The Recovery of China’s Domestic Aviation Industry Becomes Clear Gradually

Aviation industry, as the barometer of the national economy, sets to recover in the wake of the gradual rejuvenation of the whole economy. The profits gained in the first three quarters of 2009 was 9.21 billions Yuan, a year-on-year increase of 9.68 billions, reducing the deficits. The airlines showed a net profit of RMB 6.13 billions in the 1st 3 quarters, a loss-reduction increase of RMB 11.68 billions on the year-on-year basis. The gross profit rates of the 5 listed airlines in the first three quarters all hiked compared to the same period last year, for instance, the gross profit rate of Air China reached 17%, a year-on-year increase of 8.9%. The passenger turnover volume was back to a 2-digit rate to 16.4%. The recovered passenger rate, the raised ticket price range and the relative lower price of gasoline all contributed to a better operating environment for airlines. The monthly data showed China’s passenger transportation market recovered since September, 2008, and positive growth was happened in October. A positive growth on cargo transportation was seen in luly since the rebounce in February, 2009. Within the 1st fthree quarters of 2009, there was a distinctive 22.6% year-on-year increase on our domestic passenger volume. In the perspective of international and regional markets, the situation clearly turned better in the last two months. The passenger volume for international flights returned a positive growth since July, and an increased growth rate of 17.4% for August and 14% for September were found. Furthermore, the growth rate for regional flights in the last two months reached 16.9% and 12.4% respectively. As the global economy bottoms and rebounces and China’s economy grows steadily, a 15% growth rate is expected in the whole passengerr transportation market next year.