Profit growth among Chinese airlines is expected to slow in 2012 as passengers opt for high-speed train travel instead. According to the Civil Aviation Administration of China, profits for the airline industry are expected to raise by 5.1% percent to CNY45.6 billion (US$7.2 billion) this year, a far cry from the 300% surge in 2010.

"In addition to rivalry from an increased number of domestic high-speed rail links put into operation, business prospects for China’s airline industry are dimming on a slackened global air market, rising oil prices and the weak capabilities of air companies to cope with rising challenges," said Li Hun, Vice Director of the Civil Aviation Administration of China. Chinese airlines have already postponed imports of 60 airplanes in 2011, and 2012 deliveries are not expected to exceed 150.

Meanwhile the annual number of airline passengers is expected to hit 290 million by the end of this year, up 8.2% from 2011.

Source: Travel Daily Asia