Excerpts:

Event:

Air China unveiled its operating data for October 2007. Last month, revenue passenger kilometers (RPK) and revenue cargo ton-kilometers (RCTK) grew 6.50% YoY and 4.40% YoY respectively while available seat-kilometers (ASK) and available cargo ton-kilometers (ACTK) rose 1.30% YoY and -6.30% YoY respectively. As in a few past months, capacity continued to grow slower than traffic, and passenger load factor (PLF) was 83.20%, maintaining the high level of Q3.  

Comments:

▲ In October, demand expanded faster than capacity, keeping PLF near the high end.  

▲ From January to October, favorable results were registered as a whole. 

▲ Demand expansion vastly outpacing capacity improvement will not remain a norm going forward.