China’s domestic air traffic is faltering because of the zero-COVID policy that has led to tighter travel rules in Beijing resulting in weaker consumer confidence after repeated small outbreaks of COVID.
Hongkong and Shanghai Banking Corporation Limited analysts mentioned that potential downside risk to combined fourth-quarter estimates that have a current consensus loss of 7.2 billion, according to Channel News Asia.
Earlier, China’s domestic air passenger traffic stood at around 40per cent of pre-COVID levels in November this year and the number of flights dropped to around 60per cent of 2019 levels, according to aviation data provider Variflight.
Further, Chinese airlines last week cut 9.4 percent of scheduled domestic flights for December, according to airline data firm Cirium, amid fears about the Omicron variant.
Meanwhile, the fall in traffic comes as Chinese airlines are ready for the return of the Boeing 737 MAX around year-end after it last week received safety approvals from China’s aviation regulator.
The extra capacity is likely to prove a burden, according to Chen Jianguo, an expert at Aircraft Owners and Pilots Association of China, according to Channel News Asia.
The outlook for the fourth quarter, normally a popular time for southerners to head north for winter breaks and northerners to head south for warmer weather is also bleak.
China’s domestic air travel is now coming under strain because of COVID-19 related disruptions when international traffic is negligible.
In mid-November, the situation worsened when the city of Beijing announced that travellers from any Chinese city that had reported even a single COVID case within the past 14 days would be restricted from entering the capital, which is being protected ahead of the 2022 Winter Olympics, according to Channel News Asia. (ANI).
