It's still too soon to tell what effect the slump in the international aviation market will have on China's civil aviation industry.

So far, the outlook for China remains bright.

A report from the General Administration of Civil Aviation of China (CAAC) found that more than 1.6 million passengers flew during the week-long National Day holidays last week - 100,000 more people than the same time last year.

Domestic airlines added hundreds of special planes to serve hot tourist destinations.

Profitable income from the traveling peak means the aviation industry will enjoy positive finances in October, industry insiders said. But no one knows whether the profits will continue in the months ahead.

In the first half of this year, a traditional low season for aviation, China's airlines lost more than 2 billion yuan (US$240 million).

The world air transport industry is in a crisis after the September 11 terrorist attacks on New York and Washington DC.

"Airlines have slashed operations and reduced staff and are facing heightened security and insurance costs," a report from the International Air Transport Association said in response to the current world aviation situation.

Wang Yongtao, a market research expert with Beijing-based Air China, said the sluggish world aviation market will greatly affect China's international flights, while the fate of domestic air routes will largely depend on China's economic situation.

"Since the United States holds nearly half of the world's aviation market, its problems will cast a fairly negative impact on the aviation industry worldwide," Wang said.

But of all the countries, China may be least affected, he said.

"International flights account for only a small part of the traffic in China, so as long as the domestic market continues to develop well, the whole industry will not be severely affected," he said.

An official with CAAC agreed with Wang, saying the domestic market demand is the most important impetus for developing China's aviation industry.

"The 1.3 billion people of our country will always be the best resources for domestic airlines," the official said.

He said that CAAC may adopt positive policies - like partly lifting the ban on ticket discounts, as an incentive for more people to fly.

Wang said Air China's most profitable international air destinations - Japan, the Republic of Korea and Southeast Asia - have not yet been greatly affected by the US tragedy.