{"id":3307,"date":"2020-08-26T07:24:41","date_gmt":"2020-08-26T05:24:41","guid":{"rendered":"https:\/\/beta.forwardkeys.com\/full-recovery-of-domestic-air-travel-in-china-by-september\/"},"modified":"2024-12-04T12:33:03","modified_gmt":"2024-12-04T11:33:03","slug":"full-recovery-of-domestic-air-travel-in-china-by-september","status":"publish","type":"post","link":"https:\/\/forwardkeys.com\/es\/full-recovery-of-domestic-air-travel-in-china-by-september\/","title":{"rendered":"Full recovery of domestic air travel in China by September"},"content":{"rendered":"
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ForwardKeys, the travel analytics company, is predicting that domestic air travel in China, which has been recovering progressively in the wake of the COVID-19 outbreak, will reach a full recovery by the start of September.<\/p>\n

In the second week of August, domestic arrivals at Chinese airports reached 86% of 2019 levels and bookings (issued air tickets) hit 98%, with most being for travel in mid to late August.<\/p>\n

\"China-domestic-recovery-graphs-V2-2-min\"<\/p>\n

The ForwardKeys forecast of a full recovery is based on four factors. First, the pandemic is now under control. Second, domestic aviation seat capacity is set to grow by 5.7% in the last week of August, when compared to the same period in last year \u2013 and when airlines make seats available, they tend to fill them by flexing fares. Third, many schools and university students are travelling ahead of the start of term in September. Finally, aggressive price promotions have greatly stimulated demand.<\/p>\n

Since mid-June, nine Chinese airlines have launched several different offers. For example, China Southern\u2019s \u2018Fly Happily\u2019 promotion allows customers to fly to any destination across the country, before 6 January, for $529. Until year-end, HNA allows passengers on its airlines to fly to and from Hainan for $386 and Xiamen Airlines is launching \u2018Students Fly\u2019, which allows first-year university students to take a flight between 25th<\/sup>\u00a0August and 25th<\/sup>\u00a0September for just $40.<\/p>\n

Looking back, the aviation market in China bottomed in the second week of February and it has climbed slowly since then. Along the way, the recovery highlights were the Labour Day holiday at the start of May, resumption of group tours within China in mid-July, containment of Beijing\u2019s second wave of COVID-19 later that month, and the ruling on 20th<\/sup>\u00a0August by the Beijing Centre for Disease Prevention and Control, that people in Beijing were no longer required to wear a mask in public. The most notable setback was Beijing\u2019s second COVID-19 outbreak, which caused the recovery to stall from the second week of June for a month.<\/p>\n

\"China-domestic-recovery-graphs-V2-1-min\"<\/p>\n

Analysis of destinations within China reveals that Sanya, the holiday hotspot in the South China Sea, has been the stand-out performer, with 14.2% growth year-on-year in the second week of August \u2013 largely helped by Hainan province\u2019s new duty-free policy introduced on 1st<\/sup>\u00a0July.<\/p>\n

Chongqing, Chengdu, Shanghai and Shenzhen have also seen positive year-on-year growth, due to higher levels of economic activity. However, Chinese travel to Beijing is still 24.8% behind the same period in 2019, held back by the city\u2019s second COVID-19 outbreak.<\/p>\n

Olivier Ponti, VP, Insights, ForwardKeys, said: \u201cThis is a highly significant moment because it is the first time, since the start of the COVID-19 outbreak, that a major segment of the aviation market anywhere in the world has returned to pre-pandemic levels. The big question is whether heavy discounting will still be needed to maintain the recovery or whether the industry will return to profitability during the upcoming Golden Week holiday in October.\u201d<\/p>\n<\/div>\n

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\"\"<\/strong><\/p>\n

Olivier Ponti<\/strong>
\nVice-President Insights<\/p>\n

olivier.ponti@forwardkeys.com<\/a><\/p>\n<\/div>\n

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