The wide-ranging plan would save the nation's largest carrier by fleet size 1.3 billion yuan (190.3 million dollars) this year, it said in a statement.

China Southern also plans to cut costs by reducing spending and fuel usage, it said.

"Southern Airlines has told all of its employees to adopt the mindset of 'going through tough days'," the statement issued late Thursday said.

The pay cuts would affect all management staff and would take effect this month, the airline said. The company did not say how long they would last.

China Southern expects its fuel costs to rise by 1.9 billion yuan this year, after taking into account passenger fuel surcharges, which the government increased this month.

Domestic fuel prices have risen nearly fourfold since 2005 to around 8,720 yuan per tonne, it said.

China Southern also said domestic travel demand has declined due to the slowing global economy and belt tightening within China.

In June, the airline carried 4.2 million passengers, down 3.3 percent on last year, mostly due to a fall in international and Hong Kong traffic, Dow Jones Newswires reported.

China's two other leading carriers -- Air China and China Eastern Airlines -- also reported falling passenger numbers and freight volume last month.

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