China's domestic air passenger traffic surged 22 percent last year despite the global economic downturn and grew 18.8 percent in the first four months of this year, according to figures from the Civil Aviation Administration of China. International passenger traffic has also rebounded and grew 29.9 percent between January and April.

The International Air Transport Association recently said it expects airlines to post a global profit of $2.5 billion in 2010 due to a strong traffic rebound after losing US$9.4 billion last year. Asia-Pacific carriers will deliver the largest profit -- US$2.2 billion -- due to strong GDP growth expectations, said Giovanni Bisignani, IATA's director-general and CEO.

Boeing last week announced a second production rate increase on the B737 program, taking the rate from the previously announced 34 airplanes per month to 35 in early 2012. In May, Boeing cited continued strong demand for the B737 as a reason to ramp up production from 31.5 to 34 jets per month.

Airbus said in March that it will increase the monthly production rate for the A320 from 34 to 36, starting in December this year.

(China Daily June 23, 2010)