Profits slow for China's airline industry

The net profit of China's domestic airline companies totaled 26 billion yuan (US$4.1 billion) in 2011, a 26% drop compared to 2010. The Chinese airlines'' profits accounted for around 60% of global net profits. Airlines'' global net profits came to US$6.9 billion in 2010, according to the International Air Transport Association. China''s airlines have double the profit of North American airlines and four times the profits of European airlines, the association said. In 2011, the supply of China''s domestic airline business felt short of demand due to a lack of new airplanes. Around 150 new airplanes are expected to fuel the country''s airline market in 2012, up 10% from a year earlier. The decrease in profit is also related to a gloomy economy globally, according to the Civil Aviation Administration of China. Domestic airline travelers reached 290 million in 2011, up 8.2% from a year earlier, but air shipping dropped 2%. (QNA) f l