China and Hong Kong

China

Official air traffic data revealed significant financial losses in China’s aviation industry in 2022. Despite many markets worldwide reporting their first post-pandemic profits, China’s losses surpassed the previous year’s figures. According to data from the Civil Aviation Administration of China (CAAC), China’s aviation industry incurred a loss of 217.44 billion yuan ($31.44 billion) in 2022, an increase from 137.46 billion yuan (approximately $20 billion) in 2021. Chinese airlines collectively generated an operating income of 336.48 billion yuan ($48.8 billion) in 2022, representing a 20.5% decrease from the previous year. However, Chinese airlines, including Air China, China Eastern, and China Southern, experienced record annual losses in 2022. Combined, they incurred a loss of $15.8 billion, nearly three times the $5.9 billion loss in 2021. Air China was the worst performer, with a loss of $5.6 billion, followed by China Eastern with a loss of $5.4 billion and China Southern with a loss of $4.8 billion. Key highlights include: y Domestic transport volume decreased by 39.55% compared to 2021. y The number of domestic travellers’ trips declined by 40.9% compared to 2021. y The number of international routes in 2022 was 336, down from 953 in 2019.

The statistics from the CAAC illustrate the extent of the losses and the impact of the pandemic on travel patterns. In 2022, passenger numbers reached 252 million, a 43% decline compared to 2021. Domestic flights accounted for 99.3% of the total passengers, while international routes carried less than two million passengers, representing a 26% increase from 2020. Flight efficiency, measured by the passenger load factor, fell from 73% in 2021 to 67% in 2022. Aircraft usage also declined from seven hours per day in 2021 to four hours per day in 2022.

Overall, China’s civil aviation market in 2022 faced significant losses, mainly due to the pandemic’s impact on passenger traffic and other factors. However, there are positive indications of recovery and improved prospects for the aviation industry