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The growth in revenue for Chinese airlines outpaced rising expenses by more than eight percentage points last month, the industry regulator reported yesterday.

 

In a month in which passenger and cargo volume rose significantly, nine Chinese airlines, including China Eastern, Shanghai Airlines, Air China and China Southern, posted profits, the General Administration of Civil Aviation said, without providing figures.

 

Industry-wide revenue rose nearly 11 percent year on year in May to 21.1 billion yuan (US$2.77 billion), while expenses edged up 2.6 percent to 19.9 billion yuan.

 

"This year's fuel prices were much more stable than last year's," said Ji Lijun, an analyst at Shanghai Securities. "This, coupled with a growing demand for aviation services, is driving the good results."

 

The load factor for Chinese airlines rose 2.4 percentage points in May to 73.5 percent, according to the CAAC. Passenger volume rose 19.4 percent to 15.5 million, and cargo volume increased 16.1 percent to 306,000 tons.

 

CAAC said last year's entrance of Great Wall and Jade Cargo to the air-freight industry contributed to sustained growth in the sector.

 

The aviation authority, however, noted that while May's results represented a year-on-year increase, it fell short of the previous month's totals. The industry carried 134,000 more people and 29,000 more tons of goods in April.

 

The statement said this was due to "changing patterns" in seasonal demand. Tourists avoided the weeklong May Day holidays by traveling earlier.

 

As the Chinese economy continues its rapid growth, the CAAC expects passenger volume to rise 16 percent this year and cargo volume to jump 12 percent.

 

(Shanghai Daily June 21, 2007)