China airlines report $3 billion loss in February as virus erodes travel demand

  • Published Month : Thursday, 12 Mar 2020 11:00 am

Chinese airline passenger numbers slumped by 84.5% last month, highlighting the huge economic impact of the coronavirus outbreak.

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.

Read here

About The Insight Partners:

The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

A PHP Error was encountered

Severity: Warning

Message: count(): Parameter must be an array or an object that implements Countable

Filename: amp/news_details_amp.php

Line Number: 252

Backtrace:

File: /home/smartmarketnews/public_html/application/views/amp/news_details_amp.php
Line: 252
Function: _error_handler

File: /home/smartmarketnews/public_html/application/controllers/Amp_controller.php
Line: 41
Function: view

File: /home/smartmarketnews/public_html/index.php
Line: 315
Function: require_once

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.

media@smartmarketnews.com | sales@smartmarketnews.com

Contact Us
Visit Our Sites
© The News and Media Division of The Insight Partners 2019 | All Rights Reserved | Privacy Policy