Air China, China Eastern June passenger volume down

Air China and China Eastern Airlines carried fewer passengers in June than a year earlier. The decline in traffic at two of China’s three major airlines extended a drop in May.

Air China, the country’s flag carrier, flew 2.67 million passengers in June, down 7.5% year-on-year.
Volume on international routes down 15.5% while domestic traffic fell 5.3%.
Air China reported a 4.9% slip in cargo volume in June to 74,509 tonnes
China Eastern’s passenger volume fell 11.6% to 2.75 million in June.
China Eastern’s freight volume fell 5.9% to 69,400 tonnes.
International service was down 24.6% and domestic service 9.7%.

The declining volume has compounded headaches from higher fuel prices, which boosted operating costs, and marks a rare reversal for an industry that has been buoyed in recent years by China’s strong economic growth.

China Southern Airlines, China’s largest carrier by fleet size, and Shanghai Airlines have yet to release June figures. Both also reported a slip in passenger numbers in May.

Chinese airlines have also raised domestic jet fuel surcharges as much as 50% to offset pressure from high oil prices and further increases are possible.
Source: Reuters