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China’s aviation sector aims for profitability this year

by Mike Robinson

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© Reuters. FILE PHOTO – Passenger wearing masks after the outbreak of coronavirus (COVDI-19), line up at Beijing Daxing International Airport to make their way ahead of the Chinese National Day holiday. Beijing, China, September 25, 2020. REUTERS/Carlos Gar

BEIJING (Reuters), – China’s aviation market will try to make profits with a recovery of up to 85% of pre-COVID passenger travel volumes, said the regulator on Monday.

China’s national air traffic is now a laughingstock, having once been the envy of the entire world after an impressive rebound in the aftermath of the pandemic. This has occurred because of a zero COVID policy that quickly eradicates virus clusters, regardless of economic costs.

The Civil Aviation Administration of China has had to cancel more international flights due to the Omicron variant spreading around the globe.

After a 22.5 billion yuan loss in 2018, COVID-19 has left the sector in serious financial trouble. China’s largest airlines, Air China (OTC), China Eastern Airlines(NYSE:) & China Southern Airlines suffered combined losses of 32.25 billion yuan ($5.10 billion) during the first quarter of 2021.

In a meeting of 2022 workers, the CAAC stated that air passenger travel would exceed 570 millions this year, as opposed to 660 million for 2019, before COVID-19.

In a statement, the CAAC announced that they will try to recover losses from COVID-19 and attain profitability “barring any repeated fluctuations,”

China relies heavily on domestic markets to boost its aviation sector’s recovery. However, it has also severely curtailed international flight numbers to discourage travelers.

On Friday, the CAAC stated that it is targeting 2023-2025 to recover international air travel.

($1 = 6.3724 renminbi)

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