Although the peak of the order cycle has passed and concerns about over-capacity in the airline industry are leading to some cancellations and delivery postponements deliveries still need to be stepped up to meet order-book commitments. Medium-term prospects have been hit by our less optimistic view of Chinas potential growth, cutting annual sector growth by up to half a percentage point. However, the shift towards a consumption-led economy in China offers some protection to airlines medium-term ambitions.