State-owned airlines post sluggish performance amid epidemic

China's three major carriers all posted sluggish operational data in February, in the wake of the global novel coronavirus epidemic, according to their statements released on Wednesday. However, the domestic air travel market is starting to pick up in March.

In February, the passenger turnover traffic for Air China, China Eastern Airlines and China Southern Airlines all declined more than 80 percent year-on-year, according to their statements.

The passenger turnover of Air China reached 3.65 billion, down 80.5 percent year-on-year. The passenger turnover of China Eastern came in at 2.95 billion, down 83.74 percent year-on-year, and China Southern saw its passenger turnover reach 3.46 billion, down 85.11 percent year-on-year.

The passenger load factor of the three carriers was around 50 percent in February, which was 30 to 40 percentage points lower than the same period of last year, according to their statements.

In March, with most enterprises in China gradually resuming their work, the domestic air travel market has been showing a trend of warming up. During the week of March 9 to March 13, the number of issued flight tickets was 35 percent higher than the previous week, and the business passenger flows of Beijing, Shanghai, Guangzhou and Shenzhen were rebounding, according to Qunar, one of the largest online travel agencies in China.

Air China said since the outbreak of the epidemic, the company has taken various measures in epidemic prevention and control. It will optimize the capacity, strengthen cost management, and take active measures to minimize the impact of the epidemic.

China Eastern said COVID-19 is quickly expanding globally, and the situation is getting increasingly severe in some countries and regions. The epidemic has significantly affected the transportation industry, as passenger demand and willingness to travel have dropped remarkably.

China Eastern suspended the operations of some flights, and it will adjust the capacity depending on the epidemic control development and market demand. It said there is big uncertainty regarding the duration and severity of the impact on the international and domestic aviation business, and investors should pay attention to potential risks.

China Southern also said the contagion will have an unfavorable impact on the company's operations, and the specific degree of the influence is uncertain.