Many investors said that with the recovery of China’s domestic travel industry, the recovery rate of Chinese airlines may be faster than that of many European and American counterparts, according to an article published on CNBC News Network on the 19th.
reported that the novel coronavirus pneumonia caused countries to close their borders and take restrictive travel measures, which caused great losses to the global aviation industry. China was the first country to spread the new coronavirus, and as the epidemic has stabilized, China has relaxed some travel restrictions in the past few months to allow people to travel within the country. < p > < p > Hanya investment, an Asian investment management company of Prudential, UK, pointed out in a report that at present, most Chinese tourists choose short distance leisure travel, such as taking cars or trains. Although China’s air travel recovery lags behind land travel, Chinese airlines are still ahead of their U.S. and European counterparts in the recovery. Most of China’s airlines’ revenue comes from domestic travel, which means that airlines “are more resilient than other regional airlines for the rest of the year.”. < p > < p > CNBC said signs of recovery in China’s air passenger traffic have prompted HSBC to maintain its “buy” ratings on Hong Kong listed shares of Air China, China Eastern Airlines and China Southern Airlines. Like other airlines in the world, affected by the epidemic, the three airlines suffered significant losses in the first half of 2020, and their share prices fell sharply. But HSBC forecast in a report on the 17th that the surge in passenger numbers could help support ticket prices, and the losses could narrow in the coming months. Domestic passenger traffic is expected to recover faster than international passenger traffic, which is beneficial to mainland airlines as their profits are mainly concentrated on domestic routes. (overseas website Zhang Qi)