Zero-Covid End Springs New Life into China Aviation Sector

Zero-Covid End Springs New Life into China Aviation Sector
'China's aviation sector is springing back to life since the sudden end of the 'Dynamic zero-Covid' policy'.

China’s abrupt end to its dynamic zero Covid policy summary is breathing new life into its ailing aviation sector, a new report from energy and environmental geo-analytics company Kayrros has noted.

“China’s aviation sector is springing back to life since the sudden end of the ‘Dynamic zero-Covid’ policy,” the report, which was sent to Rigzone, said. 

“Average jet fuel demand jumped by 75 percent, nearly 170,000 barrels per day, in two weeks, led by domestic travel,” the report added.

“Demand from Beijing’s two main airports more than doubled. In Shanghai, by far the nation’s main airline hub since the pandemic, demand grew more slowly, however,” the report continued.

According to a chart showing China’s jet fuel consumption over the last few years, which was included in the report, this demand has jumped to around 400,000 barrels per day. That’s still below 2022’s peak of just over 600,000 barrels per day seen in the beginning of the year, however, the chart showed. China’s jet fuel consumption was near 900,000 barrels per day at the start of 2020, before it sharply dropped to 200,000 barrels per day, the chart highlighted.

In a separate report sent to Rigzone recently, BofA Global Research warned that China is “set for a rough patch as Covid restrictions are rapidly eased despite inadequate vaccine protection”.

China is rapidly removing its zero-Covid restrictions against the backdrop of high levels of new infections, low levels of natural immunity in the population and low vaccination rates among the elderly,” the report noted.

“As a consequence, our economists expect a sharp deterioration in China’s growth momentum in the near term, as the country grapples with the resulting wave of infections, with successful reopening likely to materialize only by Q2 next year,” the report added.

Weekly confirmed Covid cases in China increased 1.34 percent in the week commencing November 28, to 146,141, and 2.42 percent in the week commencing December 5, to 149,674, but dropped 1.36 percent in the week commencing December 12, to 147,643, according to the latest figures from the World Health Organization (WHO). China’s weekly confirmed Covid case peak was seen in the week commencing May 23, at 576,367, WHO data shows.

As of December 19, 4.54pm CET, China has seen more than 10 million Covid cases, with 31,309 deaths, according to the WHO. As of November 29, the country has administered over 3.46 billion vaccine doses, WHO numbers highlight.

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