Chinese airlines set to rebound

The fortunes of China’s hard-pressed airlines may take off with the fall in world oil prices, appreciation of the local currency and rising jet fuel surcharges - although this year’s loses still appear inevitable, say market observers.

Ji Yuntao, an analyst with the research institute of Changjiang Securities, said two factors were to blame for the drop in operating revenues of Chinese airlines this year.

The first was the competitive pressure to cut air fares and the second was rising oil prices, he said.