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Airlines in China

Total passenger volume in China's airline industry to hit 354.5 million in 2013

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2014-01-15 20:44:03 - Airlines in China - a new market research report on

Over the five years through 2013, revenue of the Airline industry in China has been growing at an annual rate of 14.1% to total $94.5 billion. In the aftermath of the global financial crisis, the airline industry rebounded with strong growth in passenger volumes. Total passenger volume is expected to amount to 354.5 million in 2013, 11.0% up from 2012.

The industry is subject to fierce competition, which leads to low industry profit margins. Challenges over the past five years included an unstable global economy and high jet fuel prices, which led to plummeting industry profit in 2011 and 2012. In addition, the Beijing-Shanghai High-Speed Railway began operations in 2011, intensifying domestic transportation competition.

Over the next five years, industry revenue is



forecast to grow at an average annualized rate of 10.3%, totaling $154.2 billion by 2018. Growth will gradually stabilize as air traffic volumes increase steadily and the industry matures, but volatile jet fuel prices will continue to be a significant risk factor for industry operators.

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