PROFITS in China's aviation industry soared 174 percent to 13.3 billion yuan (US$1.96 billion) in the first half of this year as it flew on the wings of booming demand, the aviation regulator said yesterday.

The industry, including airlines and airports, grew its revenue by an annual 41.9 percent to 183.9 billion yuan, the Civil Aviation Administration of China said on its website.

"Robust demand, especially on international routes and the cargo business, propelled airlines' business and profitability in the period," said Xu Jianhua, an analyst at Orient Securities Co. "We forecast ticket prices to rise in the third quarter of this year as it is a peak season for travel."

Air China and China Eastern Airlines have raised prices of first-class and business-class tickets after the aviation regulator allowed domestic carriers to adjust prices from June 1.

Domestic carriers flew 126 million passengers between January and June, a rise of 17.6 percent from a year earlier, and carried 2.64 million tons of cargo, up 38.6 percent.

The industry invested 17 billion yuan, up 19.7 percent, in fixed-asset investments in 25 projects, including expanding Shanghai Hongqiao International Airport.

Li Jiaxiang, CAAC's director, said the government will open more international routes from northeast China to tap rising demand. It will also grant subsidies and cut taxes for airlines flying international routes.