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China Avation Oil to hit above $1.60?
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bamboo300306
Senior |
16-Mar-2023 16:49
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To summarise, earning for FY23 will be better than FY22. The current down trend presented opportunity to accumulate. What I like about this company is that it still make profit during last year lockdown in China. Zero debt so high interest rate environment will have minimum impact on the bottom line.
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tedlim
Senior |
15-Mar-2023 23:27
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China, air travel rebound set to supercharge oil demand, says IEA WED, MAR 15, 2023 - 07:05 PM Oil supply is still outstripping relatively slow demand, the IEA added, but the market is set to balance by around the middle of the year with China and developing countries driving demand. GLOBAL oil demand is edging up slowly but is set for a huge boost from resumed air travel and China&rsquo s economic reopening after Covid-19 curbs, the International Energy Agency said on Wednesday (Mar 15). &ldquo Global oil demand growth started 2023 with a whimper but is projected to end the year with a bang,&rdquo the Paris-based agency said in its monthly oil report. &ldquo Rebounding jet fuel use and a resurgent China will see an overall 1Q-4Q ramp-up of 3.2 million barrels per day (bpd), the largest relative in-year increase since 2010.&rdquo The agency kept its forecasts for Chinese and global demand relatively steady from the previous month, at 16 million bpd and 102 million bpd, respectively. Oil supply is still outstripping relatively slow demand, the IEA added, but the market is set to balance by around the middle of the year with China and developing countries driving demand. &ldquo Real-time indicators for Chinese mobility mostly stabilised after January&rsquo s remarkable bounce, led by air traffic with domestic flights now well above pre-pandemic levels,&rdquo the IEA said. High inflation and investor concerns over high interest rates cloud the economic horizon and could pose a risk to fuel demand, the IEA warned, adding that concerns over the health of the US banking sector also carried potential downside risks. Meanwhile commercial oil stocks in the developed countries of the OECD reached an 18-month high as demand ebbed and Europe ramped up storage ahead of bans on some Russian crude and refined products imports. Russian oil production stayed near pre-war levels in February despite sanctions on its seaborne exports. Still, crude exports fell 500,000 bpd while a new European Union ban on its seaborne products and a US-led international price cap, which both started on Feb 5, cut Russian products exports by 650,000 bpd. REUTERS |
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kepoh88
Senior |
15-Mar-2023 22:11
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The most promising counter at current moment!!
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tedlim
Senior |
14-Mar-2023 07:48
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China lifts sweeping visa curbs on foreigners In addition to new travel documents being reviewed and approved, visas issued before March 28, 2020 that are still valid will once again allow entry to China, said the embassy notice posted on Monday. CHINA will once again start issuing a range of visas to foreigners as of Wednesday, the country&rsquo s embassy in Washington said, a major easing of travel restrictions in force since the outbreak of the Covid-19 pandemic. The move marks the latest step towards reopening China to the outside world, as Beijing gradually breaks with the strict zero-Covid strategy that defined its pandemic response until a few months ago. In addition to new travel documents being reviewed and approved, visas issued before March 28, 2020 that are still valid will once again allow entry to China, said the embassy notice posted on Monday, translated by AFP from Chinese. The updated policy will also allow for the resumption of visa-free travel for those arriving in cruise ships to Shanghai, as well as for certain tourist groups from Hong Kong, Macau and countries within the Asean regional grouping, the notice said. China received 65.7 million international visitors in 2019, according to data from the UN World Tourism Organization, before the pandemic led the country to seal itself off from the rest of the world. While most other countries began fully reopening their economies and welcoming international travelers earlier, China only began emerging from its strict Covid containment policies in late 2022, after rare demonstrations against President Xi Jinping&rsquo s signature zero-Covid strategy broke out across the country. Those protests in late November expanded into calls for more political freedoms, with some even calling for Xi to resign, turning into the most widespread opposition to communist rule since the 1989 democracy uprising that the military crushed. Reversal In early December, Chinese authorities effectively ended the regime of mass testing, lockdowns and long quarantines &ndash but the abrupt reversal led to a sudden spike in Covid cases. Beijing announced in late December that inbound travelers to the country beginning Jan 8 would no longer need to quarantine, but kept in place visa restrictions on foreigners. At the time, Beijing said it would &ldquo continue to adjust its visa policy for foreigners visiting China in a scientific and dynamic manner in accordance with... the epidemic situation.&rdquo It also then resumed issuing Chinese passports for &ldquo tourism&rdquo or &ldquo overseas visits of friends.&rdquo With cases surging in China around the New Year, several countries &ndash notably Japan and South Korea &ndash reimposed restrictions on Chinese visitors, provoking a tit-for-tat as Beijing issued its own limitations. As cases waned in China, both sides subsequently eased those restrictions. The announcement that China will resume issuing visas to foreigners comes as the country&rsquo s rubber-stamp parliament wrapped up an important session in Beijing, during which Xi was confirmed to a third term as president and his close ally Li Qiang became premier. Li on Monday admitted that achieving the country&rsquo s economic growth target of &ldquo around five per cent&rdquo would be &ldquo no easy task.&rdquo China posted just three per cent growth last year, missing its stated target of around 5.5 per cent by a wide margin as the economy strained under the twin impact of strict Covid policies and a property crisis. AFP |
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tedlim
Senior |
09-Mar-2023 07:51
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Airbull taking off soon.. China logs nearly 40 million entry-exit trips in two months CHINA logged 39.72 million entry and exit trips between Jan 8 to March 7, according to National Immigration Administration data, showing the revival in travel after Covid-19 restrictions were dismantled. The numbers were up 112.4 per cent year-over-year. Data showed 122,000 visas and residence permits for foreigners were issued by immigration administration agencies nationwide by March 7, up 33.1 per cent from before the policy U-turn. Chinese citizens flocked to travel sites and airports after the country re-opened its borders, allowing people to take advantage of travel after being cut off from the rest of the world. During the recent Lunar New Year in late January, holiday trips surged in the country. The number of people entering and leaving the country hit 1.013 million on Feb 25, exceeding one million in a single day for the first time since 2020, said the National Immigration Administration. REUTERS |
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QueenMaya
Senior |
03-Mar-2023 09:17
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Totally shifiting the dynamics. Boom for China Aviation. Good price to get in.
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WBdisciple
Master |
03-Mar-2023 08:11
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China eases COVID-19 test rules for travellers from some countries, including Singapore INGAPORE: China on Wednesday (Mar 1) relaxed COVID-19 testing requirements for travellers from several countries, including Singapore, Malaysia, the Philippines, Cambodia and New Zealand. It is no longer mandatory for a polymerase chain reaction (PCR) test result, which was to be taken no more than 48 hours before departure. Instead, eligible travellers flying directly to China can take an Antigen Rapid Test (ART), within 48 hours before boarding. " Passengers are required to travel to China with a negative test result. If you received a positive test result, you should only travel to China when you tested negative for COVID-19," the Chinese embassy in Singapore said in a notice on Wednesday. It added that the rules are being eased " in accordance with the current situation of (the) COVID-19 pandemic and to facilitate people-to-people exchanges" . The testing rules have also been eased for travellers from Indonesia, Thailand, Switzerland and Russia. Travellers are required to declare their negative test results on the China Customs website or through its app. According to the notice, airlines will no longer check a passenger' s negative PCR or ART results. " You can go through customs with your health declaration result, and China Customs may conduct random sampling inspections," it added. After three years of strict COVID-19 restrictions, China announced a nationwide easing of curbs last December. About a month later on Jan 8, it scrapped quarantine measures for overseas arrivals, requiring travellers to take a PCR test 48 hours pre-flight to enter China. PCR test results are still required for travellers from many countries, including the United States, South Korea and Japan. |
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tedlim
Senior |
02-Mar-2023 21:29
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Singapore Airlines Ltd.&rsquo s low-cost carrier Scoot is bullish on air travel from China bouncing back as it reintroduces flights to the mainland, despite industry worries about weak demand in world&rsquo s second-largest aviation market.&ldquo China is an important market for Scoot,&rdquo the airline&rsquo s Chief Executive Officer Leslie Thng told Bloomberg Television in an interview Thursday. &ldquo China will further help Scoot to go back up to pre-Covid capacity and beyond pre-Covid capacity.&rdquo Thng&rsquo s comments come even as some other airlines and industry groups complain about weak demand in China off the bat of an abrupt, chaotic reopening that caught airlines and airports off guard, mandatory Covid testing requirements for passengers travelling to China and a slow visa process. Spring Airlines Co., China&rsquo s largest budget carrier, said this week that international air travel remains weak and it&rsquo s operating at just 20% of pre-Covid levels, while Malaysia&rsquo s AirAsia X Bhd. said it has only been able to sell enough tickets from China to fill just half of an aircraft&rsquo s seats. China will take at least a year to get back to air travel levels seen in pre-pandemic days, according to Subhas Menon, director general of the Association of Asia Pacific Airlines. Philippine airline Cebu Air Inc. has also said the budget carrier wasn&rsquo t seeing a massive demand rebound from China compared to other international markets, primarily due to administrative challenges, terming it what &ldquo seems to be two markets&rdquo given the difference between domestic and international demand. Scoot is now operating about 25%-30% of its pre-Covid capacity to China, Thng said, increasing to about 60% by June and as high as 90% by October. Scoot plans to resume flights to and from China to accommodate travel demands in line with the further relaxation of border restrictions, it said in a statement last month. The airline will progressively increase total flights to China from 14 to 26 times weekly by stepping up flight frequencies to seven of its existing cities. &ldquo Based on the 25%-30% capacity that we&rsquo ve injected back into the system now, demand is still very strong,&rdquo Thng said on Thursday. &ldquo So we&rsquo re quite confident that demand will be returning back from China.&rdquo |
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ozone2002
Supreme |
02-Mar-2023 10:51
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CIMB Trendspotter: China Aviation Oil Singapore Corp Ltd &ndash Technical Buy  |
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QueenMaya
Senior |
01-Mar-2023 13:03
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SINGAPORE - Mainboard-listed China Aviation Oil (CAO), the sole supplier of aviation fuel in China, is tipped to benefit hugely from the recovery in China&rsquo s aviation industry. So says CGS CIMB in its latest report this week, where it upgraded the stock and posted a price target of $1.21 on the counter. &ldquo With China reopening its borders on Jan 23, we see a clearer path to recovery for jet fuel volumes as international flights ramp up further,&rdquo wrote analysts Kenneth Tan and Izabella Tan. &ldquo On the operational front, we believe the worst is likely over.&rdquo The report comes just days after the company reported a 13.6 per cent drop in net profit for the second-half year to December to US$13.9 million (S$18.7 million). Full-year earnings fell 16.9 per cent to US$33.5 million. CAO, however, maintained a strong balance sheet, with cash and cash equivalents of US$308 million. That said, an almost three-year pandemic lockdown in China has severely weighed down the company, which has an unassailable monopoly on aviation fuel supply in that country. The stock fell to as low as 60 cents in early 2022 as China continued to shutter its borders and ground most of its international flights. But it has been recovering of late, hitting a high of around $1.07 in recent weeks. At CGS-CIMB&rsquo s target of $1.21, it has an inputted upside of almost 28 per cent. CGS CIMB noted that the stock was trading at 8.2 times forecasted 2024 earnings, well below historical average. &ldquo With China&rsquo s reopening in January 2023, we expect supply volumes to rebound on the back of rising international flights to and from China. We forecast 35 per cent year-on-year jet fuel volume growth in financial year 2023, followed by 30 per cent in financial year 2024 (forecast),&rdquo the report said. The report added that China had much room for recovery. &ldquo We now see a much clearer path to recovery in international flights, and believe jet fuel supply volumes likely bottomed out in financial year 2022,&rdquo it said. &ldquo As at the week of Feb 27, 2023, international flight capacity from China stood at about 20 per cent of pre-Covid-19 levels, indicating much room for further recovery going into the second half of 2023. We believe a recovery in supply volumes should be seen more meaningfully in the second half of financial year 2023 as airlines take time to ramp up capacity.&rdquo The investment house forecasts a 68 per cent earnings per share leap in 2023 for CAO, premised largely on volume recovery in fuel uptake, due to significant ramp up in both domestic and international air travel. CAO shares were trading up two cents, or 2.1 per cent, at 97.5 cents as at 11.10am on Wednesday.
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Joelton
Supreme |
01-Mar-2023 11:23
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China Aviation Oil Reports FY 2022 Revenue of US$16.46 billion and Net Profit of US$33.19 million
JET fuel trader China Aviation Oil (CAO) : G92 +2.69%reported a fall in net profit of 13.6 per cent to US$13.9 million for the second half of the year ended Dec 31, 2022, from US$16.1 million in H2 FY2021.
The company on Tuesday (Feb 28) said this was due to a decrease in gross profit by 7.6 per cent to US$13.9 million and an increase in expenses. This was partially offset by the rise in the share of results from associates and other income.
Its board of directors proposed a final dividend of 1.60 Singapore cents per share, down from 1.90 Singapore cents per share in 2021.
Revenue for the half year decreased 19.9 per cent on year to US$7.2 billion from US$9 billion. Cost of sales for the half year fell 19.9 per cent to US$7.2 billion from US$8.9 billion in 2021.
Earnings per share (EPS) for the half year stood at 1.61 US cents, down from 1.87 US cents in H2 of FY2021.
Share of results from associates rose 10.4 per cent to US$8.2 million from U$7.5 million in the year-ago period. The share of results from Shanghai Pudong International Airport Aviation Fuel Supply Company rose 2.2 per cent to US$8.8 million, mainly due to lower operating expenses.
Other operating income also rose 34.8 per cent to US$2 million from US$1.5 million in 2021, which the company said was mainly due to higher interest income and a gain on deemed disposal of associates.
For the full year, net profit for the company fell 16.9 per cent to U$33.5 million from US$40.4 million in FY2021. Revenue also decreased 6.7 per cent on year to US$16.5 billion from US$17.6 billion, which the group mainly attributed to the decrease in trading volume.
Total supply and trading volume for the full year fell by 40.6 per cent to 20.3 million metric tons from 34.1 million metric tons in 2021.
EPS for FY2022 fell 16.8 per cent to 3.90 US cents from 4.69 US cents.
Mr Lin Yi, Chief Executive Officer of CAO, said, " Under the astute guidance of our Board and Management, CAO continues to position itself for long-term sustainable growth. While most pandemic restrictions have eased and global travel has picked up, uncertainties including ongoing geopolitical tensions, rising inflation and recessionary fears continue to put pressure on the global economy.
Despite these daunting challenges, the Group' s strong financial position and experienced management places us in good stead to deliver sustainable returns to our shareholders.
The progressive recovery of the global aviation industry boosted by the reopening of China&rsquo s borders bodes well for CAO&rsquo s future performance as we actively leverage on this recovery trend and seek out opportunities for strategic expansion through investments in synergetic and strategic oil-related assets and businesses."
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easywin
Supreme |
28-Feb-2023 12:35
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Always the case in sgx, sell on news
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spursfan
Elite |
28-Feb-2023 12:30
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https://links.sgx.com/1.0.0/corporate-announcements/LOE5P5GN4Z8JWLSQ/748159_CAO_Media_Release_FY2022.pdf | ||
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tedlim
Senior |
22-Feb-2023 08:21
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CAO will be a strong proxy Airlines turn market darlings after Covid-19 forced financial clean-up Virgin Australia has undergone a remarkable transformation under its new owner. PHOTO: REUTERS UPDATED 2 MINS AGO FacebookTwitter SYDNEY - Unloved during the Covid-19 pandemic as their businesses were incapacitated almost overnight, airlines that cut back to survive the crisis are now blowing through profit forecasts and luring back investors. Virgin Australia, so financially frail when Covid-19 hit in 2020 that it folded in weeks, has undergone a remarkable transformation under new owner Bain Capital. Free of much of its debt after exiting administration and with a scaled down fleet, the airline is making money for the first time in years. It plans to relist in Sydney, possibly in 2023. These freshly &ndash and forcibly &ndash streamlined carriers are capitalising on a surge in travel since virus restrictions fell away. The International Civil Aviation Organisation expects passenger demand to recover to pre-Covid-19 levels on most routes this quarter, and then to about 3 per cent higher than 2019 levels by the end of 2023. &ldquo Aviation is investible again,&rdquo said Ms Jun Bei Liu, a portfolio manager at Tribeca Investment Partners in Sydney. &ldquo Asian airlines are going to go through the roof.&rdquo A Bloomberg gauge of 29 airlines from around the world has climbed almost 30 per cent since the end of September. Get tips to grow your investments and career in weekly newsletter Sign up By signing up, you agree to our Privacy Policy and Terms and Conditions. The reopening of China, the largest outbound travel market before the pandemic, should drive a fresh traffic rebound in and out of favoured destinations like the United States, Japan and Singapore. In Hong Kong, hammered by China&rsquo s shutdown, Cathay Pacific Airways will in 2023 make its first profit since 2019, according to analyst forecasts. It is an extraordinary turnaround for an industry that suffered losses approaching US$200 billion (S$268 billion) over the past three years. Tens of thousands of pilots, flight crew, ground workers and back office staff lost their jobs, while facilities in Californian and central Australian deserts filled up with unwanted aircraft. Carriers will generate profits of US$4.7 billion in 2023, according to the International Air Transport Association. While that is a fraction of the US$26.4 billion airlines made in 2019, key financial ratios indicate the industry is on its soundest footing in years. The ability to repay debt using earnings, for example, is back to pre-pandemic levels and will strengthen through 2025, according to data compiled by Bloomberg. That means airlines are more able to weather periodic demand shocks, like the one that undid Virgin Australia, and less likely to default. &ldquo Considering the doom and gloom forecast during the pandemic, the industry is doing quite well,&rdquo said Dr Volodymyr Bilotkach, associate professor in aviation management at Indiana&rsquo s Purdue University and author of the book The Economics of Airlines. &ldquo Following crises, some airlines emerge in better shape than before.&rdquo The rejuvenation has not been uniform. Norway&rsquo s Flyr in February filed for bankruptcy less than two years after starting flying. Days earlier, British low-cost carrier Flybe ceased operations after collapsing into administration. The failures are more closely aligned with billionaire investor Warren Buffett&rsquo s assessment of the industry more than a decade ago. &ldquo The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money,&rdquo the Berkshire Hathaway chairman wrote in an annual investor letter. &ldquo Think airlines.&rdquo Global airline traffic in 2022 rebounds to over half of pre-pandemic levels Aviation rebound set to continue in 2023, but industry optimism tempered by uncertainty Supply and demand shift What is different now is the huge gulf between limited available seats on aircraft and the public&rsquo s strong appetite for travel, which is allowing airlines to supercharge fares. &ldquo The supply-demand dynamics are as different as they&rsquo ve ever been in my career,&rdquo United Airlines Holdings chief executive Scott Kirby said on an earnings call in January. &ldquo Every data point keeps demonstrating it over and over again. I think margins across the board are going to be higher.&rdquo Reporting record fourth-quarter revenue in January, American Airlines group CEO Robert Isom said navigating the pandemic had made the carrier more efficient &ndash its fleet is simpler and the network focuses on the most profitable flights. &ldquo This is our best-ever post-holiday booking period,&rdquo he said. &ldquo We expect the strong demand environment to continue in 2023.&rdquo The demand surge coincides with constrained labour supply. For many passengers, that has translated into long queues at understaffed check-in counters or lengthy waits at baggage carousels. For investors, it means some of the airlines they own are generating more than twice as much revenue per worker than they were two years ago. Ryanair Holdings, Europe&rsquo s largest discount airline, returned to profit in the quarter through December and sees no end to its lucrative run. &ldquo We will deliver record profits in the current financial year and we would expect to continue to grow profitably into next year and beyond,&rdquo chief financial officer Neil Sorahan said in an interview. The Dublin-based airline ordered dozens of fuel-efficient Boeing Max jets during the slowdown. Australian rebound Virgin Australia provides perhaps the sharpest &ldquo then-and-now&rdquo contrast. For the best part of a decade before the pandemic, the airline reported annual losses, burned through shareholder capital each year, and occasionally asked investors for more money. Under Bain&rsquo s ownership, Virgin Australia has cut thousands of jobs, got rid of long-distance planes, and now flies only shorter-haul Boeing 737s. CEO Jayne Hrdlicka &ndash former boss of Qantas&rsquo low-cost airline Jetstar &ndash has reined in spending on lounges and scaled back international routes. Now the airline is planning what could be one of Australia&rsquo s biggest listings of the year. In an e-mail to staff on Jan 31, Ms Hrdlicka said revenue was about A$2.5 billion (S$2.3 billion) in the six months through December, with a profit margin of around 5 per cent. The airline&rsquo s first profit in years &ldquo is certainly a milestone to quietly celebrate&rdquo , she wrote. BLOOMBERG |
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WBdisciple
Master |
21-Feb-2023 18:39
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SIA reports 3QFY2023 earnings of $628 million, up 12.7% y-o-y As travel recovery continues, Singapore Airlines (SIA) C6L 0.00% has again reported better earnings. For its 3QFY2023, the airline reported earnings of $628 million, up 12.7% y-o-y. Revenue in the same period was up 8% to $4.85 billion. For the nine months ended Dec 2022, the airline reported earnings of $1.56 billion, versus a loss of $752 million. Revenue, meanwhile, reached $13.26 billion, up 157.9% y-o-y. The airline has been steadily reinstating popular routes to China and India, as well as increasing frequency to the likes of Hong Kong, Seoul, Taipei and various other points in Japan. As of Dec 31 2022, SIA as a group covered 111 passenger destinations in 36 countries, while its cargo network covers 116 destinations in 38 countries. As China reopens, SIA is trying to resume its services. It now flies to 14 destinations in China, some way to go before reaching 25 points covered before the pandemic. |
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FrancisLim
Master |
21-Feb-2023 15:42
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28th Feb Tuesday.
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WBdisciple
Master |
20-Feb-2023 14:16
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Anyone knows when is their results announcement for FY2022? | ||
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tedlim
Senior |
20-Feb-2023 08:34
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CGS-CIMB: China Aviation Oil (TP of S$1.21) Initiate coverage with an Add call and a TP of S$1.21, based on 9.5x CY24F P/E. Healthy net cash may drive M& A opportunities, in our view. Attractive proxy for a recovery in China&rsquo s aviation traffic China Aviation Oil (CAO) is the largest physical jet fuel trader in Asia, and the sole supplier of imported jet fuel in China, according to management. With China fully reopening its borders in Jan 23, we expect CAO to benefit via two key earnings drivers, namely 1) higher jet fuel supply volumes across China&rsquo s key airports, and 2) rebounding contribution from 33%-owned associate Shanghai Pudong International Airport Aviation Fuel Supply (SPIA). With China expecting air passenger traffic to reach 75% of pre- pandemic levels by end-2023F, we see much clearer revenue visibility and expect CAO to record significant EPS CAGR of 27% in FY23-25F. First earnings driver: stronger jet fuel supply volumes Within China, imported jet fuel is predominantly used for outbound flights (as opposed to domestic). We expect CAO&rsquo s FY23F jet fuel supply volumes to rise 35% yoy on the back of a strong ramp-up in international flight volumes from 2Q23F onwards. We then expect accelerate towards pre-pandemic levels. We assume FY23-25F revenue CAGR of 4%, with strong volume growth partially offset by weaker ASPs as crude oil prices should continue to moderate. Second earnings driver: rebounding SPIA contribution SPIA is the exclusive supplier of jet fuel to Shanghai Pudong International Airport and forms the bulk of CAO&rsquo s net profit (c.60%). Earnings contribution from SPIA likely bottomed in FY22F as Shanghai was heavily affected by lockdowns. For FY23F/24F, we forecast a 70%/40% yoy rebound in SPIA&rsquo s refuelling volumes as passenger throughput recovers at Pudong International Airport. Combined with improving margins from better operating leverage, we expect share of SPIA&rsquo s profits to roughly double yoy in FY23F, followed by a c.50% yoy improvement in FY24F. Initiate coverage with an Add call and a TP of S$1.21 We initiate coverage on CAO with an Add call and a TP of S$1.21, based on 9.5x CY24F P/E. Our TP multiple is based on its pre-pandemic (FY10-19) average. CAO currently trades at 8.2x CY24F P/E, close to 0.5 s.d. below its 10-year mean. Re-rating catalysts include stronger ramp-up in flight volumes and M& A opportunities. Downside risks include a slow recovery in international flight volumes, margin contraction from unfavourable trading activities, and credit risks. |
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WBdisciple
Master |
16-Feb-2023 19:30
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Air passenger traffic returns to 70% of full strength in ChinaTHU, FEB 16, 2023 - 11:28 AM
PASSENGER loads at China&rsquo s top three airlines are rebounding as travel picks up again, boosted by people flying back to their hometowns for the Chinese New Year holidays and celebrating the chance to reunite with families and friends after nearly three years of Covid restrictions. China Southern Airlines filled 72.7 per cent of its seats in January, the highest passenger load factor among the trio, exchange filings show. That was up from 63 per cent a year ago. Air China was next, with a passenger load factor of 69.9 per cent for the month, followed by China Eastern Airlines, at 68.3 per cent. Passenger load factor is the percentage of seats that have been filled on a plane and is an indicator of profitability. The nation&rsquo s largest three carriers lost 190 billion yuan (S$37 billion) over the last three years as Covid upended travel, company filings showed last month. Losses accelerated in 2022 when authorities persisted with lockdowns and mandatory quarantine to contain the virus, even as the rest of the world moved on and reopened. In addition to the disruption caused by the pandemic, the Chinese airlines said they were affected by high oil prices and a weaker yuan, which dropped about 8 per cent against the dollar last year. Caixin recently said that several state-owned airlines had been criticised by Beijing for offering cut-price tickets in order to fill seats. The Civil Aviation Administration of China (CAAC), which denied that charge, has in the past imposed restrictions on cheap tickets, in 2021 saying it wanted to avoid malicious competition that may cause &ldquo cabbage prices&rdquo . A CAAC official said last month that China expects the number of international flights to rebound to between 15 per cent and 25 per cent of levels before the pandemic by the end of March.The recovery in international flights is slower than for domestic services, due to the longer time needed by airlines to arrange capacity and restart routes, and the reluctance of some passengers to travel abroad, the CAAC official Liang Nan said. International flight passenger traffic improved in January, the Shanghai Securities Newsreported on Thursday. As of Feb 6, for example, China Eastern was operating 52 international routes with 302 flights weekly. That will rise to 60 routes and 410 weekly flights by Feb 28. BLOOMBERG |
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WBdisciple
Master |
16-Feb-2023 18:46
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China&rsquo s Jan air passenger numbers jump 34.8% after Covid-19 curbs ease THU, FEB 16, 2023 - 12:42 PM China&rsquo s Jan air passenger numbers jump 34.8% after Covid-19 curbs ease CHINA&rsquo S January air passenger traffic rose 34.8 per cent from a year earlier, the aviation regulator said at a regular news conference on Thursday, after the country abandoned its strict zero-Covid policy. China has also resumed scheduled passenger flights with 58 countries since its border reopening on Jan 8, state media CCTV quoted the Civil Aviation Administration of China (CAAC) as saying. Last week, 98 domestic and foreign airlines operated a total of 795 international flights, up 65 per cent from the week before China abandoned quarantine for arrivals, CCTV reported. China was the world&rsquo s largest outbound tourism market before Covid-19 shut down global travel, with its overseas visitors spending US$255 billion in 2019. Chinese people, cut off from the rest of the world for three years by stringent curbs, flocked to travel and online booking sites ahead of borders reopening. Air passenger numbers during the Lunar New Year travel period from Jan 7 to Feb 15 rose 39 per cent from last year&rsquo s holiday travel, CAAC said. A CAAC official said air transportation recovered rapidly in January, with strong demand between cities such as Beijing, Shanghai, Guangzhou, Shenzhen and the popular holiday destination of Sanya on Hainan Island during the Lunar New Year period. REUTERS |
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