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HSBC Global Research reports China airline recovery underway
July 20th 2022
Although China’s “Big Three” airline groups - Air China, China Eastern Airlines (CEA) and China Southern Airlines (CSA) - have foreshadowed interim 2022 losses in earnings guidance earlier this month, analysts at HSBC Global Research believe available seat kilometres (ASK) and revenue passenger kilometres (RPK) data points to a Mainland market rebound. Read More » “We are seeing signs of recovery not only in China’s domestic air traffic but on the international front, courtesy of easing COVID-19 restrictions and strong pent-up demand,” the July 19 HSBC research note said. “Specifically, June domestic ASK and RPK for the Big Three [airlines] recovered to 62% and 49%, respectively, against 2019 levels and were at 36% and 26%, respectively, in May. We expect the recovery trajectory to speed up in the summer vacation.” The HSBC analysis highlighted the July 12’s Civil Aviation Administration of China (CAAC) statement that the nation will steadily resume regular international passenger flights and help reboot the international aviation market. “Indeed, many airlines have successively announced new international flight plans in July. Air China has resumed several international routes to Europe and Asia. CEA plans to operate more than 140 international flights in this month, averaging 30 services a week. Recently, CSA added three more international routes to its schedule and will restore 10 international services, with connections to 31 countries, to its network,” the research note said.
