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Chinese airlines see signs of recovery from Covid-19 pandemic

China’s top airline stocks surge despite a stumble in the first quarter

Chinese airline companies are rebounding from the impacts of the Covid-19 pandemic, media reports said. The report is produced by GlobalData, an analytics company.

China’s top airline stocks are surging despite a first-quarter stumble. The reasons behind the resurgence include the opening of the country’s borders, growing domestic demand, the rise of the Yuan including the slump in oil prices. 

It is reported that the share price of Spring Airlines recorded a quarter-to-date (QTD) return of 23.2 percent and a year-to-date (YTD) return of 1.6 percent as of September. Furthermore, the YTD return of China Southern Airlines, Air China and China Eastern Airlines are negative. However, these airlines recorded a positive QTD return of 21.9 percent, 9.7 percent and 19.9 percent, respectively.

Anindya Biswas, company profiles analyst at GlobalData, told the media,” unlike other global economies, China’s economy has been slowly on the rise and this is reflected in the Chinese airline sector as well. For the second quarter ended 30 June 2020 (Q2 2020), Chinese airline companies have shown signs of turnaround unlike their global counterparts that are suffering as a result of border shutdowns. Chinese low-cost carrier Spring Airlines has been one of the notable players in the Chinese airline industry leading the resurgence.”

The global aviation and the tourism industry have been walloped by the pandemic as nations went under strict lockdown, particularly European nations including the US, to contain the spread of the virus. As a result, passenger travel sharply dropped, leading to a loss for the airline companies. 

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