China’s Domestic Air Travel Nears Pre-Pandemic Levels, According to Fitch Report
According to Fitch Ratings, China’s domestic air passenger traffic in 2023 has shown a remarkable recovery, surpassing the levels seen in 2019. However, the full rebound of China’s airline market, particularly in international services, remains a pivotal factor for achieving complete traffic recovery this year.
Fitch’s recent report, evaluating the fourth-quarter and full-year traffic figures of the Chinese commercial aviation market, indicates a significant resurgence in domestic air travel. In 2023, domestic passengers more than doubled from the previous year, hitting the 590 million mark. This surge reflects a robust recovery trajectory for the domestic sector, outpacing many global counterparts.
On the international front, the scenario is more nuanced. International passenger numbers rose sharply from 1.9 million in 2022 to 29 million in 2023. Despite this increase, these figures represent less than 40% of the traffic seen in 2019, highlighting the ongoing challenges in international travel recovery.
Fitch points out that flight frequencies between China and the U.S. reached 70 times weekly in the fourth quarter of 2023. While this is a positive development, it still falls short of the pre-pandemic frequency of 300 flights per week. This gap underscores the gradual nature of the international market’s recovery.
The report also observes a general upward trend in other international routes throughout 2023. Fitch attributes this progress to enhanced policy support aimed at fostering cross-border travel. Initiatives such as visa-free trials and the optimization of customs policies have played a significant role in facilitating this growth.
Another aspect highlighted by Fitch is the continued capital investment in airports during the fourth quarter of 2023. This elevated capital expenditure may exert pressure on the leverage metrics of airport operators. However, Fitch notes that the access of most Chinese airports to government support can help mitigate these risks.
The dichotomy between the rapid recovery of domestic air travel and the slower pace of international service resumption in China reflects a global trend in the aviation sector’s post-pandemic recovery. While domestic markets have bounced back more swiftly, international travel continues to face hurdles, including varying travel restrictions and consumer confidence levels.
As China’s airline market navigates these challenges, the focus remains on sustaining the domestic market’s growth momentum while accelerating the recovery of international services. This balance is crucial for the overall health and resilience of the aviation sector in one of the world’s largest markets.