Chinese air carriers report US$216 million collective net loss in May

CHINESE carriers posted a collective net loss of CNY1.37 billion ($216 million) in May, reversed from a net profit of CNY1.88 billion year on year, Xinhua reports.

The industry attributes the reversal to the slowdown of domestic market demand and exchange losses resulting from currency fluctuations.

According to the Civil Aviation Administration of China (CAAC), domestic carriers transported 25.4 million passengers, up 5.5 per cent year on year. Cargo traffic volume increased 0.6 per cent to 450,000 tonnes.

The cargo market also recorded weak growth demand due to the worsening European debt crisis, the fragile US economic recovery and Chinese export slowdown.