Dublin Jan 16 (BNA): The financiers at the heart of the $200 billion industry that supports airline fleets gather in Dublin this week, gambling that China’s decision to free travel will speed their recovery from the pandemic downturn, while warning of a shortage of planes. .
Three years after the spread of COVID-19 grounded thousands of planes, demand for air travel is booming again, buoyed by Beijing’s decision last month to scrap its COVID-free policies, Reuters reports.
In a report Monday, Avolon, the world’s second-largest charter company, predicted global traffic would return to pre-pandemic levels as early as June of this year — months earlier than most in the industry expected.
The International Air Transport Association, which represents global airlines, expects a full recovery in 2024.
“After a 70% recovery in passenger traffic last year led by … Europe and North America, growth in 2023 will be led by Asia, aided by the recent reopening in China,” said Avulun.
Data so far suggests Chinese are resuming travel ahead of the Lunar New Year, despite concerns about infection after Beijing ended restrictions last month. Passenger traffic has jumped to 63% from 2019 levels since the annual travel season began.
Others are not so optimistic.
Aviation consultant Bertrand Grabowski said: “Airlines are not significantly increasing the frequency of their flights to China. They are going in the right direction, but … it will take some time.”
The devastating impact of COVID-19 has put dozens of airlines out of business and wiped billions of dollars from balance sheets.
FKN