SINGAPORE (Oct 1): The aviation industry in China and South Korea have proved a rare bright spot in Asia’s beleaguered aviation industry, as long holidays saw a rebound in domestic air travel. Most South Koreans are preparing to return to their ancestral hometowns for the three-day long Chuseok Harvest holiday while China’s Golden Week is expected to see heightened tourism numbers due to China’s early Covid-19 recovery. 

“China flight activity is expected to see further rebound in volume (103 index, up from 99 index last week),” says a report from JP Morgan led by its head analyst of infra, industrials & transport,  Karen Li. Cirium data suggests that domestic flight schedules for China during the impending holiday are likely to be up 11% y-o-y, though Chinese travel booking platform Ctrip predicts a 20% y-o-y decline in total trips made during Golden Week. 

Pricing pressures, says the report, are likely to persist due to excess capacity, with many Chinese airlines redeploy flight capacity to domestic routes. JP Morgan channel checks highlight that domestic air prices can be expected to decline 15-20% y-o-y ... (click on link for full story on theedgesingapore.com).