China National Aviation Co (CNAC) - whose main asset is a 43 per cent stake in Dragonair - has returned to profit posting net earnings of HK$211.97 million for the year to December 31. The company reported a HK$5.9 million net loss in the previous year after writing off HK$244.7 million for the diminution in its investment properties. Turnover fell 13.7 per cent to HK$48.26 million for the year. CNAC's main source of directly-earned revenue is from its business as a ticket sales agent for mainland airlines. Operating profit was HK$58.72 million, compared with an operating loss of HK$152.55 million in 1998. Dragonair contributed a large part of the HK$200.48 million income from associated companies, which was 2.4 per cent higher than in the previous year. Earnings per share were 6.55 HK cents, compared with a loss of 0.18 HK cent. A final dividend of 0.6 HK cent per share was proposed, compared with 0.4 HK cent per share. Dragonair's revenue increased 8.3 per cent year on year, while operating profit gained 4 per cent. The airline carried 2.3 million passengers last year, an increase of 13.3 per cent. Cargo revenues rose 52.9 per cent, while overall unit operating costs dropped 1.9 per cent from the year before, the company reported.