Economic slowdown affects business travel profits in China
Monday, August 27, 2012
According to a recent article in Bloomberg Businessweek, China Southern Airlines Co. reported that first half profit took a dastardly fall by 84 percent due to the "economic slowdown," coupled with higher fuel prices and fluctuations in currency. The source revealed that this airline is the biggest carrier in China.
Business travelers across the globe have been seeing scattered effects of China's slowdown on the various components of their corporate accommodations. In another recent article Zee News explained that China's domestic travel market is the largest in the world, which could help to explain ripple effects stemming from China's slowdown being reported from business travelers around the globe.
"Business travel demand in China was dragged by the economic slowdown, which was worse than expected," Li Lei, an analyst at China Securities Co. based in Beijing told Bloomberg Businessweek. "The carrier's plans to add more overseas flights will be good in the long term, but may pressure profitability in the short term."