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China's aviation industry is expected to carry 16 percent more passengers in 2007 as people travel more both at home and abroad, according to the General Administration of Civil Aviation.

The aviation industry will carry a total 185 million passengers this year, the administration said in a report.

The industry will also carry 3.9 million tons of cargo in 2007, 12 percent higher from a year earlier, said the report.

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The administration says that Chinese travelers will take 1.5 billion trips in the country using all forms of transportation, an increase of eight percent. Foreign visitors are expected to take 129 million trips in China using all forms of transportation, a rise of four percent over last year.

Li Lei, an analyst with CITIC Construction, said the aviation industry will become more profitable as more tickets are sold and China's currency appreciates.

Profits for the whole of the aviation industry is expected to rise 40 percent to 9.5 billion yuan (US$1.2 billion) this year, while that of the air carriers will rise 68 percent to four billion yuan (US$522.9 million), Li said.

The entire industry racked up profits of 530 million yuan in the first quarter, compared with losses of 1.34 billion yuan a year ago, the General Administration of Civil Aviation said in early May.

Meanwhile, Chinese airlines reported losses of 820 million yuan, down from 2.14 billion yuan in losses for the same period last year.

(For more biz stories, please visit Industry Updates)