HK/China airlines fleet growth falls to 7%

But passenger growth is increasing.

According to Barclays, on a y/y perspective, outlook is constructive for HK/China airlines with tangible capacity discipline in terms of combined fleet growth decelerating from 10% y/y in 2013 to 7% in 2014E.

Combined passenger growth is expected to accelerate from 8% y/y in 2013 to 11% in 2014E.

Here's more from Barclays:

It forecast passenger yield to rebound by 1% in 2014E, driving operating margin for the airlines to expand from 2-4% in 2013 to 3-5% in 2014E.