China Aviation Sector Has Record Loss as Passengers Slump 85%
China Aviation Sector Has Record Loss as Passengers Slump 85%
(Bloomberg) -- China’s aviation industry suffered its biggest monthly loss in February after the coronavirus emptied planes and airports.
The industry lost 24.59 billion yuan ($3.5 billion) last month with airlines accounting for 20.96 billion yuan of the deficit, Zhang Qing, an official with Civil Aviation Administration of China, said at a press conference in Beijing on Thursday.
Air-passenger volume slumped 85% to 8.34 million in February as people avoided travel because of the outbreak, according to CAAC. Cargo transport by air fell 21% from a year earlier to 297,000 tons.
Airlines began suspending flights around Jan. 23 after the government locked down the virus epicenter Wuhan and other Chinese cities. The outbreak coincided with the Lunar New Year holiday, a typically busy time as millions of people travel home to see their families. Airlines carried only a quarter of last year’s volume of passengers between Jan. 25 and Feb. 14, according to the transport regulator.
Still, passenger numbers show signs of recovery in March as the spread of the virus in China slows.
To contact Bloomberg News staff for this story: Tian Ying in Beijing at ytian@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Ville Heiskanen, Will Davies
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With assistance from Bloomberg