China Domestic Aviation Revives Slowly After Virus Shutdowns

The aviation industry is watching domestic capacity in China as a harbinger of demand recovery in other markets

China’s domestic flights rose by about a fifth in March from the previous month, the aviation regulator said, but that was still less than half the flights before the shutdowns due to the coronavirus, showing the sector is recovering only gradually.

The aviation industry is closely watching domestic capacity in China as a harbinger of demand recovery trends in other markets around the world that are still in a capacity cutting phase as the pandemic spreads.

The number of daily flights climbed 20.5% in March to 6,533, Jin Junhao, an official at the Civil Aviation Administration of China (CAAC), told a press conference on Thursday. That was still just 42% of the daily flights before the coronavirus struck.

Most of the increased travel demand in March was from labour abundant regions such as southwest and northwest China to coastal areas where labour demand was tight, he said.

Major state-backed carriers this week warned that fares remained low, fewer seats were filled than usual and cautious travellers were waiting until the last minute to book.

The rebound in China has been hampered by the slower-than-expected recovery in broader economic activity.