China international demand strong during Lunar New Year

Chinese international air travel demand during the Lunar New Year period remained robust, while domestic traffic was muted, according to a report from HSBC. 

International flights surged 25% compared to a year prior, while domestic flights dipped 2% — likely due to last year's exceptionally strong travel demand. International flights reached 89% of pre-pandemic levels. 

The report published by HSBC Global Research reported that daily air passenger numbers, including both domestic and international travellers on Chinese airlines, increased by 1.4%, reaching 2.3 million passengers per day during the Lunar New Year period.

The report also highlighted that airlines faced challenges, including weak domestic traffic, declining ticket prices, and high operating costs, while online travel agencies (OTAs) benefited from higher-value bookings and longer stays.

Economy-class airfares averaged $215.87 during the period, 3% higher than 2019 but 17% lower than last year, suggesting that travellers are seeking to save money.