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Chinese Aviation Industry in Loss Due to Covid-19

China’s aviation industry drops further into the red, losing 34.25 billion yuan ($4.89 billion) in the second quarter, only slightly narrower than in the first quarter, underlining the massive financial impact from the coronavirus pandemic. The first-quarter data released by the Civil Aviation Administration of China (CAAC) which includes airlines, airports, and other aviation companies, lost 38.1 billion yuan on Friday. 

The aviation industry in China is recovering faster than any other country from COVID lockdown underpinned by a steady recovery in the domestic travel market after the epidemic was largely brought under control. But passenger numbers showed the sector is still way below pre-COVID-19 levels, according to the latest official data. June passenger numbers fell from 42.4% a year, earlier to 30.74 million, the CAAC said, although it was better than the 52.6% loss in May. 

In the first half this year, total passenger numbers dropped by is 45.8% from a year ago. Discount passes that would allow passengers unlimited domestic travel with few restrictions some Chinese airlines have recently rolled out. To boost their revenue. China Eastern Airlines is the first in June to sell “fly at will” flight coupons for unlimited weekend domestic travel until the end of the year. 

But passenger numbers showed the sector is still way below pre-COVID-19 levels, according to the latest official data. June passenger numbers fell from 42.4% f a year earlier to 30.74 million, the Civil Aviation Administration of China said, although that was better than a 52.6% decline in May. In the first 6 months of this year, total passenger numbers dropped by 45.8% from a year ago.