South China Morning Post. In the last 19 months, the market saw 35 deals worth a combined HK$23 billion (US$2.93 billion). Mainland Chinese buyers were behind 80% of the transactions valued at HK$300 million or more, signaling a move of ownership from local Hong Kong tycoons to mainland elites who have amassed wealth in high-growth industries.

Australian metals giant Fortescue has secured a record 14.2 billion yuan (US$1.98 billion) syndicated loan in a landmark deal for the internationalization of China's currency, South China Morning Post said in a report. Arranged by the state-owned Bank of China, the agreement is the largest-ever offshore yuan loan to a non-Chinese company and the first such syndicated loan to an Australian firm. The transaction is a significant step in China's strategy to promote the global use of the yuan for trade and finance.

China has accused the United States of using 'lies as a pretext for seeking control' of the Panama Canal during a clash at a United Nations session, according to a report in the South China Morning Post. Fu Cong, China’s ambassador to the UN, stated that his country has always respected the canal's permanent neutrality and supports Panama's sovereignty over the waterway. In the same session, China also accused Washington of being 'the biggest disrupter of peace and stability' in the South China Sea.

Authorities in southern China have put a stop to a new trend where children were helping food couriers with deliveries in Shenzhen's Huaqiangbei electronics market, according to a report in the South China Morning Post. The practice emerged during the summer holidays, with children operating as informal gig workers, wearing payment QR codes around their necks and competing for jobs to help delivery riders carry orders and locate customers. The intervention by authorities was prompted by safety concerns related to the children's involvement in this unregulated work.

A man in the United States faces potential jail time for attempting to ship 850 turtles to Hong Kong by packing them in socks, according to a report in BBC. The US Justice Department stated that the illicit shipment was concealed in boxes that were deliberately mislabeled as plastic toys in an attempt to evade detection.

Innovators from Hong Kong achieved a record-breaking success at the 11th Silicon Valley International Invention Festival, securing a total of 51 awards, the South China Morning Post said in a report. The awards included 27 gold medals, 16 silver, and eight special prizes from the event held last week in Santa Clara, California. Lingnan University's innovation team was the biggest winner from the Hong Kong delegation in its first appearance at the festival, earning 13 awards for inventions in fields such as artificial intelligence and smart manufacturing.

An artificial intelligence startup, Manus, has reportedly drawn criticism from Beijing after its decision to cease operations in China, as per a report in the Financial Times. Concurrently, the company's Silicon Valley-based backer, venture capital firm Benchmark, has come under scrutiny from Washington. The situation underscores the growing geopolitical tensions between the US and China over the development and control of advanced technologies, particularly in the AI sector, forcing companies to navigate complex pressures from both governments.

China has deployed its first "robot antelope" in the Tibet region, designed to blend in with real herds for surveillance purposes, according to a report in Reuters. The robotic animal, which is integrated with 5G and AI technologies, is described as nearly indistinguishable from a real antelope with its doe-like eyes and brown fur. This deployment represents an expansion of Beijing's surveillance capabilities into the country's most remote areas.

Italian athlete Mattia Debertolis has died after collapsing during an orienteering event at the World Games currently being held in China, according to a report in BBC. The incident occurred during the competition, leading to the athlete's death.

In a new arrangement with President Donald Trump, U.S. technology companies Nvidia and AMD are expected to give 15 percent of their revenue from AI chip sales in China to the U.S. government, according to a report in The New York Times. The development is described as a highly unusual measure impacting the sale of critical technology components to China by the two leading American chip designers.

A number of unemployed young adults in China are paying to use shared office spaces simply to pretend they have a job, according to a report in BBC. This trend is a response to high youth unemployment and the immense social and familial pressure to maintain "face" and appear successful. The situation is exacerbated by a broader economic slowdown, weak domestic consumption, and the lingering effects of past government regulatory crackdowns on the technology and private education sectors, which were major employers of recent graduates. This coping mechanism highlights the psychological distress and disillusionment among some educated youth facing a difficult job market, a situation underscored by the government's suspension of detailed youth unemployment data in 2023 after it reached a record high.

U.S. President Donald Trump signed an executive order that will extend the suspension of tariffs on China for another 90 days, as per a report in Reuters. The current tariff pause was set to expire at 12:01 a.m. Eastern Daylight Time before the extension was enacted.

US cuts to international wildlife conservation aid are being exploited by transnational criminal organizations, including Chinese triads and Mexican cartels, who are expanding their illicit trafficking operations, according to a report in the Financial Times. The closure of conservation programs and anti-poaching initiatives, which were previously supported by US funding, has reportedly created a vacuum in enforcement and prevention. This allows these criminal syndicates to more easily traffic endangered animals by leveraging their existing smuggling networks with a lower risk of being caught.

Volkswagen-owned truck maker Scania plans to export half of the vehicles produced at its new €2 billion plant in China, according to a report in the Financial Times. The move is part of the company's strategy to utilize China's advanced manufacturing technology and scale to compete in a global market increasingly influenced by Chinese-made vehicles. The significant investment underscores a deep, long-term commitment to its Chinese production base for supplying global markets, not just for domestic consumption.

China's 1,500-year-old Shaolin Temple, known as the cradle of kung fu and Zen Buddhism, is embroiled in a scandal involving its long-time abbot, Shi Yongxin, who is being investigated for alleged financial offenses and sexual misconduct, as per a report in the South China Morning Post. The investigation into the celebrity abbot, sometimes called the 'CEO monk' due to the temple's extensive commercialization, has raised concerns about the management of religious sites. This high-profile case could prompt a significant review and potential overhaul of the governance and financial regulations for temples across China.

Ships carrying Chinese-made cars are continuing to use the Red Sea and Suez Canal to reach European markets, even as many other commercial vessels have rerouted around Africa to avoid potential attacks by the Houthi militia, according to a report in The New York Times. This decision allows Chinese automotive exporters to maintain a more direct shipping route compared to competitors who are taking the longer, safer journey due to the security risks in the region.

Chipmakers Nvidia and AMD have agreed to provide the US government with 15% of their revenue from advanced chips sold to China in return for export licenses to the market, according to a report in The Guardian. The agreement represents a conditional change to previous US national security restrictions on advanced chip sales to China, allowing the companies to resume certain exports under the new revenue-sharing terms.

China has accused organizers of an art exhibition in Thailand of distorting its policies on Tibet, Xinjiang, and Hong Kong, Reuters said in a report. The accusation came after the show's co-curator stated that some artworks were removed or altered at the request of Beijing. The Chinese government claims the exhibition, which opened on July 24, promoted what it terms 'fallacies' related to 'Tibetan independence', the 'East Turkestan Islamic Movement', and the situation in Hong Kong.

Liu Jianchao, a senior Chinese diplomat widely viewed as a potential future foreign minister, has reportedly been detained by authorities for questioning, according to a report in The Guardian that cited the Wall Street Journal. Liu was allegedly taken into custody in late July after returning to Beijing from an overseas work trip.

Brazilian President Luiz Inacio Lula da Silva and his Chinese counterpart Xi Jinping spoke for an hour by phone on Monday, discussing bilateral business opportunities and the role of the BRICS group of nations, as per a report in Reuters. According to a statement from the Brazilian presidency, both leaders affirmed their agreement on the importance of the G20 and BRICS in the defense of multilateralism.

Competition for subsidized university places in Hong Kong is set to increase significantly over the next five years, as more than 150,000 children born in the city to mainland Chinese parents become eligible to apply, according to a report in the South China Morning Post. These individuals were born before a 2013 policy change banned mainland women from giving birth in Hong Kong to secure residency for their children. Former Hong Kong leader Leung Chun-ying, who implemented the 2013 ban, commented on the situation, stating he had "no solution" to the potential strain on resources, as the children are legally entitled to apply for the subsidized university places as Hong Kong permanent residents.

A prominent Chinese economist and central bank adviser, Wang Yiming, has urged for government guidance to curb 'excessive cash burn' in the e-commerce sector without stifling overall competition, as per a report in the South China Morning Post. Wang stated that while fierce competition in the 'quick commerce' sector creates vital new consumption opportunities, regulators should focus on fostering sustainable business models to combat 'neijuan'—a term for intense, unproductive internal competition. He advocated for a balanced approach between regulatory oversight and promoting innovation to develop new economic growth drivers.

A former relationship manager at Standard Chartered Bank in Hong Kong, Leung Ho-yin, has pleaded guilty to two counts of conspiracy to defraud in a case involving over 400 million yen (US$2.7 million), as per a report in South China Morning Post. The plea comes after an investigation by Hong Kong’s Independent Commission Against Corruption (ICAC), which found that Leung helped a syndicate deceive Japanese investors into channeling funds into purported projects in Africa.

A former deputy US national security adviser and a retired American admiral have recommended that Taiwan restart its mothballed nuclear power plants to bolster its energy security, Bloomberg said in a report. The officials identified this as a key measure for the self-governed island to protect itself against potential threats from China.

HSBC has designated 73% of its commercial property loans in Hong Kong as high-risk, signaling significant financial pressure on Europe's largest lender, as per a report in the Financial Times. The reclassification is a response to a prolonged slump in the city's retail spending and sluggish demand for office space, highlighting growing concerns over the health of Hong Kong's commercial real estate market.

China's Wing Loong-2 (WL-2) unmanned aerial vehicle is being used in multiple international conflict zones by various nations, according to a report in the South China Morning Post. Countries including Nigeria, Saudi Arabia, Pakistan, and Libya have deployed the drone in military operations. Concurrently, a variant of the platform known as the GJ-2 is being utilized by China's military for live-fire exercises around Taiwan and for conducting patrols in the South China Sea.

China is advancing infrastructure projects to enhance its trade relationships in Southeast Asia, with work having already started on a significant expansion of the port in Muara, Brunei, according to a report in the South China Morning Post. The project, jointly operated by a state-owned Chinese company, aims to more than double the facility's capacity to 500,000 20-foot equivalent units (TEU). This development is part of a broader regional strategy by China as it navigates ongoing trade tensions with the United States.

Total electric vehicle sales in mainland China, including passenger cars and commercial vehicles, decreased by 5% from the prior month to 1.26 million units in July, according to a report in the South China Morning Post. The data from the government-backed China Association of Automobile Manufacturers (CAAM) marks the first such monthly decline for the industry. The sales dip follows a directive from Beijing for carmakers to limit discounts and focus on profitability rather than engaging in price wars.

Hong Kong's flag carrier, Cathay Pacific Airways, has offered a three-month voluntary unpaid leave scheme to its Hong Kong-based cabin crew for the fourth quarter of the year, according to a report in the South China Morning Post. This is the first time since the COVID-19 pandemic that the airline has offered unpaid leave for two consecutive quarters. The move, communicated via an internal memo, comes amid forecasts of modest profit growth for the airline.