China's air passenger traffic surpasses pre-pandemic levels in Q1 2024

May 06, 2024 (MLN): China's air passenger traffic continued its upward trajectory in Q12024 with total volumes of 177.2 million, an increase of 13.9% QoQ, surpassing the 2019 level, despite some variations among airports, according to Fitch Ratings.

International travel grew by 35.2% QoQ to 14.12m passengers, approximately 78% of the 2019 level.

The Lunar New Year travel rush recorded soaring air travel figures, boding well for 2024 despite economic headwinds.

Air passenger numbers were up by 51% in the 40 days from the same period in 2023, compared with 14.5% in 2019.

Domestic routes between key airports in Beijing, Shanghai, Guangzhou and Sichuan remain busiest, while airlines to emerging tourism destinations showed promising growth.

Airlines flying to Singapore, Thailand and Malaysia led in international route performance in the travel rush.

The extended holiday and a rising demand for individualized experiences also boosted the popularity of long-haul destinations, although a full recovery will take time.

January saw an atypical 54% yoy spike in air cargo volume.

The surge was succeeded by a decrease in February, culminating in 2 million tonnes for 1Q 2024, a 34.2% yoy rise.

The growth can be partly ascribed to the low baseline in 1Q 2023, further fuelled by the burgeoning e-commerce sector, disturbances in the Red Sea, the Panama Canal drought and an easing inflationary climate.

Major Chinese airport operators, including Shanghai International Airport Co. Ltd., Guangzhou Baiyun International Airport Co. Ltd., and Shenzhen Airport Co. Ltd., have returned to profitability in 2023, buoyed by a resurgence in air traffic following the publication of their annual financials.

In contrast, Beijing Capital International Airport's performance has been relatively lackluster due to its slower rebound in international passenger traffic, diversion of passengers to Daxing Airport and weak duty-free sector.

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