Economy

Markets

Industries

Insights

Reports

Events

Air traffic continues slump in November

By Lu Haoting (chinadaily.com.cn)
Updated: 2008-12-17 14:01

Chinese airlines saw their traffic slump continue in November due to the deteriorating global economy and the traditional air transport lull that occurs in this month.

Air China's passenger traffic, measured by revenue passenger kilometers (RPK), dropped 7.8 percent compared with October, while China Eastern Airlines' decreased 8.3 percent and China Southern Airlines' slumped 8.8 percent during the period.

Related readings:  Chinese airlines 'thriving' as members of Star Alliance  Carriers mull ways to trim excess flab  Airlines come down to earth as recession bites  China Southern's parent gets 3b yuan govt funding

The airlines are still suffering from falling international traffic demand. International passenger traffic for Air China, the country's flagship carrier which boasts the largest international air network among its Chinese peers, dropped 5.5 percent year-on-year. China Southern's traffic on international routes decreased 19.6 percent year-on-year.

China's exports dropped 2.2 percent year-on-year in November, the first monthly decline in seven years while its imports declined 17.9 percent. Subsequently, Airlines' cargo traffic also diminished.

Cargo traffic for Air China dropped 12.1 percent in November compared with the same period of last year. China Southern's cargo traffic decreased 18.9 percent year-on-year, while China Eastern's plunged 22.2 percent.

But domestic air transport is showing signs of recovery. Air China's passenger traffic on domestic routes increased 9.4 percent year-on-year in November.

Guangzhou-based China Southern, the country's largest carrier by fleet numbers, saw its domestic passenger traffic grow 8.2 percent over the same period of last year. Shanghai-based China Eastern's domestic passenger traffic increased 6.8 percent year-on-year.

"I believe the domestic air transport market will see improvements next year while international traffic continues to fall," said Li Lei, an aviation analyst with CITIC China Securities.

The Chinese government recently announced massive stimulus plans to spur the economy by investing heavily in a wide array of infrastructure and social welfare projects, which is expected to have a knock on effect on other economic activities and boost demand for domestic air travel.