Latest market news

Chinese airlines warn of continued pandemic impact

  • : Oil products
  • 21/07/19

China's main airlines are warning of continued risks posed by the Covid-19 pandemic, with their June operational data showing a slowdown in air traffic from the previous month.

China Southern carried 8.5mn passengers last month, 19pc more than a year earlier but a 28pc drop from the previous month. Air China said it carried 6.3mn passengers in June, a 41pc rise from the previous year but 25pc less against a month earlier. China Eastern carried 8.02mn passengers in June, a 54pc rise from a year earlier but this was 14pc lower compared with the previous month.

The pandemic "still has an impact on the air transportation business of the company, especially on the international and regional routes, the time span and severity of which has great uncertainty", China Eastern said.

China Southern's passenger demand, measured in revenue passenger kilometres (RPKs), rose by 24pc from a year earlier in June but fell by 27pc against the previous month. It also fell by 42pc compared with June 2019. Its domestic ticket prices have not recovered to pre-pandemic levels, the airline said last month, while international flight capacity was just around 5pc of pre-pandemic levels.

China Eastern said its June RPK grew by 55pc from a year earlier but this was down by 14pc from the previous month and fell by 40pc compared with June 2019. Air China's June RPK grew by 41pc from a year earlier but fell by 26pc against the previous month and by 51pc compared with 2019 levels.

Air travel demand remains a long way from a full recovery compared with pre-pandemic levels, the International Air Transport Association said last month.

Thailand, a top Chinese tourist destination, is experiencing another wave of Covid-19 infections. Thai Airways said it may only resume several commercial flights to Chinese cities in October because of continuing border closures and travel restrictions.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more