CHINA: Chinese airlines’ 11 month profit triples

Chinese carriers enjoyed a bountiful 2007 as they collectively earned a profit of RMB17 billion (US$2.3 billion) in the first 11 months of last year, more than triple the RMB5.5 billion posted in the same period of 2006, newly appointed Civil Aviation Authority of China (CAAC) Minister Li Jiaxiangsaid recently. Li credited yuan appreciation and […]


Chinese carriers enjoyed a bountiful 2007 as they collectively earned a profit of RMB17 billion (US$2.3 billion) in the first 11 months of last year, more than triple the RMB5.5 billion posted in the same period of 2006, newly appointed Civil Aviation Authority of China (CAAC) Minister Li Jiaxiangsaid recently.

Li credited yuan appreciation and fuel surcharges for the result but warned that, “Chinese carriers still posted a collective loss if these two main contributors are excluded.”

Passenger numbers are expected to increase nearly 16 per cent to 185 million passengers for the full year 2007, while cargo traffic measured in RTKs should rise slightly over 13 per cent to 3.96 million according to CAAC. The authority is also forecasting a 14 per cent rise in passenger boardings for 2008, reaching 210 million passengers, while cargo traffic will grow 12 per cent to 4.45 million RTKs.

The CAAC said it will continue with its policy of slowing commercial aviation’s rapid development out of concern that the industry is “overheated.” It will accomplish this through tighter control of aircraft deliveries and its commitment to suspend the approval of new airlines until 2010.

“Chinese carriers are not allowed to introduce new aircraft if the ratio between the number of cabin crew and an aircraft doesn’t meet the standard as required,” said Li.