China's Airspace Reopens... Aviation Stocks Valuation Improves

Chinese Airlines Increase International Flights in Winter Schedule
Expecting Eased Quarantine Policies After 20th Party Congress

[Asia Economy Senior Reporter Cho Young-shin] Shanghai Securities News reported on the 19th that Chinese airlines, including China Southern Airlines, are increasing international flights by expanding international routes. International routes are subject to reciprocity according to air service agreements. The increase in international flights by Chinese airlines implies a corresponding increase by airlines of the counterpart countries.

Photo by Baidu Capture

The expansion of international routes is significant as it suggests a change in the Chinese government's 'Zero COVID' prevention policy. Domestically, there has been a prevailing expectation that China's epidemic prevention policies would be relaxed following the 20th National Congress of the Communist Party of China (20th CPC National Congress).

Shanghai Securities News reported that China Southern Airlines plans to resume routes this month including Guangzhou?Jakarta, Guangzhou?Dubai, Guangzhou?Manila, Guangzhou?Bangkok, Guangzhou?Phnom Penh, and Dalian?Tokyo (Narita). The media also added that from the 23rd, flights will be operated on the Shenyang?Incheon (Seoul) route.

China Eastern Airlines also announced plans to operate international flights to Bangkok, Tokyo (Narita), Incheon (Seoul), and Dubai from the end of this month. China Eastern Airlines finalized its winter international flight schedule and plans to increase international flights from 42 per week to 108 per week.

Hainan Airlines will operate routes during the winter season to Brussels, Moscow, Belgrade, Berlin, Manchester, Rome, Madrid, Vancouver, Tokyo, and Incheon, and will increase the Chongqing?Rome route to twice weekly.

Shanghai Securities News reported that Air China resumed routes to Manila, Jakarta, Tokyo, Warsaw, Athens, Vancouver, Toronto, and Los Angeles from the 29th of last month.

Quoting aviation experts, Shanghai Securities News explained that the number of international flights operated by Chinese airlines is expected to increase.

China’s air routes have shown signs of increase since last month. The average number of international flights operated daily in September was 35. This represents a 24.5% increase compared to the previous month, and the number of international passengers increased by 26.5% (an average of 10,147 passengers per day), Shanghai Securities News added.

Shanghai Securities News forecasted that the increase in international flights will improve the business performance of Chinese airlines and that the valuation of airline stocks will continue to improve.

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