China's aviation regulator said on Thursday that the drop has caused a 21bn yuan (£2.35bn) fall in revenue.
Earlier this week the Chinese government announced fresh measures to support its struggling carriers.
The global airline industry is facing a massive downturn in passenger numbers due to travel restrictions.
The Civil Aviation Administration of China (CAAC) said it will provide subsidies to Chinese airlines and give additional funding for international flights.
Take-off and landing charges are also being reduced to help carriers cut costs during the downturn, while airport infrastructure spending will be increased by 100bn yuan during 2020.
China was the epicentre of the coronavirus outbreak and has seen flights drastically cut inside the country as well as internationally since late January as the pandemic spreads across the globe.
China's biggest airlines include China Southern, China Eastern, Air China and Hainan Airlines. China is reportedly planning to take control of Hainan's parent company, HNA Group, and sell off its airline assets.
Chinese government officials recently took on key management roles at heavily-indebted HNA Group, according to the Financial Times.
Most international carriers have cancelled services to mainland China with several pushing these suspensions into April.
The airline industry was dealt another major blow on Thursday following US President Donald Trump's travel ban between the US and Europe, excluding the UK. This ban is likely to hit American and European airlines, more than Asian-based ones.
Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.
Smarter Decisions with Smart News
Smart Market News is committed to getting its readers the latest updates and insights on industries that help in making “smarter” business decisions. With insights and inputs from corporate decision makers, we bring you the stories of adopting innovative solutions and strategies that have been changing the world. Our editorial insights on products, solutions, companies, and adoption of best practices not only help in understanding the markets better, but also prove to be a complete package for your information needs.