UPGRADE 1-China’s air travel market suffers $4.9 bln loss in Q2 on coronavirus jolt

BEIJING (Reuters) – China’s air travel market sank even more into the red, losing 34.25 billion yuan ($ 4.89 billion) in the second quarter, just a little narrower than in the first quarter, underlining the gigantic financial effect from the coronavirus pandemic.

In the very first quarter the industry, which includes airline companies, airports and other air travel business, lost 38.1 billion yuan, according to information launched by the Civil Aviation Administration of China (CAAC) on Friday.

China’s aviation market has been recovering faster than many nations emerging from the COVID lockdowns, underpinned by a constant healing in the domestic travel market after the epidemic was largely brought under control.

However passenger numbers revealed the sector is still way listed below pre-COVID-19 levels, according to the most recent main information. June guest numbers fell 42.4%from a year earlier to 30.74 million, the CAAC said, although that was better than a 52.6?cline in Might.

In the very first half this year, overall guest numbers visited 45.8%from a year back.

To enhance cashflows, a couple of Chinese airlines have recently presented discount passes that would enable passengers endless domestic travel with few constraints. China Eastern Airlines (600115 SS) is the first in June to offer “fly at will” flight passes for unrestricted weekend domestic travel till the end of the year.

The offer was consulted with excellent consumer interest and more airline companies did the same. Hainan Airlines (600221 SS) this month offered customers flight passes that would allow them to make unrestricted journeys to or from Hainan island, a popular tropical traveler spot.

($ 1 = 7.0017 Chinese yuan renminbi)