According to Reuters, sources said that the Civil Aviation Administration of China may continue to maintain the current strict restrictions on international flights in the first half of 2022. According to Reuters, this move will have a wide-ranging impact on the tourism industry in the Asia-Pacific region. Chinese tourists are usually the main force in the tourism industry in the Asia-Pacific region.
The Civil Aviation Administration of China stated last month that in response to the risk of overseas imports, it has adopted more stringent circuit breaker measures, implementing more than 230 international passenger flights every week, which is 2.15% of 2019.
Parash Jain, head of shipping, ports and Asian transport research at HSBC, said in a report on Wednesday that China’s three major airlines stated on the earnings call that the government will take action to host the Beijing Winter Olympics in February next year. Strict new crown prevention and control measures, so restrictions on international flights may continue until the first half of 2022.
Parash Jain added that this means that the full recovery of China’s civil aviation industry may be postponed to 2024. As the recovery of China’s outbound travel is expected to continue to be postponed, this has to some extent caused some analysts to lower their earnings expectations for Chinese airlines in the next few years. For example, China Merchants Securities lowered its forecasts for Air China’s net profit in 2021, 2022 and 2023 to -9 billion yuan, 2.7 billion yuan and 6.7 billion yuan.
Reuters reported that sources said that China’s outbound travel will resume slower than the United States and Europe.