Economy gives air travel a bumpy ride

By Irene Shen  |   2008-7-18  |     NEWSPAPER EDITION

CHINA Southern Airlines Co and the nation's other carriers posted a 3.8-percent fall in combined passenger traffic last month, as the economic slowdown curbed demand for air-travel.

Chinese carriers flew 4.2 million passengers in June, according to the CAAC Journal, which is run by the Civil Aviation Administration of China. Passenger volume rose 5.4 percent to 91.8 million in the first half.

Inflation, near a 12-year high, coupled with a falling stock market has cut Chinese spending on leisure. A series of natural disasters, including an earthquake that killed more than 69,000 people in China, also dampened demand for tours.

"Air traffic demand is unlikely to recover before September," Li Lei, an analyst at China Securities Co in Beijing, told Bloomberg News. "The economic slowdown, especially the falling stock market, has curbed people's interest in traveling."

China Southern, the nation's largest carrier, said its passenger volume fell 3.3 percent to 4.2 million on July 11. Air China Ltd, the nation's second-largest carrier, said on Tuesday that its passenger figures for June had dropped 5 percent to 2.7 million.

China Eastern Airlines Corp, the country's third-largest airline, posted an 11.6-percent plunge in passenger numbers last month.

Cargo traffic for the country's carriers fell 0.8 percent to 321,000 tons in June.