Bangkok--17 Jun--Centre for Asia Pacific Aviation Chinese air travel demand is shrinking for the first time since the 2003 SARS outbreak — a development that carries significant ramifications for domestic and international airlines and airports. For Air China, the country’s largest international carrier, tighter visa restrictions, added to bad weather and the Sichuan earthquake, are hampering growth rates at a time when fuel prices are surging. Weakening demand is playing havoc with Air China’s load factors as capacity continues to grow. China’s biggest domestic carrier, China Southern Airlines, reports domestic passenger numbers fell 0.1% in May-08 — its first monthly reduction since the SARS outbreak. Chinese carriers are not the only ones affected. Finnair recently described its May-08 traffic figures as “gruesome”, noting “demand has dropped, especially on Chinese routes” and attributing the causes to the Sichuan earthquake and "good restrictions on travel". Airport Authority Hong Kong CEO, Stanley Hui, stated that the Sichuan earthquake may reduce Mainland people's desire to travel, both internationally and to Hong Kong and the Authority would "continue to monitor the market closely in the coming months”. At the start of the year, China Southern Chairman, Liu Shaoyong, stated he expected traffic growth in China in 2008 to “continue to boom” and maintain “robust growth momentum”. China Southern aims to carry 61.8 million passengers and 986,000 tonnes of freight in 2008, up 8.8% and 14.2%, respectively year-on-year. The achievement of these targets must now be doubtful. However, as the August Olympic Games approach, a build-up in inbound traffic to Beijing can be expected. Otherwise, the Games will have an uncertain impact on travel to, from and within China, perhaps further distorting travel patterns in what is already an unusual year.