Civil aviation takes flight path to recovery

Business efforts

Airlines worldwide have been badly hit by the pandemic, and some are taking on additional business to blunt its impact.

Last month, China Southern Airlines said it would explore expansion in new fields such as online retail, tourism and hotel bookings. It also plans to offer Japanese- and French-language training to children and adults, and is recruiting children to join a summer camp themed on civil aviation. Flight attendants are hosting livestream broadcasts on social media platforms, with the products on offer ranging from agricultural produce to Sichuan hotpot.

However, Yu warned carriers to be cautious about taking on additional business.

"The effectiveness of such business depends on the size of the airline. Earnings from livestreaming sales may be considerable for budget airlines, but the profits may be insignificant for large carriers," he said.

Yu added that China Southern Airlines is not simply exploring additional business, but is changing its business model.

Li, from Civil Aviation University of China, said some airlines have promoted cargo flights to make up for the loss of passengers. Demand for freight transportation grows when epidemic control measures are tightened, he added.

Before the pandemic emerged, revenue from cargo flights typically accounted for about 5 percent of an airline's total income. With the onset of COVID-19, passenger trips declined and the number of freight routes rose. In some cases, earnings from cargo flights doubled or even tripled.

Li said that although diverse attempts are being made to reboot the industry, the key is epidemic control and allowing the flow of people and goods.