China may lead global aviation recovery

China is expected to lead the recovery of the global aviation industry, thanks to increases in domestic air travel. Domestic air traffic grew by 20 percent in the first six months compared to the same period last year, despite worldwide declines in air travel.

The increases come on the heels of the government's stimulus package. The civil aviation industry has recorded profits of 8 billion yuan so far this year, due to lower fuel prices, fuel hedging gains and increases in domestic demand.

The industry suffered heavy losses last year due to fuel price fluctuations and shrinking travel demand. The state civil aviation authority says domestic passenger traffic is expected to witness growth of over 20 percent this year, getting a boost from the traditional peak travel season that starts in the third quarter.