SOURCE / ECONOMY
Airline discounting continues after Golden Week and winter looming
Published: Oct 20, 2021 07:38 PM
Passengers show their health codes and have their temperatures checked before entering terminals at Nanjing Lukou International Airport on Thursday, the day domestic flights were resumed after suspension due to a COVID-19 resurgence that started on July 20. The outbreak that involved hundreds in at least 27 cities is the most extensive since Wuhan outbreak last year, National Health Commission officials said. Photo: VCG

Passengers show their health codes and have their temperatures checked before entering terminals at Nanjing Lukou International Airport on Thursday, the day domestic flights were resumed after suspension due to a COVID-19 resurgence that started on July 20. The outbreak that involved hundreds in at least 27 cities is the most extensive since Wuhan outbreak last year, National Health Commission officials said. Photo: VCG



Chinese airlines industry on the cusp of the traditional winter low season; with 70 to 50 percent discount on air tickets available across a large number of routes, some tickets prices even cheaper than high-speed rail, casting shadow on the fourth quarter's performance for major domestic carriers. 

The Global Times discovered that, for example, on October 25 from Shanghai to Beijing, the fare of nearly half of the 80 flights on that day was discounted by up to 70 percent, with the lowest fare displaying a 74-percent discount for an economy class ticket, costing only 437 yuan ($68), and the cheapest fare for the same high-speed rail line was 553 yuan.

On October 25 from Beijing to Guangzhou, the fare of nearly 50 out of 83 flights on that day was discounted by around 30 percent, and the lowest fare was 600 yuan. The second-class fare for the same route with high-speed rail was 862 yuan.

The discounting by airlines continues after a National Day holiday bounce that did not meet expectations. 

Data from the Civil Aviation Administration of China showed that civil aviation transported 9.29 million passenger trips during the seven days holidays in National Day, an average daily decrease of 26.9 percent compared with the same period in 2019, and an average daily decrease of 19.7 percent compared with the same period in 2020.

According to performance forecasts from China Express, its net profit attributable to the parent in the third quarter is expected to lose 121 million to 176 million yuan.

The company attributed the loss to localized outbreaks of Covid-19 and weakened demand for travel. The spread of the pandemic in the third quarter further caused a serious impact on the peak summer season of aviation, and the continued rise in oil prices this year has led to a substantial increase in the company's jet fuel costs.

Shandong Airlines also predicted that its loss in the first three quarters is expected to around 1.01 billion yuan to 1.2 billion yuan.  

Since Sunday, several areas in China have reported domestically transmitted confirmed cases and asymptomatic patients, also impacting sentiment amongst the travelling public.

Lanzhou in Northwest China's Gansu Province has requested residents not to leave the city for non-essential travel, the city also closed all tourist attractions and suspended operation of confined indoor spaces including Mahjong parlors and cinemas.

On Wednesday, Lanzhou reported six new positive cases, including four confirmed cases and two asymptomatic cases.

Global Times