Source: People’s Daily October 8, 2011 9:19:24

　　According to the latest earning report by International Air Transport Association (IATA): The estimated profit of air transport in 2011 was increased from 4 billion USD to 6.9 billion USD. IATA stressed that in spite of profit increase, the industry still suffered a low profit rate this year –only 1.2%. According to estimation, the profit of the industry will be 4.9 billion USD, with a profit rate of only 0.8%.

　　The statistics of IATA shows that China’s air transport industry develops well and China-based airlines have strong profitability. In 2010, in terms of passenger volume, there were two Chinese airlines among the top 10, China Southern Airlines ranking the 4th and China Eastern Airlines ranking the 9th. Air China ranked the 11th. In terms of net profit, in 2010, Air China ranked the 1st worldwide, and Hainan Airlines and China Eastern Airlines were also among the top 10.

　　Tony Tyler, IATA''''s Chief Executive Officer (CEO) and Director General (DG) told the reporter of our press that there were two reasons for the steady development of the air transport industry of China: one was the vigorous market with potentials for growth; the other was the air transport industry of China had achieved effective reorganizations. In the past, there were many airlines in China, but almost every one of them suffered from losses. Since these airlines were incorporated into the three major airlines, the air transport industry of China met the turnaround. In addition, managing the safety control well is also an important reason. In 2010, the accident rate of the air transport industry of China was just half of the average accident rate of the world.

　　The low profit rate shows the vulnerability of the whole air transport industry, and any potential crisis may be a burden on the air transport industry. According to the data of IATA, as an industry with high volatility, the air transport industry has an average profit rate of 1% in the past 40 years. At present, both the US and Europe are confronted with many economic problems, and the growth of world economy has been slowed down. Tony Tuler believed that the global economy is facing lots of uncertainties, which may lead to losses in the whole air transport industry. Meanwhile, the development of airlines varies from region to region. As a result of debt crisis, European airlines generally have a poor performance; but those in Asia are developing well.