China's aviation sector likely to pick up in Q1

Published: 28 Apr 2009 18:20:07 PST

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Apr. 29, 2009 (China Knowledge) - China's aviation sector began to show signs of recovery in the first quarter of 2009, as earnings hit RMB 1.65 billion, boosted by the country's economic stimulus package, said Yang Guoqing, vice minister of the Civil Aviation Administration of China (CAAC), the Shanghai Securities News reported.

In the period from January to March, passenger volume rose 14.6% year on year to 52.54 million and the average load factor hit 75.9%, slightly up 0.5% year on year, according to Yang.

The average price for a single air ticket dropped RMB 0.11 per mile, which helped boost the aviation market. Profits made by domestic airlines hit RMB 1.78 billion, said Yang.

Yang noted that China's aviation sector has great growth potential and that the outlook for the sector is very optimistic.