Daily Management Review

Coronavirus will bring Chinese airlines losses up to $ 14.3 billion


The outbreak of coronavirus has already affected all sectors of the Chinese economy. A sharp reduction in travel around the country and abroad has caused significant losses for airlines. If the epidemic is not tamed before April-May, the lost revenue of Chinese national air carriers can reach 100 billion yuan (about $14, 3 billion dollars).

Cory Doctorow via flickr
Cory Doctorow via flickr
By going to any application for buying airline tickets, one can be pleasantly surprised at the low prices, but not everyone will risk traveling now.
In January, the country's authorities ordered airlines to reduce the number of both domestic and international flights, based on market assessments, but in no case they completely interrupted the flight connection, which translates into multimillion-dollar losses for carriers.
Based on the current trend, Professor Qiu Lianzhong, professor at the Academy of Civil Aviation Administration of the PRC, estimated that in February China's civil aviation revenues reached about 37 billion yuan (about$ 5.2 billion). At the same time, the projected loss of the industry in March may amount to 35 billion yuan (about $ 5 billion).
"If the epidemic continues until April-May, the total amount of lost revenue for the industry can reach 100 billion yuan (about $14.3 billion dollars)," the analyst said.

source: scmp.com