InsightIQ data revealed China has experienced a drop in domestic air travel in the fifteen-day period prior to the Lunar New Year compared to the same period in 2020. Following the resurgence of new Covid-19 cases in early January, new travel restrictions and subsequent lower demand for domestic travel have meant deep capacity cuts from local airlines.
The flight data extracted from IBA’s InsightIQ Flights illustrates that Chinese carriers operated 41% fewer domestic flights, representing circa 66,500 fewer flights over the fifteen-day period prior to the annual festival compared to 2020 flight numbers.
Source: InsightIQ Flights, dated February 16th, illustrating domestic flights for 14 days before and after the Lunar New Year. (Chinese New Year fell on February 12th)
The Lunar New Year season has been long awaited by airlines, this period is reported to be one of the world’s biggest annual human migrations and the busiest period for Chinese airlines. The number of Covid-19 cases was reportedly down to almost zero in China at the end of 2020 and domestic traffic figures were showing good signs of improvement, reaching nearly 2019 domestic traffic levels.
In recent weeks, the Chinese government encouraged people not to travel and stated that the expected number of trips would be down by 60% compared to the 2019 Lunar New Year holiday season. It is too early to confirm the full impact, but IBA’s anticipates this will likely result in further capacity cuts from airlines over the fifteen-day period after the Lunar New Year.
Data from InsightIQ does reveal Chinese airlines are showing an improvement in terms of their active fleet during the Lunar New Year season in 2021 when compared to 2020. InsightIQ Fleet data illustrates the current number of parked and stored aircraft has decreased by 58% compared to the figure recorded in the same period as of February 2020. We will be monitoring how this number changes in the coming days.
If you have any further questions or comments please contact Finlay Grogan
IBA’s analysis platform - InsightIQ, flexibly illustrates multiple asset, fleet and market positions, actual and potential, to inform client choices and identify acquisition opportunities. Immediate access to crucial aircraft, engine, lease rate, fleet, and flight data eases appreciation of historic and future aircraft concentrations and operator profiles.
AuthorSee full profile
Significant uncertainty will remain in 2021, but the global aviation industry remains agile and resilient to weather future challenges in 2021 and beyond. Join IBA, the 2020 Appraiser of the Year, for a Market Update as we uncover, discuss, and predict trends across aviation finance for the year ahead. This webinar is a must for the aviation community looking for comprehensive, accurate and up-to-date market insight. Topics covered include: IBA’s aircraft values The changing face of airline fleets Possible airline failures The road to recovery OEM activity What are the changing trends in retirements? Transactional activity Trading sales and capital activity The slide deck is available to download here. If you have any further questions or comments, please contact Mike Yeomans.
If you have already been provided with your InsightIQ credentials, click InsightIQ. If you are looking for IBA.iQ, click IBA.iQ.