SCMP Reports $5.6 Billion Loss in China's Aviation Industry in Q1 Due to COVID-19

IATA Estimates $330 Billion Loss for Global Aviation Industry This Year... Concerns Over Prolonged Damage to Aviation Sector
Decline in Cargo Volume at China's 8 Major Container Ports (Shanghai, Ningbo, Shenzhen, Guangzhou, Qingdao, etc.)

[Asia Economy Reporter Cho Young-shin] The Hong Kong South China Morning Post reported on the 16th that losses in China's aviation industry due to the novel coronavirus infection (COVID-19) reached $5.6 billion (6.8 trillion KRW) in the first quarter of this year alone.

According to the Civil Aviation Administration of China (CAAC), passenger traffic in China's aviation industry decreased by 53.9% compared to the same period last year in the first quarter. In March alone, the number of passengers plummeted by 71.7% compared to the same month last year, and cargo volume dropped by 23.4% to only 484,000 tons.

The CAAC forecasted the future of China's aviation industry, stating, "Although economic activities in China are resuming, low levels may continue for the time being." It explained that since the world is continuing social distancing to prevent the spread of COVID-19, the aviation industry's trends are unlikely to change in the near future.

The International Air Transport Association (IATA) recently estimated that the global aviation industry will suffer a loss of $330 billion (403 trillion KRW) in passenger revenue this year. IATA added that as of early April, the number of flights worldwide had plummeted by 80% compared to the previous year. The SCMP reported that related industries such as airport services are also being hit in addition to flight operations.

The SCMP also reported that not only China's aviation industry but also its port industry is facing difficulties. China's container handling volume has decreased for two consecutive weeks. The China Port Association reported that container throughput at eight major Chinese ports, including Shanghai, Ningbo, Shenzhen, and Guangzhou, decreased by 5% in the second week of April, marking two consecutive weeks of decline. Since major Chinese ports also serve as transshipment hubs, the decrease in China's cargo volume implies a global decline in cargo volume. In fact, China's exports (in dollar terms) decreased by 6.6% compared to the previous year last month.

Furthermore, the SCMP reported that the suspension of operations on China-Northern Europe, China-Mediterranean, and China-US routes by Maersk, the world's largest shipping company, and MSC, the second largest, also contributed to the decline in handled cargo volume.

This content was produced with the assistance of AI translation services.