China’s aviation industry shrinks as pandemic triggers US$5.6 billion in first-quarter losses
- Air passenger traffic fell 53.9 per cent in the first three months, and volume could linger at low level despite recovery signs: CAAC
- Airlines globally could lose as much as US$314 billion this year, according to IATA
The industry suffered losses worth 39.82 billion yuan (US$5.6 billion) in the first three months of this year, the Civil Aviation Administration of China (CAAC) said on Wednesday. Air passenger traffic slumped 53.9 per cent to 74.08 million as the viral outbreak worsened.
While signs of recovery have emerged in recent weeks, activity could still be far from a return to normal levels, the CAAC said in a media briefing in Beijing. It did not specify whether the losses referred to revenue or profit. As a guidance, the domestic aviation industry generated 1.06 trillion yuan in revenue in 2019.
“As resumption of work and production is advancing orderly nationwide, the number of flights has recovered to some extent,” the CAAC noted at the briefing. “But it could continue to linger at a low level in the future.”
In March, the volume of passengers slumped 71.7 per cent year to 15.13 million, while the volume of cargo declined 23.4 per cent to 484,000 tonnes, it added. As airlines cut flights, demand for freight space shifted to all cargo carriers, which experienced a 28.4 per cent jump to 253,000 tonnes last month.
The first-quarter losses came as airlines globally grounded as much as 90 per cent of their capacity, as many governments shut their national borders and stricter lockdown measures killed demand for travel. The pandemic has claimed more than 127,000 lives and infected almost two million people worldwide.