Potential versus reality

China’s growth doesn’t necessarily translate into growth in profits

Airlines can hardly be forgiven for regarding China as the potential Golden Goose of the future, given its spectacular rise in terms of air traffic and airline growth. Everyone wants to get a piece of the pie.

The latest figures from the Civil Aviation Administration of China (CAAC) underscore the potential. In the first half of this year some 296.6 million passenger trips were made in China, up 12.4 per cent year on year. Cargo turnover rose 6.4 per cent year-on-year to 3.6 million tonnes. The world’s second largest aviation market, after the United States, expects passenger trips to hit 720 million annually by 2020.