Asian Air Travel Industry Gaining Momentum as Pandemic-Era Travel Curbs Ease

A passenger jet of Taiwan's China Airlines at Taipei Songshan Airport in Taipei, Taiwan, on June 8, 2020. (Ann Wang/Reuters)

Passenger airline traffic in the Asian Pacific region is on the mend, with most countries easing pandemic-era travel curbs, but China’s prolonged border closures are slowing recovery, the International Air Transport Association (IATA) said.

Philip Goh, IATA regional vice president, said Tuesday that passenger airline traffic in the region is expected to rebound to roughly 73 percent of 2019 levels by year-end as travel restrictions ease.

The latest figures also take into account China’s impending reopening of its borders, though it remains unclear when this will occur.

“There is no mistaking I think the momentum is very strong, especially with all major markets in the Asia-Pacific now open except for China,” Goh told reporters.

IATA estimates that international passenger traffic in the region will not return to pre-pandemic levels until 2025, as August traffic was just 38 percent of 2019 levels.

Asia’s aviation recovery has lagged compared to other regions in large part due to China’s border closures, which have kept its international passenger number averaging 2 percent to 3 percent of pre-pandemic levels, according to IATA.

China has maintained its “zero COVID-19” strategy of mass lockdowns and strict border controls in an attempt to contain the spread of the virus.

Reopening of Borders

Airlines in North Asia have seen a drop in consumers, but the outlook is expected to improve as Hong Kong, Taiwan, Japan, and South Korea relax quarantine and testing requirements.

Japan has lifted its ban on visa-free travel and resumed accepting individual travelers. South Korea has scrapped the requirement for a pre-travel COVID-19 test, and Hong Kong no longer requires travelers to quarantine in hotels.

Taiwan reopened its borders on Thursday, allowing international visitors to enter without having to undergo quarantine for the first time in more than two and a half years, Taiwan News reported.

Taiwan’s China Airlines and Korean Air remained profitable through much of the pandemic on the back of a surge in cargo rates. The freight market is starting to weaken, but a rise in passenger traffic will help offset revenue loss.

Japan Airlines Co. Ltd. and ANA Holdings Inc. will benefit from Japan’s opening to visa-free tourist travel this week, with a weak yen making it an attractive destination for overseas visitors.

Hong Kong’s Cathay Pacific Airways Ltd., which parked much of its fleet in the desert during the pandemic because of a lack of demand, is struggling to hire enough staff and bring planes back quickly as rules ease.

Reuters contributed to this report.