Air China, China Eastern's cargo, passenger volumes fall in June

AIR CHINA and China Eastern Airlines flew less cargo and fewer passengers in June year on year, a reduction blamed an a strong yuan, a global economic slowdown and on heavy Olympic airport security as well as this year's earthquake in western China.

Air China suffered a 4.9 per cent fall in airfreight in June to 74,509 tonnes, while China Eastern's freight volume fell 5.9 per cent to 69,400 tonnes, Reuters reported.

Air cargo demand remains robust, fuelled by a flourishing overseas trade, though export growth fell because of a global slowdown and a rise in the yuan.

Air China flew 2.67 million passengers in June, down 7.5 per cent year on year with international traffic down 15.5 per cent and with internal loads down 5.3 per cent.

China Eastern's June passenger load was off 11.6 per cent to 2.75 million, as international passenger numbers fell 24.6 per cent and domestic service dropped 9.7 per cent.

These factors combined to make high fuel prices hit harder, increasing operating costs, and bring about a rare setback in Chinese aviation, which has roaring ahead on the back of China's galloping economy.

China Eastern chairman Li Fenghua told reporters that the carrier expected to be profitable in the first half of the year due to strong traffic from January to April, the news agency reported.