China’s aviation in recession
China's economic growth eased more than market expectations in the second quarter, amid rising inflation, slowing exports and a strengthening currency. The slowing economy is yet another factor in a multi-faceted slowdown China’s airlines are experiencing this year, which carries significant implications for profitability this year, as we review in this Perspective. [1033 words]
Unlock the following content in this report:
- GDP slowing – air traffic shrinking
- Reasons behind the downturn
- Other emerging markets also slowing down
- Industry profits down by a quarter in Apr-Jun
- Conclusion: Share market right - turbulence ahead
Graphs and data:
- China's GDP vs total international and domestic air passenger numbers:
% change year-on-year: 1985 to 1H08
- Chinese carriers' total passenger number growth: Jan-08 to Jun-08
- Domestic passenger demand growth in Brazil, India, China and Russia:
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