Chinese carriers are expected to report a collective first-quarter profit, according to the Minister responsible for the Civil Aviation Administration of China (CAAC), Li Jiaxiang who pointed to successful initiatives implemented in December in combating the domestic decline and encouraging growth.

Among those initiatives was the decision to withhold approval for new industry entrants until 2010 and the call for airlines to cancel or delay aircraft orders, as well as fee reductions and infrastructure improvements. A decline in domestic fuel prices also helped as fuel expenses currently account for nearly 40 per cent of Chinese carriers’ total operating costs.