Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

China outbound flight bookings at 15% of pre-pandemic levels despite recent surge - ForwardKeys

Published 01/11/2023, 05:32 PM
Updated 01/11/2023, 08:11 PM
© Reuters. FILE PHOTO: A worker in a protective suit walks near a plane of Air China airlines at Beijing Capital International Airport as coronavirus disease (COVID-19) outbreaks continue in Beijing, China January 6, 2023. REUTERS/Thomas Peter/File Photo

By Jamie Freed

(Reuters) -China's outbound flight bookings were at only 15% of pre-pandemic levels in the week after the country announced it would reopen its borders, despite a 192% jump from the same period last year, travel data firm ForwardKeys said on Thursday.

Low airline capacity, high air fares, new pre-flight COVID-19 testing requirements by many countries and a backlog of passport and visa applications pose challenges as the industry looks to recovery, ForwardKeys Vice President Insights Olivier Ponti said in a statement.

"Although Chinese New Year is likely to see international travel rebound for the first time in three years, we will need to wait longer before we see a resurgence in Chinese tourists exploring the globe," he added.

Some online travel agencies had touted multi-fold surges in searches and bookings since the Dec. 26 border announcement but did not provide data that compares the level of interest to 2019.

ForwardKeys data shows that average outbound fares from China were 160% higher than 2019 in December, though that represented a downward trend since June when flight capacity was even lower and quarantine was required.

Airlines are running only 11% of pre-pandemic international capacity to and from China in January, according to Cirium, though the figure is expected to rise to around 25% by April based in current data.

An official at China's aviation regulator forecast the international market could recover to around 80% of 2019 capacity levels by the end of the year, China Daily reported on Thursday.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Ponti said his firm expected the Chinese outbound market would pick up strongly in the second quarter when airlines schedule capacity for spring and summer, which includes the May holiday, Dragon Boat festival in June and summer holidays.

The most popular destinations booked between Dec. 26 and Jan. 3 were Macau, Hong Kong, Tokyo, Seoul, Taipei, Singapore, Bangkok, Dubai, Abu Dhabi and Frankfurt, with 67% of the bookings made for the Lunar New Year holiday period between Jan. 7 and Feb. 15, ForwardKeys said.

Latest comments

These numbers are so optimistic. With Covid spreading throughput China the numbers are sure to drop. China's GDP for 2023 will be revised downward for sure.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.