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Chinese airlines looking at another year in the red
Published on: 2021-10-15
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This year's National Day holidays could be regarded as the last profitable small peak window for airlines. Observers believe that airline performance over the last three months of this year is heavily dependent on last week's National Day holidays, but there have been few optimistic voices across the industry so far.

The facts suggest that Chinese airlines in the fourth quarter of this year may see another round of bleeding, dragging down the entire year's performance.

"The fourth quarter performance of Chinese airlines industry could be very tough, and the whole year's industry loss could be as high as 30 billion yuan ($4.65 billion)," Lin Zhijie, a market watcher predicted on Wednesday.

In 2020, China's three largest carriers, Air China, China Eastern Airlines and China Southern Airlines recorded a combined loss of 37.1 billion yuan.

He said the loss is due to the localized COVID-19 outbreaks over recent months, such as the Nanjing, East China's Zhejing Province, Harbin in Northwest China's Heilongjiang Province and Ili in Southwest China's Xinjiang Uygur Autonomous Region, which have served to drag down enthusiasm amongst travelers.

In addition, the aviation market will enter the traditional off-season after the National Day holidays, and the fourth quarter of each year is also the season with the largest losses for airlines throughout the year.

For example, before the emergence of the pandemic in 2019, Air China lost 350 million yuan in the fourth quarter, with China Eastern Airlines and China Southern Airlines each losing more than 1 billion yuan.

Data from the Ministry of Transport reveals that from October 1st to 7th, China saw a total of 403 million passenger trips, an average of 57.5 million passengers trips per day, an average daily decrease of 33.9 percent compared to the same period in 2019, and down 7.5 percent than the same period of 2020.

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