The General Administration of Civil Aviation of China (CAAC) has cut its official air traffic forecast for 2011 as international passenger and cargo volumes weaken amid deteriorating global economic conditions. It comes as China Eastern Airlines became the first Chinese airline to cancel B787 orders, opting instead for A330s and smaller B737s. China's passenger growth forecast has been cut from 13% to 8% this year to 288 million passengers - some 13.4 million fewer passenger than previously anticipated - but up from 267 million last year. The air cargo growth forecast has meanwhile been dramatically slashed from growth of 11.5% to flat in 2011, a repeat of 2008 when world economics bottomed out. China's airlines are now expected to handle 5.6 million tonnes of air freight, against 6.4 million tonnes forecast previously. 

China Eastern Airlines executive director Luo Zhuping said this month the global economic slowdown had made it more difficult for Chinese carriers to operate long-haul international routes. Separately he noted the carrier is “not optimistic about the international market in the next two years, for the weakening global economy hurts air travel”.