China’s airlines lose $216 million in one month

“Demand continues to slow and load factors continue to drop”

Airlines in China posted a collective net loss of CNY 1.37 billion ($216 million) for the month of May, a complete reversal of fortunes from their May 2011 net profit of CNY1.88 billion. The fast-deteriorating situation is being blamed not so much on high fuel prices but on a slowdown in domestic demand and exchange losses due to yuan depreciation.
However, (CAAC), the country’s airlines transported 25.4 million passengers during May, up 5.5% from last May, according to the Civil Aviation Administration of China.
“The growth rate of domestic market demand continues to slow and the passenger load factors also continue to drop, especially on international routes,” Ping An Securities aviation analyst Sun Chao explained.