Loading

As China's economic growth slows, its airlines maintain optimistic to bullish growth

Analysis

Even though China's economic growth in the second quarter slowed from 9.6% in 2011 to 7.6% in 2012, Chinese carriers are maintaining an optimistic to bullish growth forecast as they take, like many companies and government initiatives in China, a long-term view of their potential. That outlook calls for growth in the short-term to raise brand awareness, especially internationally, and increase travel propensity, which has economic flow-on affects. When economic times are right, and the carriers are sophisticated enough to do so, there will be a sizeable market to profit from.

The implications of that in the short-term are the recent warnings by Air China, China Eastern and China Southern, the country's three biggest carriers, of 1H2012 profits declining by over 50%. In a positive outlook, Jun-2012 profits are up following a decrease in fuel prices. Both carriers recently announced plans to collectively take 30 widebody Boeing 777-300ER aircraft and, amongst other Chinese carriers, are pursuing short- and long-haul international expansion. Already in 1H2012 Chinese carriers transported 8.7% more passengers than in 1H2011.

Read More

This CAPA Analysis Report is 1,861 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More