Fitch Ratings reports resilience of Chinese airports in off-season

A new report from Fitch Ratings shows how China’s airports maintained resilient air passenger volumes during its traditional off-season.

At the same time, air cargo in the country hit a record high in the second quarter of this year. 

International air passenger numbers increased by 10.1 percent quarter-on-quarter to 15.6 million in Q2-2024, recovering to 85.5 percent of the 2019 level. 

The report notes that China’s visa-free policy for travellers from certain countries is poised to accelerate the recovery of international air travel, especially for inbound tourism.

The growth in leisure travel is, likewise, fuelled by expanding markets and diversified destinations, while business travel remains subdued due to a weakening economy and budget cuts.

Meanwhile, air cargo volume reached an all-time high of 2.2 million tonnes during the second quarter, driven by the ongoing e-commerce boom. 

Several caveats

It should be noted, however, that geopolitical tensions, such as in the Red Sea and natural disasters like the Panama Canal drought, have further shifted demand towards air cargo.

Likewise, recovery remains uneven across destinations and North American routes continue to lag. China’s visa-free policy for travellers from certain countries is poised to accelerate the recovery of international air travel, especially for inbound tourism.

Extreme weather conditions and technology issues caused flight delays throughout the period. Coupled with fluctuating air ticket prices, these issues have incentivised passengers to switch to high-speed rail, particularly for short-haul routes.